Touchstone Exploration Inc (AIM:TXP, TSX:TXP, OTC:PBEGF) reported higher crude oil sales and prices for the first two months of this year and said its near-term priority is to bring its Coho and Cascadura exploration discoveries into production.
“Barring any significant delays, we forecast that our year-end 2021 liquidity position provides the funding required to meet our near-term focus of commencing production at Coho and Cascadura,” said president and chief executive Paul Baay in the company’s results statement for 2021.
“By the end of the year, we expect to develop into a sustainable cash flow generating production-based company with strong exploration prospects."
Average daily crude oil sales rose to 1,382 barrels per day (bbls/d) in January 2022, at a price of US$71.68/bbl, and 1,384 bbls/d in February at US$81.30/bbl. It sold an average 1,342bbls/d in 2021 at US$66.81 per barrel.
Net earnings in the fourth quarter of 2021 surged to US$6.5mln from US$1.7mln in the same period of 2020. The fourth quarter figure included net impairment reversals of US$13.7mln, partially offset by a deferred income tax expenses of US$7.2mln.
Fourth-quarter revenue rose 43% to US$20.4mln boosted by an 80% surge in oil prices and slightly higher production.
The company’s shares were up 12% at 84.50p in late-morning trading, outperforming a 0.09% rise in the wider FTSE AIM all share index.