TOUCHSTONE EXPLORATION INC-Q1 2023 FINANCIAL AND OPERATING RESULTS

TOUCHSTONE EXPLORATION INC-Q1 2023 FINANCIAL AND OPERATING RESULTS

 

FIRST QUARTER 2023 FINANCIAL AND OPERATING RESULTS

CALGARY, ALBERTA (May 12, 2023) - Touchstone Exploration Inc. ("Touchstone", "we", "our", "us" or the"Company") (TSX, LSE: TXP) reports its operating and financial results for the three months ended March 31, 2023. Selected information is outlined below and should be read in conjunction with our March 31, 2023 unaudited interim condensed consolidated financial statements and related Management's discussion and analysis, both of which will be available under our profile on SEDAR (www.sedar.com) and on our website (www.touchstoneexploration.com). Unless otherwise stated, all financial amounts herein are rounded to thousands of United States dollars.

First Quarter 2023 Financial and Operational Highlights

·      Produced quarterly average volumes of 2,139 boe/d, representing a 53 percent increase relative to the 1,396 boe/d produced in the prior year equivalent quarter and a 4 percent decrease compared to the fourth quarter of 2022.

·      Natural gas production from our Coho-1 well averaged net volumes of 5.1 MMcf/d (854 boe/d) in the quarter and contributed $976,000 of net natural gas sales at an average realized price of $2.12/Mcf.

·      Realized petroleum and natural gas sales of $8,476,000 compared to $10,496,000 in the 2022 comparative quarter, as the incremental $976,000 in net natural gas sales were offset by decreased crude oil sales of $2,996,000, reflecting a 22 percent decline in realized crude oil pricing and an 8 percent decrease in crude oil production.

·      Generated an operating netback of $3,652,000, representing a 23 percent decrease from the 2022 equivalent quarter primarily attributed to a 19 percent decline in petroleum and natural gas sales.

·      Reported funds flow from operations of $803,000 in the quarter compared to $691,000 in the preceding quarter and $1,443,000 in the prior year equivalent quarter.

·      Recognized a net loss of $279,000 ($0.00 per basic share) in the quarter compared to a net loss of $236,000 ($0.00 per basic share) reported in the same period of 2022.

·      $9,019,000 in quarterly capital investments primarily focused on expenditures directed to the drilling of the Royston-1X sidetrack well and progressing construction of the Cascadura natural gas and liquids facility.

·      Exited the quarter with a cash balance of $10,859,000, a working capital deficit of $4,383,000 and a principal balance of $25,500,000 remaining on our term credit facility, resulting in a net debt position of $23,883,000.

·      Natural gas and liquids facility construction operations on the Cascadura A surface location have progressed and we continue to target completion and commissioning for first production at Cascadura on or about June 30, 2023.

·      Construction of the Cascadura C surface location is complete, which will be the location of our first Cascadura development well.

·      The second production test of the Royston-1X well is expected to commence in late May 2023 once the service rig has moved onto the lease following the drilling rig being moved to the Cascadura C location.

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