Touchstone Exploration Inc (AIM:TXP, TSX:TXP, OTC:PBEGF) told investors it ended 2021 with significant opportunities at the Ortoire property in Trinidad.
The company, in its annual year-end reserves statement, said it had 121,332 barrels of 3P reserves (proved, probably and possible reserves) which marked a 21% increase on the prior year. Meanwhile, 2P reserves were up 16% at 75,547 barrels and 1P reserves were 13% higher at 38,731 barrels.
It added that the estimated net present value of future net revenues (discounted at 10%, a before tax) increased by 31% to US$1.31bn on a 3P basis, and, for 2P and 1P was up 29% and 31% at US$881.8mln and US$474.9mln respectively.
The discovery at the Royston project was estimated to have between 128.3mln and 211.7mln barrels, with the ‘best’ estimate pitched at 165.7mln barrels, though these barrels are yet to feature in the company’s stated reserves.
"Our 2021 independent reserves evaluation confirms the significant opportunities at our Ortoire property and the profitability of all of our assets in Trinidad,” said chief executive Paul Baay.
“The estimated additions of both future net revenues and reserves at the newly discovered Royston light oil pool are reflective of our successful drilling activities in 2021 and the considerable size of the prospect in the Herrera Formation.
“The initial Royston reserves evaluation was conservative, given only one well was drilled to date and no reserves were assigned to the subthrust sheet.
“We have two exciting opportunities to substantially increase reserves in the area with the Royston Deep well intended to evaluate the subthrust sheet of the Herrera Formation and the Kraken well targeting the deeper Cretaceous Formation.”
Baay meanwhile highlighted that the company is proceeding with the final step to bring the Coho gas field online with anticipated first natural gas production in May, whilst it is also on-track with operations at the Cascadura field where completion is targeted for September.
“Our focus is to convert our extensive Trinidad resource base to cash flows while continuing to target further exploration opportunities across our licence areas,” Baay added.
“It is an exciting time for Touchstone, as it is rare to have a combination of solid low decline base production, a near-term step change in production, a multi-year development drilling program and extensive exploration opportunities.”