02:00 Wed 14 Nov 2018
Touchstone Explrtn. - THIRD QUARTER 2018 RESULTS
THIRD QUARTER 2018 RESULTS
Third Quarter Highlights
· Achieved average crude oil production of 1,758 barrels per day ("bbls/d"), representing an increase of 22% from the third quarter of 2017.
· Continued our 2018 development program with total drilling and development capital expenditures of
· Realized
· Generated an operating netback of
· Delivered funds flow from operations of
· Recognized net earnings of
· Exited the quarter with net debt of
Financial and Operating Results Summary
|
Three months ended |
% change |
Nine months ended |
% change |
|
||
|
2018 |
2017 |
2018 |
2017 |
|
||
|
|
|
|
|
|
|
|
Operating |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average daily oil production (bbls/d) |
1,758 |
1,437 |
22 |
1,674 |
1,351 |
24 |
|
|
|
|
|
|
|
|
|
Net wells drilled |
3 |
1 |
200 |
8 |
4 |
100 |
|
Net wells recompleted |
12 |
3 |
300 |
21 |
13 |
62 |
|
|
|
|
|
|
|
|
|
Brent benchmark price (US$/bbl) |
75.10 |
52.10 |
44 |
72.15 |
51.75 |
39 |
|
|
|
|
|
|
|
|
|
Operating netback(1) ($/bbl) |
|
|
|
|
|
|
|
Realized sales price |
79.71 |
59.64 |
34 |
78.32 |
61.58 |
27 |
|
Royalties |
(20.52) |
(14.59) |
41 |
(21.46) |
(17.07) |
26 |
|
Operating expenses |
(22.06) |
(20.59) |
7 |
(20.46) |
(21.81) |
(6) |
|
|
37.13 |
24.46 |
52 |
36.40 |
22.70 |
60 |
|
|
|
|
|
|
|
|
|
Financial ( |
|
|
|
|
|||
|
|
|
|
|
|
|
|
Petroleum sales |
12,890 |
7,885 |
63 |
35,782 |
22,712 |
58 |
|
|
|
|
|
|
|
|
|
Funds flow from operations |
3,260 |
1,387 |
135 |
9,119 |
2,218 |
311 |
|
Per share - basic(1) |
0.03 |
0.01 |
200 |
0.07 |
0.02 |
250 |
|
Per share - diluted(1) |
0.02 |
0.01 |
100 |
0.07 |
0.02 |
250 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) |
267 |
(1,203) |
n/a |
(300) |
(4,600) |
n/a |
|
Per share - basic and diluted |
0.00 |
(0.01) |
n/a |
(0.00) |
(0.05) |
n/a |
|
|
|
|
|
|
|
|
|
Capital expenditures |
|
|
|
|
|
|
|
Exploration |
578 |
202 |
186 |
1,240 |
910 |
36 |
|
Development |
4,543 |
1,889 |
140 |
12,684 |
7,375 |
72 |
|
|
5,121 |
2,091 |
145 |
13,924 |
8,285 |
68 |
|
|
|
|
|
|
|
|
|
Net debt(1) - end of period |
|
|
|
|
|
|
|
Working capital surplus |
|
|
|
(2,025) |
(402) |
|
|
Principal long-term balance of loan |
|
|
|
15,000 |
15,000 |
|
|
|
|
|
|
12,975 |
14,598 |
(11) |
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding (000's) |
|
|
|
|
|
||
Basic |
129,021 |
103,137 |
25 |
129,021 |
90,243 |
43 |
|
Diluted |
130,728 |
103,137 |
27 |
129,021 |
90,243 |
43 |
|
Outstanding shares - end of period (000's) |
|
|
129,021 |
103,137 |
25 |
||
|
|
|
|
|
|
|
|
Note:
(1) See "Advisories: Non-GAAP Measures".
Operating Results
In the third quarter we continued with our expanded 2018 drilling campaign by successfully drilling three wells, bringing the total to eight development wells drilled through
Third quarter 2018 crude oil production averaged 1,758 bbls/d, a 22% increase relative to the 1,437 bbls/d produced in the third quarter of 2017. Third quarter average daily production increased 2% from the second quarter of 2018, with growth slowed by weather based electrical supply disruptions and higher than normal crude oil inventory held at
The eight wells drilled in 2018 combined to add approximately 249 bbls/d of incremental production in the third quarter, despite two new wells beginning to produce in mid-August and one well initiating production at the end of September. The four wells drilled in 2017 continued to perform above internal expectations, contributing approximately 351 bbls/d of production in the quarter.
Financial Results
Our third quarter operating netback was
We generated funds flow from operations of
We maintained stable financial liquidity, exiting the quarter with positive working capital of
Operations
Touchstone delivered
We spud the ninth well of our 2018 drilling program on
We previously planned on utilizing a separate rig to drill two shallow work commitment wells on our South
The
On
The Company has been officially informed that Petrotrin will continue to meet its contractual operations and commitments throughout the transition process. Petrotrin has indicated that it will be meeting with all pertinent stakeholders following completion of the restructuring to discuss future changes and opportunities.
We do not expect the restructuring to impact our current crude oil production and marketing arrangements and future operations. We believe our crude oil will continue to be purchased by Petrotrin and consolidated with all
For further information, please contact:
Mr.
Mr.
Mr.
Shore Capital (Nominated Advisor and Joint Broker)
Nominated Advisor:
Corporate Broking:
GMP FirstEnergy (Joint Broker)
Camarco (Financial PR)
Nick Hennis / Jane Glover / Billy Clegg Tel: +44 (0) 203 757 4980
About Touchstone
Advisories
Non-GAAP Measures
This announcement contains terms commonly used in the oil and natural gas industry, including funds flow from operations per share, operating netback and net debt. These terms do not have a standardized meaning under International Financial Reporting Standards and may not be comparable to similar measures presented by other companies. Shareholders and investors are cautioned that these measures should not be construed as alternatives to cash provided by operating activities, net income, total liabilities, or other measures of financial performance as determined in accordance with Generally Accepted Accounting Principles. Management uses these Non-GAAP measures for its own performance measurement and to provide stakeholders with measures to compare the Company's operations over time.
The Company calculates funds flow from operations per share by dividing funds flow from operations by the weighted average number of common shares outstanding during the applicable period.
The Company uses operating netback as a key performance indicator of field results. Operating netback is presented on an absolute and per barrel basis and is calculated by deducting royalties and operating expenses from petroleum sales. If applicable, the Company also discloses operating netback both prior to realized gains or losses on derivatives and after the impacts of derivatives are included. Realized gains or losses represent the portion of risk management contracts that have settled in cash during the period, and disclosing this impact provides Management and investors with transparent measures that reflect how the Company's risk management program can impact netback metrics. The Company considers operating netback to be a key measure as it demonstrates Touchstone's profitability relative to current commodity prices.
The Company closely monitors its capital structure with a goal of maintaining a strong financial position in order to fund current operations and the future growth of the Company. The Company monitors working capital and net debt as part of its capital structure to assess its true debt and liquidity position and to manage capital and liquidity risk. Net debt is calculated by summing the Company's working capital and the principal (undiscounted) amount of long-term debt. Working capital is calculated as current assets less current liabilities as they appear on the statements of financial position.
Forward-Looking Statements
Certain information provided in this announcement may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking information in this announcement may include, but is not limited to, statements relating to field estimated production, Petrotrin's restructuring plans, timing thereof, and the effect on the Company's operating and marketing agreements and future operations, the potential undertaking, timing, locations and costs of future well drilling and completion activities, and the sufficiency of resources to fund future well drilling operations. 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
This information is provided by RNS, the news service of the
The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of...
FOR OUR FULL DISCLAIMER CLICK HERE