TIDMTXP
RNS Number : 2208X
Touchstone Exploration Inc.
19 December 2023
THIS ANNOUNCEMENT RELATES TO THE DISCLOSURE OF INFORMATION THAT
QUALIFIED OR MAY HAVE QUALIFIED AS INSIDE INFORMATION FOR THE
PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 596/2014
AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION
(WITHDRAWAL) ACT 2018.
TOUCHSTONE ANNOUNCES 2024 CAPITAL BUDGET, PRELIMINARY 2024
GUIDANCE AND AN OPERATIONAL UPDATE
CALGARY, ALBERTA (December 19, 2023) - Touchstone Exploration
Inc. ( " Touchstone ", "we", "our" or the " Company " ) (TSX, LSE:
TXP) is pleased to announce its annual 2024 capital budget,
preliminary 2024 guidance and an operational update.
Paul Baay, President and Chief Executive Officer, commented:
"Our top priority remains maintaining a culture of safe and
responsible operations that continues to drive near and long-term
value creation for our investors. I am pleased to announce our
growth-oriented capital budget for 2024 which reinforces
Touchstone's commitment to pursue development opportunities that
generate positive returns to position the Company for sustained
success. The budget and preliminary guidance reflects our near-term
strategy to deploy capital to developmental drilling opportunities
and use our existing natural gas and liquids infrastructure
capacity. We will remain disciplined when deploying our 2024
capital and increasing our credit capacity, adhering to our
long-term net debt and liquidity targets. This approach will allow
us to fund future exploration drilling from cash flows expected to
be generated through our 2024 development drilling program and
maximization of our existing financing facilities."
Funding Position (1)
The Company is in advanced discussions with its existing lender
to increase its current debt capacity to facilitate the forecasted
timing and amount of the 2024 capital budget presented herein. The
2024 budget contemplates increasing the Company's revolving
component of its credit facility from $7 million to $20 million in
the first quarter of 2024. Although we are confident of reaching
agreement, currently there is no firm commitment in place between
the parties. Accordingly, the 2024 budget and preliminary guidance
may be subject to change, and such changes may be material. The
Company will provide further updates in due course.
2024 Budget Highlights ( [1] )
-- Capital budget allocation - we plan to invest approximately
$33 million of capital in 2024, with approximately 42 percent of
our capital expenditures( [2] ) directed to our Cascadura field and
38 percent to our Coho assets. The remaining 20 percent is
allocated to our legacy oil properties, exploration licence
payments and corporate infrastructure.
-- Drilling operations - the initial 2024 capital budget
contemplates drilling two Cascadura development wells, two CO-1
Block crude oil development wells, one Coho development well, and
one Coho exploration well.
-- Production growth - our 2024 mid-point annual average
production guidance of 9,400 boe/d represents an approximate 135
percent increase from our forecasted 2023 average production, with
a budgeted exit average production rate of 14,500 boe/d. Annual
production guidance is 9,100 to 9,700 boe/d (approximately 82
percent natural gas weighted).
-- Funds flow generation and balance sheet strength - the 2024
budget is designed to generate approximately $32 million of funds
flow from operations(2) (Brent price of $75.00/bbl and an 18
percent realized Brent differential), resulting in a net debt to
annual funds flow from operations ratio(2) of 0.78 times.
2024 Budget and Guidance Overview
For 2024, Touchstone's Board of Directors has approved an
initial capital budget of $33 million to drill, complete and tie-in
six wells, resulting in estimated annualized average daily
production between 9,100 boe/d and 9,700 boe/d with a forecasted
production mix of 82 percent natural gas and 18 percent crude oil
and liquids.
Touchstone's initial 2024 drilling plan includes drilling two
legacy property crude oil wells, two Cascadura development wells,
one Coho development well and one Coho exploration well. Production
growth is expected to be weighted in the fourth quarter of 2024,
with two Cascadura wells expected to be drilled in the first half
of the year and tied-in to the Cascadura plant prior to the end of
the third quarter of 2024. The two Coho wells are expected to be
drilled in the fourth quarter of 2024, and production additions
from those wells are anticipated in the first quarter of 2025.
Using midpoint forecasted average production of 9,400 boe/d and
a Brent Benchmark price of $75.00 for crude oil and liquids,
Touchstone expects to generate approximately $32 million of funds
flow from operations. Based on the approved capital budget of $33
million, Touchstone is forecasting to exit 2024 with a net debt of
$25 million, resulting in a net debt to annual funds flow from
operations ratio of 0.78 times.
2024 Guidance Summary (1)
Annual Guidance Year ending
December 31,
2024
---------------------------------------------- ---------------
Capital expenditures (2) ($000's) 33,000
Average daily production (3) (boe/d) 9,100 to 9,700
% natural gas(4) 82%
% crude oil and liquids(4) 18%
Average Brent crude oil price ($/bbl) 75.00
% realized discount to Brent benchmark price 18%
Funds flow from operations(5) ($000's) 32,000
Net debt - end of year (2)(5) ($000's) 25,000
Notes:
(1) Forward-looking statement representing Management estimates.
Additional information regarding the assumptions used are provided
in the "Advisories - Assumptions for 2024 Guidance" section
herein.
(2) Non-GAAP financial measure. See the "Advisories - Non-GAAP
Financial Measures" section herein for additional information on
the definitions and calculation of these measures.
(3) In the table above and elsewhere in this announcement,
references to "boe" mean barrels of oil equivalent that are
calculated using the energy equivalent conversion method. See the
"Advisories - Oil and Natural Gas Measures" section herein for
further information.
(4) See the "Advisories - Product Type Disclosures" section herein for further information.
(5) The financial performance measures included in the Company's
2024 preliminary guidance are based on the midpoint of the average
production forecast.
Operational Update
In November 2023, we achieved average net sales volumes of 8,268
boe/d as follows:
-- 6,623 boe/d (8,279 boe/d gross) of Cascadura field net sales volumes consisting of:
- net natural gas sales volumes of 36.1 MMcf/d or 6,022 boe/d
(45.1 MMcf/d or 7,528 boe/d gross) with a realized price of
$2.46/Mcf; and
- net natural gas liquids volumes of 601 bbls/d (751 bbls/d
gross) with an average realized price of $71.46 per barrel;
-- Coho field net average natural gas sales volumes of 3.2
MMcf/d or 527 boe/d (4.0 MMcf/d or 659 boe/d gross) at a realized
price of $2.29/Mcf; and
-- average gross and net daily crude oil sales volumes of 1,118
bbls/d with an average realized price of $71.46 per barrel.
Cascadura
Commissioning of the Cascadura natural gas facility has been
completed, and the facility is fully functional. Since commencing
production in September, the Cascadura facility has had an uptime
of 97.9 percent with minimal interruptions experienced through the
commissioning phase. Through November 30, 2023, the facility has
processed 3.8 billion cubic feet of gross natural gas volumes and
73 Mbbls of gross NGL production volumes.
Touchstone continues to optimize Cascadura production volumes,
with adjustments being made to the mechanical chokes which are
constraining production in both wells. Through December 1 to
December 17, 2023, Cascadura-1ST1 produced approximately 35.7
MMcf/d of gross field estimated natural gas volumes from the upper
overthrust sheet while Cascadura Deep-1 contributed approximately
11.4 MMcf/d of gross field estimated natural gas production from
the lower overthrust sheet.
We are evaluating the Cascadura Deep-1 well for future
optimization, including the potential for additional perforations
in the lower sheet. The additional perforations could increase
production by reducing current reservoir draw down rates allowing
for an increase in the surface choke, which is currently at 54
percent. These additional perforations can be achieved without the
use of a service rig or having to kill the well. The Cascadura
Deep-1 well has approximately 200 feet of perforations currently
open (118 feet net pay), and wireline logs indicate an additional
149 feet of reservoir sands (109 feet net pay) in the lower part of
the formation available for future completion. The well also has
366 feet of gross sand (274 feet net pay) in the upper overthrust
sheet that can also be perforated in the future. Touchstone
anticipates commencing a staged approach to adding these sands in
the lower overthrust sheet in the first half of 2024.
Preparation works for drilling the Cascadura-2 development well
using Star Valley Rig #205 are underway, with the intent to spud
early in the first quarter of 2024 from the Cascadura-C surface
location located approximately 5,000 feet northeast of our
producing Cascadura wells. The Cascadura-2 well is targeting the
same Herrera 7bc overthrust sand packages as the current Cascadura
producing wells.
Coho
Touchstone completed a workover on the Coho-1 well on December
4, 2023, successfully isolating the lowermost perforations and
shutting off approximately 77 percent of the produced water. Two
weeks following the workover, field estimated gross production
volumes have averaged approximately 4.6 MMcf/d of natural gas with
approximately 54 barrels of water per day, compared to November
gross production volumes of 4.0 MMcf/d of natural gas and 230
barrels of water per day. Based on the decreased water production,
Touchstone expects fluid hauling expenses to decrease by
approximately 80 percent.
Preparations are underway to facilitate the drilling of the
Coho-2 development well and the Gibba-1 exploration well which are
expected to be drilled on the existing Coho-1 surface location in
the fourth quarter of 2024.
Royston
Production testing of the Royston-1X exploration well has been
suspended, and no further testing or expenditures are planned. The
uppermost Karamat and Herrera sands were put to pump, however the
rates encountered were not economic. Touchstone will review the
data collected during testing from both the Royston-1 and
Royston-1X wells to determine if a declaration of commerciality for
the Royston structure is warranted.
CO-1 Block
Preparations are underway on our CO-1 block for a two
development well drilling program. A local drilling contractor is
expected to mobilize a drilling rig to the location in late
January, pending completion of their current drilling operations.
Two wells are expected to be drilled from an existing surface
location, both targeting Forest and Cruse sands which have proven
to be highly prospective based on the Company's previous drilling
campaign offsetting the area.
Touchstone Exploration Inc.
Touchstone's updated corporate presentation is available on our
website at www.touchstoneexploration.com .
Touchstone Exploration Inc. is a Calgary, Alberta based company
engaged in the business of acquiring interests in petroleum and
natural gas rights and the exploration, development, production and
sale of petroleum and natural gas. Touchstone is currently active
in onshore properties located in the Republic of Trinidad and
Tobago. The Company's common shares are traded on the Toronto Stock
Exchange and the AIM market of the London Stock Exchange under the
symbol " TXP " .
For further information about Touchstone, please visit our
website at www.touchstoneexploration.com or contact:
Touchstone Exploration Inc. Tel: +1 (403) 750-4487
Paul Baay, President and Chief Executive
Office
Scott Budau, Chief Financial Officer
James Shipka, Chief Operating Officer
Shore Capital (Nominated Advisor Tel: +44 (0) 207 408 4090
and Joint Broker)
Daniel Bush / Toby Gibbs / Iain Sexton
Canaccord Genuity (Joint Broker) Tel: +44 (0) 207 523 8000
Adam James / Ana Ercegovic
FTI Consulting (Financial PR) Tel: +44 (0) 203 727 1000
Nick Hennis / Ben Brewerton Email: touchstone@fticonsulting.com
Advisories
This announcement contains information that qualified or may
have qualified as inside information for the purposes of Article 7
of the Market Abuse Regulation (EU) 596/2014 ("MAR") as it forms
part of UK domestic law by virtue of the EUWA ("UK MAR"),
encompassing information relating to the Company's 2024 capital
budget and preliminary guidance. For the purposes of UK MAR and
Article 2 of the binding technical standards published by the
Financial Conduct Authority in relation to MAR as regards
Commission Implementing Regulation (EU) 2016/1055, the person
responsible for the release of this announcement is Paul Baay,
President and Chief Executive Officer.
Currency
All financial figures are stated in United States dollars unless
otherwise noted.
Forward-looking Statements
The information provided in this announcement contains certain
forward-looking statements and information (collectively,
"forward-looking statements") within the meaning of applicable
securities laws. Such forward-looking statements include, without
limitation, forecasts, estimates, expectations and objectives for
future operations that are subject to assumptions, risks and
uncertainties, many of which are beyond the control of the Company.
Forward-looking statements are statements that are not historical
facts and are generally, but not always, identified by the words
"expect", "plan", "anticipate", "believe", "intend", "maintain",
"continue to", "pursue", "design", "result in", "sustain"
"estimate", "potential", "growth", "near-term", "long-term",
"forecast", "contingent" and similar expressions, or are events or
conditions that "will", "would", "may", "could" or "should" occur
or be achieved. The forward-looking statements contained in this
announcement speak only as of the date hereof and are expressly
qualified by this cautionary statement.
Specifically, this announcement includes, but is not limited to,
forward-looking statements relating to: the Company's business
plans, strategies, priorities and development plans; Touchstone's
ability to pursue development opportunities that generate positive
returns and position it for success; the Company's intention to
expand the current revolving portion of its credit facility; the
focus of Touchstone's 2024 capital plan, including pursuing
developmental drilling activities and optimizing existing natural
gas and liquids infrastructure capacity; anticipated 2023 and 2024
annual average production and production by commodity; forecasted
production decline rates; anticipated timing of developmental and
exploration drilling production; anticipated 2024 capital
expenditures including estimations of costs and inflation
incorporated therein; expected drilling activities, including
locations and the timing thereof; anticipated timing of well tie-in
operations; forecasted 2024 average Brent reference price and the
Company's budgeted realized price in relation thereto; forecasted
royalty, operating, general and administration, cash finance and
income tax expenses; anticipated funds flow from operations and net
debt; field estimated production; the Company's expectation of
decreased Coho fluid hauling expenses; the quality and quantity of
prospective hydrocarbon accumulations based on analysis of wireline
logs; and T ouchstone's current and future financial position,
including the sufficiency of resources to fund future capital
expenditures and maintain financial liquidity. The Company's actual
decisions, activities, results, performance, or achievement could
differ materially from those expressed in, or implied by, such
forward-looking statements and accordingly, no assurances can be
given that any of the events anticipated by the forward-looking
statements will transpire or occur or, if any of them do, what
benefits that Touchstone will derive from them. The assumptions
used to generate this forward-looking formation and statements
include, among other things, the assumption that the Company will
be able to increase the revolving component of its credit facility
from $7 million to $20 million in the first quarter of 2024.
Although the Company believes that the expectations and
assumptions on which the forward-looking statements are based are
reasonable, undue reliance should not be placed on the
forward-looking statements because the Company can give no
assurance that they will prove to be correct. Since forward-looking
statements address future events and conditions, by their very
nature they involve inherent risks and uncertainties. Actual
results could differ materially from those currently anticipated
due to a number of factors and risks. Certain of these risks are
set out in more detail in the Company's 2022 Annual Information
Form dated March 23, 2023 which is available under the Company's
profile on SEDAR+ ( www.sedarplus.ca ) and on the Company's website
( www.touchstoneexploration.com ). The forward-looking statements
contained in this announcement are made as of the date hereof, and
except as may be required by applicable securities laws, the
Company assumes no obligation or intent to update publicly or
revise any forward-looking statements made herein or otherwise,
whether as a result of new information, future events or
otherwise.
This announcement contains future-oriented financial information
and financial outlook information (collectively, "FOFI") about
Touchstone's prospective results of operations and production
included in its 2024 guidance, all of which are subject to the same
assumptions, risk factors, limitations, and qualifications as set
forth in the paragraphs above. The FOFI contained in this
announcement was approved by Management as of the date of this
announcement and was provided for the purpose of providing further
information about Touchstone's future business operations. This
information has been provided for illustration only and, with
respect to future periods, is based on budgets and forecasts that
are speculative and are subject to a variety of contingencies and
may not be appropriate for other purposes. Touchstone and its
Management believe that FOFI has been prepared on a reasonable
basis, reflecting Management's best estimates and judgments, and
represents, to the best of Management's knowledge and opinion, the
Company's expected course of action. However, because this
information is highly subjective, it should not be relied on as
necessarily indicative of future results. Touchstone disclaims any
intention or obligation to update or revise any FOFI contained in
this announcement, whether as a result of new information, future
events or otherwise, unless required pursuant to applicable law.
Readers are cautioned that the FOFI contained in this announcement
should not be used for purposes other than for which it is
disclosed herein, and the financial outlook information contained
herein is not conclusive and is subject to change. Changes in the
intended increase in the Company's credit facility, variations in
forecasted crude oil and liquids prices, differences in the amount
and timing of capital
expenditures, and variances in average production estimates and
decline rates can have a significant impact on the key performance
measures included in the guidance disclosed herein. Management does
not have firm commitments for its intended increase in debt
capacity nor for the costs, expenditures, prices or other financial
assumptions used to prepare the financial outlook or assurance that
such operating results will be achieved and, accordingly, the
complete financial effects of the forecasted costs, expenditures,
prices and operating results are not objectively determinable. The
actual results of the Company's operations and the resulting
financial results will vary from the amounts set forth in this
announcement and such variations may be material.
Non-GAAP Financial Measures
This announcement references various non-GAAP financial
measures, non-GAAP ratios, capital management measures and
supplementary financial measures as such terms are defined in
National Instrument 52-112 Non-GAAP and Other Financial Measures
Disclosure. Such measures are not recognized measures under
Canadian Generally Accepted Accounting Principles ("GAAP") and do
not have a standardized meaning prescribed by International
Financial Reporting Standards ("IFRS") and therefore may not be
comparable to similar financial measures disclosed by other
issuers. Readers are cautioned that the non-GAAP financial measures
referred to herein should not be construed as alternatives to, or
more meaningful than, measures prescribed by IFRS, and they are not
meant to enhance the Company's reported financial performance or
position. These are complementary measures that are commonly used
in the oil and natural gas industry and by the Company to provide
shareholders and potential investors with additional information
regarding the Company's performance. Below is a description of the
non-GAAP financial measures, non-GAAP ratios, capital management
measures and supplementary financial measures disclosed herein.
Capital expenditures
Capital expenditures is a non-GAAP financial measure that is
calculated as the sum of exploration and evaluation asset
expenditures and property, plant and equipment expenditures
included in the Company's consolidated statements of cash flows and
is most directly comparable to cash used in investing activities.
Touchstone considers capital expenditures to be a useful measure of
its investment in its existing asset base. The following table
presents a historical computation of capital expenditures and
reconciles capital expenditures to cash used in investing
activities for the periods indicated.
($000's) Three months ended Nine months ended
September 30, September 30,
----------------------------------
2023 2022 2023 2022
---------------------------------- ---------- --------- --------- ---------
E&E asset expenditures 3,498 2,692 17,043 7,498
PP&E expenditures 111 207 720 1,323
---------------------------------- ---------- --------- --------- ---------
Capital expenditures 3,609 2,899 17,763 8,821
Abandonment fund expenditures 131 26 253 85
Proceeds from asset dispositions - (11) (250) (146)
Net change in non-cash
working capital 1,090 (824) 978 5,982
---------------------------------- ---------- --------- --------- ---------
Cash used in investing
activities 4,830 2,090 18,744 14,742
---------------------------------- ---------- --------- --------- ---------
Net debt
Management monitors net debt as part of the Company's capital
structure to evaluate its true debt and liquidity position and to
manage capital and liquidity risk. Net debt is a capital management
measure calculated by summing the Company's working capital and the
principal (undiscounted) long-term amount of senior secured debt
and is most directly comparable to total liabilities disclosed in
the Company's consolidated balance sheets. Working capital is
calculated by subtracting current liabilities from current assets
as they appear on the applicable consolidated balance sheets. The
following table presents historical working capital and net debt
computations for the periods indicated.
($000's) September December
30, 31,
2023 2022
Current assets (17,370) (26,415)
Current liabilities 30,789 21,423
------------------------------------------ ----------- ----------
Working capital deficit (surplus) 13,419 (4,992)
Principal long-term balance of bank debt 16,500 21,000
------------------------------------------ ----------- ----------
Net debt 29,919 16,008
------------------------------------------ ----------- ----------
The following table reconciles total liabilities to net debt for
the historical periods indicated.
($000's) September December
30, 31,
2023 2022
Total liabilities 73,832 69,497
Lease liabilities (1,662) (1,373)
Other liabilities - -
Decommissioning liabilities (11,594) (11,182)
Deferred income tax liability (13,318) (14,557)
Variance of carrying value and principal
value of bank debt 31 38
Current assets (17,370) (26,415)
------------------------------------------ ----------- ----------
Net debt 29,919 16,008
------------------------------------------ ----------- ----------
Net debt to funds flow from operations ratio
The Company monitors its capital structure using a net debt to
funds flow from operations ratio, which is a non-GAAP financial
ratio and a capital management measure calculated as the ratio of
the Company's net debt to trailing twelve months funds flow from
operations for any given period. The following table is a
calculation of the Company's projected net debt to annual funds
flow from operations ratio disclosed herein.
December
31,
2024 Guidance
----------------------------------------- ---- ----------------
Net debt(1)(2) ($000's) 25,000
Annual funds flow from operations(1)(2)
($000's) 32,000
----------------------------------------------- ----------------
Net debt to funds flow from operations 0.78 times
ratio
----------------------------------------------- ----------------
Notes:
(1) Forward-looking statement representing Management estimates.
Additional information regarding the assumptions used are provided
in the "Advisories - Assumptions for 2024 Guidance" section
herein.
(2) The financial performance measures included in the Company's
2024 preliminary guidance are based on the midpoint of the average
production forecast.
Supplementary Financial Measures
Realized commodity price per boe - is comprised of petroleum and
natural gas sales as determined in accordance with IFRS, divided by
the Company's total production volumes for the period.
Royalties as a percentage of petroleum and natural gas sales -
is comprised of royalties as determined in accordance with IFRS,
divided by petroleum and natural gas sales as determined in
accordance with IFRS.
Operating expenses per boe - is comprised of operating expenses
as determined in accordance with IFRS, divided by the Company's
total production volumes for the period.
General and administration expenses per boe - is comprised of
general and administration expenses as determined in accordance
with IFRS, divided by the Company's total production volumes for
the period.
Cash finance expenses per boe - is comprised of cash finance
expenses, divided by the Company's total production volumes for the
period. Cash finance expenses are calculated as net finance
expenses as determined in accordance with IFRS, less accretion on
decommissioning obligations, which are non-cash in nature.
Current income tax expense per boe - is comprised of current
income tax expenses as determined in accordance with IFRS, divided
by the Company's total production volumes for the period.
For further information, please refer to the "Advisories -
Non-GAAP Financial Measures" section of the Company's most recent
Management's discussion and analysis for the three and nine months
ended September 30, 2023 available on SEDAR+ ( www.sedarplus.ca )
and on the Company's website ( www.touchstoneexploration.com ),
which includes further discussion of the purpose and composition of
the specified non-GAAP financial measures consistently used by the
Company and detailed reconciliations to the most directly
comparable GAAP measures.
Product Type Disclosures
In this announcement, references to "crude oil" refer to "light
crude oil and medium crude oil" and "heavy crude oil" combined
product types; references to "NGLs" refer to condensate; and
references to "natural gas" refer to the "conventional natural gas"
product type, as such terms are defined in National Instrument
51-101 Standards of Disclosure for Oil and Gas Activities ("NI
51-101"). References to "crude oil and liquids" herein include
crude oil and NGLs.
For information regarding historical production product
disclosures in accordance with NI 51-101, please refer to the
"Advisories - Product Type Disclosures" section in the Company's
most recent Management's discussion and analysis for the three and
nine months ended September 30, 2023 available on SEDAR+ (
www.sedarplus.ca ) and on the Company's website (
www.touchstoneexploration.com ) .
Oil and Natural Gas Measures
Where applicable, natural gas has been converted to barrels of
oil equivalent (boe) based on six thousand cubic feet (Mcf) to one
barrel (bbl) of oil. The barrel of oil equivalent rate is based on
an energy equivalent conversion method primarily applicable at the
burner tip and given that the value ratio based on the current
price of crude oil as compared to natural gas is significantly
different than the energy equivalency of the 6:1 conversion ratio,
utilizing the 6:1 conversion ratio may be misleading as an
indication of value. This conversion factor is an industry accepted
norm and is not based on either energy content or prices.
Assumptions for 2024 Guidance
The significant assumptions used in the forecast of average
daily production, funds flow from operations and net debt are
summarized below. These key performance measures are based on the
midpoint of 2024 average production guidance of 9,400 boe/d.
The 2024 budget is contingent on the Company increasing the
revolving component of its credit facility from $7 million to $20
million in the first quarter of 2024. Although advanced discussions
have commenced, there can be no certainty that the Company will be
able to increase its current credit capacity at all, or in the
quantum and time frame contemplated by Management. Accordingly, the
2024 budget and preliminary guidance disclosed herein may be
subject to change, and such changes may be material.
Production estimates contained herein are expressed as
anticipated average production over the calendar 2024 year. All
production volumes disclosed herein are based on Company working
interest before royalty burdens. In determining anticipated 2024
production, Touchstone considered historical drilling, completion,
production results and decline rates for prior years and considered
the estimated impact on production of the Company's 2024 expected
drilling and completion activities.
Touchstone expects that approximately 12 percent of its midpoint
average production guidance will be comprised of crude oil, 6
percent NGLs, and 82 percent conventional natural gas. See the
"Advisories - Product Type Disclosures" section herein for further
information.
Annual Financial Guidance (1) Units Year ending
December 31,
2024
------------------------------------------- ------- --------------
Realized commodity price(2) $/boe 23.10
Expenses
Royalties as a % of petroleum and natural
gas sales(2) % 20
Operating expenses(2) $/boe 3.50
General and administration expenses(2) $/boe 3.10
Cash finance expenses(2) $/boe 1.00
Current income tax expenses(2) $/boe 1.80
Note:
(1) The financial performance measures included in the Company's
2024 preliminary guidance are based on the midpoint of the average
production forecast.
(2) Non-GAAP financial measure. See the "Advisories - Non-GAAP
Financial Measures" section herein for further information.
Changes in the Company's available bank debt capacity,
variations in forecasted crude oil and liquids prices, differences
in the amount and timing of capital expenditures, and variances in
average production estimates and decline rates can have a
significant impact on the key performance measures included in the
guidance disclosed herein. The actual results of the Company's
operations and the resulting financial results will vary from the
amounts set forth in this announcement and such variations may be
material.
Using the midpoint of the Company's production guidance and
holding all other assumptions constant, a $5/bbl increase
(decrease) in the forecasted average Brent crude oil price for 2024
would increase funds flow from operations by approximately $1.2
million (decrease by $1.2 million). Assuming capital expenditures
are unchanged, the impact on funds flow from operations is
estimated to result in an equivalent decrease (increase) in
forecasted year end 2024 net debt.
Abbreviations
The following abbreviations referenced in this announcement have
the meanings set forth below:
bbls/d barrels per day
Mbbls thousand barrels
boe barrels of oil equivalent
boe/d barrels of oil equivalent per day
Mcf thousand cubic feet
Mcf/d thousand cubic feet per day
MMcf million cubic feet
MMcf/d million cubic feet per day
NGLs natural gas liquids
([1]) Forward-looking statement representing Management
estimates. Additional information regarding the assumptions used
are provided in the "2024 Guidance Summary" and "Advisories -
Assumptions for 2024 Guidance" sections herein.
([2]) Non-GAAP financial measure. See the "Advisories - Non-GAAP
Financial Measures" section herein for additional information on
the definitions and calculation of these measures.
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(END) Dow Jones Newswires
December 19, 2023 02:00 ET (07:00 GMT)
Touchstone Exploration (LSE:TXP)
過去 株価チャート
から 4 2024 まで 5 2024
Touchstone Exploration (LSE:TXP)
過去 株価チャート
から 5 2023 まで 5 2024