Touchstone Exploration year end results show solid reserve growth
Abraham Darwyne
Company News - 3 min read
11:52, 7th March 2019

Touchstone Exploration (TXP) FOLLOW, the AIM listed exploration, development and production company in the Republic of Trinidad and Tobago, has released promising 2018 year end results.

The company increased its proven (1P) reserves 5% to 11,222 Mbbl and its after tax NPV 18% to $79.8m. It also increased its proven + probable (2P) reserves by 4% to 19,275 Mbbl and after tax NPV by 14% to $145.4m.

James Shipka, Chief Operating Officer, commented: “The updated reserves evaluation validated our strong base production and reflected the results of our successful 2018 development drilling campaign. Solid 2018 reserves growth was achieved from our low decline production base and drilling success.”

Shares in Touchstone ticked up 2% to 12.1p a share

Future development costs for its portfolio of low risk recompletion projects and drilling locations were $46m for 1P reserves, and $68.6m for 2P reserves. It also reported that finding, development, acquisition (FD&A) costs were $12.71 per barrel, with a 2.2 times recycle ratio and 2P FD&A costs were 10.85$ per barrel, with a 2.5 times recycle ratio.

Mr. Shipka said: “ Capital efficiencies seen in our low finding and development costs and strong recycle ratios support our belief in organic growth through the drill bit complemented by low cost recompletions.”

Touchstone is highly active within onshore Republic of Trinidad & Tobago. It managed to deliver average crude oil sales volumes of 1994 bopd in January 2019.

It raised £3.8m in a private placement in February to finance the drilling on its Ortoire exploration property where it has an 80% working interest, with spudding expected in Q2 2019, targeting 9000 feet of total depth.

Ortoire has an unrisked best estimate of 3,753 Mboe of oil equivalent, with 30002 Mboe net to Touchstone. A detailed report of the independent prospect evaluation of the Ortoire exploration block can be found here.

“Paul Baay, President and CEO of Touchstone said that “Proving this geological model could be monumental for Touchstone and Trinidad as it will set up a multi year exploration and development program."
 
Investors will be closely watching progress the company makes as it drives stable production as well as moves towards developing significant exploration upside going forward.

Follow news & updates from Touchstone here: FOLLOW

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