Touchstone Exploration Reports Strong Start to 2024 with Onstream Success from Cascadura Field

Touchstone Exploration Inc. announced positive financial and operational results for the first quarter of 2024, marking significant progress driven by the Cascadura field. Since coming online in September 2023, Cascadura has notably enhanced the company's financial standing and operational capabilities, contributing approximately $20 million in operating netbacks.

However, the company observed steeper initial decline rates at Cascadura than anticipated, presenting challenges that are now well understood for optimized extraction going forward. Despite these declines, Touchstone maintains its 2024 full-year guidance, expecting a substantial production boost in Q4.

Touchstone also disclosed a strategic all-share acquisition agreement with Trinity Exploration and Production Plc, expected to drive growth through increased production capacity and provide more flexibility in capital programs.

For Q1 2024, Touchstone reached a production level of 7,015 boe/d, showing a decrease compared to the prior quarter but a substantial increase year-over-year. Realized petroleum and natural gas sales amounted to $16.58 million with operating netbacks of $10.46 million, reflecting a 24% drop from Q4 2023. The quarter saw $11.96 million in capital investments focused on development and infrastructure needed for Cascadura and other operations.

These results signify Touchstone's strategic progress and operational resilience despite natural production declines and market challenges. The company expects to continue its growth trajectory following the potential acquisition and further development of existing assets.