(Touchstone, 13.Nov.2024) — Touchstone Exploration Inc. reported financial and operating results for the three and nine months ended 30 Sep. 2024 and updated 2024 guidance.
Third Quarter 2024 Financial and Operating Highlights
• Achieved average quarterly production of 5,211 boe/d (75% natural gas), a 54% increase relative to 3,391 boe/d produced in the third quarter of 2023 (60% natural gas), reflecting a full quarter of natural gas production from the Cascadura field, slightly offset by Cascadura natural gas and associated liquids natural declines.
• Realized petroleum and natural gas sales of $13,253,000 compared to $11,682,000 in the equivalent quarter of 2023, primarily attributed to a 93% increase in natural gas production volumes, slightly offset by a reduction in average realized crude oil and liquids pricing.
• Crude oil production contributed $7,603,000 of petroleum sales at an average realized price of $66.72 per barrel.
• Cascadura field production volumes in the quarter contributed $4,908,000 of natural gas sales at an average realized price of $2.50 per Mcf and $306,000 of petroleum sales at an average realized price of $67.15 per barrel.
• Natural gas production from the Coho-1 well contributed $436,000 of natural gas sales in the quarter at an average realized price of $2.16 per Mcf.
• Generated an operating netback of $7,408,000, a 23% increase from the third quarter of 2023, primarily due to increased petroleum and natural gas sales and related royalties, as well as a 2% reduction in operating expenses.
• Achieved quarterly funds flow from operations of $3,024,000 in the third quarter of 2024 compared to $2,432,000 in the prior year equivalent period, attributed to the increase in operating netback partially offset by $722,000 of transaction costs incurred in the quarter.
• Recognized net earnings of $1,847,000 ($0.01 per basic and diluted share) compared to net earnings of $988,000 ($0.00 per basic and diluted share) in the comparative quarter of 2023.
• $3,068,000 in quarterly capital investments primarily focused on the completion of two Cascadura development wells, advancing the construction of the flowline from the Cascadura C site to the Cascadura natural gas processing facility and construction of the Cascadura B drilling pad.
• Exited the third quarter of 2024 with a cash balance of $6,549,000 and a net debt position of $29,593,000, resulting in a net debt to annual funds flow from operations ratio of 1.25 times, well within the company’s internal target of 2.0 times or below.
• Touchstone continued to accumulate Trinidad onshore acreage, executing two exploration and production licences in the third quarter for the Charuma and Cipero blocks.
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