Touchstone Exploration Inc (LON:TXP, CVE:TXP) has reported on what it described as a “transformational” year for the Caribbean oil firm.
In the year, the company produced an average of 1,375 barrels of crude oil per day which marked a 6% increase from the preceding year.
Petroleum revenues increased 33% for the year, at US$32.02mln from the US$24.03mln reported for 2016. The realised net back on production improved by 50% to average US$22.56 per barrel, up from US$15.08.
It generated US$3.11mln of funds from operations, compared to US$6.11mln in 2016 (which benefited by financial derivative gains of US$6.46mln).Touchstone narrowed its net loss significantly, reported at US$947,000 versus the US$12.85mln net loss in the previous year.
The company reduced its debt exposure by 42% and it ended the year with US$13.92mln of cash, following a US$5.32mln raise through share placings in the UK.
“This year has been transformational for Touchstone based on our successful listing on the London AIM market in June 2017 and the completion of a fundraising in December to finance our 2018 ten well drilling campaign,” said Paul Baay, Touchstone chief executive.
“This programme combined with an encouraging set of 2017 drilling results, has placed the company in an excellent position to achieve our near-term production target of 2,000 barrels per day, as current production is 1,654 barrels per day."
Baay said: "The company is in a healthy financial position, increasing cash and reducing net debt during 2017. We look forward to updating the market in due course as we build upon the strong platform that we established over the past year."