Touchstone Exploration Inc (AIM:TXP, TSX:TXP, OTC:PBEGF) has reported US$10.49mln of petroleum sales in the first quarter of 2022, up 28% on the preceding three month period.
At an average 1,396 barrels of production per day during Q1 output was up around 4% quarter-on-quarter.
Operating netback (the amount of cash per barrel recouped to the company) amounted to US$37.83 per barrel in Q1, up 26% on Q4.
"Our first quarter results reflected a combination of increased commodity pricing and higher production volumes from our legacy crude oil properties,” said Paul Baay, Touchstone chief executive.
Touchstone reported US$1.42mln of funds from operations and said it made a net loss of US$236,000. It ended the quarter with US$10.14mln of cash, with a working capital surplus of US$4.25mln and US$21.2mln of net debt.
Operationally, the company reached an important growth milestone in March after it landed approval for a field development plan for the Cascadura area. Since March, the company has been advancing the Coho project’s pipeline and initial production from the field is anticipated within four to six weeks.
The National Gas Company of Trinidad and Tobago has meanwhile agreed to purchase the Coho pipeline, once it is commissioned, and the national body has also approved a gas pipeline at Cascadura.
“Our near-term priority is to bring our Coho and Cascadura exploration discoveries onto production, with a focus on converting our extensive Trinidad reserve base to sustainable long-term cash flows to fund our portfolio of future development and exploration opportunities," Baay added.
“We are forecasting first gas from Coho imminently, which will represent the initial step change in our production profile.
“With the approval of our Cascadura field development plan and our EIA [Environmental Impact Assessment] in the final stages of documentation and clarification, we are making progress toward bringing our Cascadura discovery onto production.”