Touchstone Exploration Inc. Announces Management Changes; Announces Financial and Operating Results for the Second Quarter and Six Months Ended June 30, 2014; Announces Production Results for the Month of July 2014
Aug 14 14
Touchstone Exploration Inc. announced that Mr. Todd Brown has resigned as Chief Operating Officer effective August 8, 2014. Mr. James Shipka, Vice President Geosciences and Business Development, will serve as Interim Chief Operating Officer until a suitable replacement has been found. In addition, Mr. Dwight Mervold, Vice President Operations will assume additional duties throughout the transition period.
The company announced financial and operating results for the second quarter and six months ended June 30, 2014. Production for the three months ended June 30, 2014 was 1,220 barrels per day (100% oil), compared to 191 barrels per day a year ago. Trinidad production contributed 830 barrels per day, as the operations averaged 1,574 barrels per day over the 48 day post acquisition period within the quarter. Canadian production remained consistent on a quarter-over-quarter basis and increased 104% from the comparative 2013 period.
Production for the six months ended June 30, 2014 was 807 barrels per day (100% oil), compared to 217 barrels per day a year ago.
For the second quarter of 2014, negative funds flow from operations were CAD 4,007,000 or CAD 0.07 per share basic and diluted, compared to CAD 2,114,000 or CAD 0.04 per share basic and diluted in the previous quarter and CAD 1,777,000 or CAD 0.04 per share basic and diluted in the comparative 2013 quarter. Canadian exploration asset expenditures were CAD 2,425,000 in the quarter versus CAD 5,811,000 in the previous quarter. Trinidad exploration expenditures were CAD 764,000, which represented the company's 16.2% working interest share of the drilling of a well on the Cory Moruga property. Trinidad petroleum sales were CAD 7,861,000. Corporate net income was CAD 2,751,000 or CAD 0.05 per basic and diluted share compared to net loss of CAD 4,151,000 or CAD 0.09 per basic and diluted share a year ago. Exploration asset expenditures were CAD 3,189,000 compared to CAD 3,050,000 a year ago. Property and equipment expenditures were CAD 7,797,000 compared to CAD 73,000 a year ago.
For the six months, Trinidad petroleum sales were CAD 7,861,000. Corporate net loss was CAD 1,216,000 or CAD 0.02 per basic and diluted share compared to CAD 7,159,000 or CAD 0.15 per basic and diluted share a year ago. Negative corporate funds flow from operations were CAD 6,121,000 or CAD 0.11 per basic and diluted share compared to CAD 4,469,000 or CAD 0.09 per basic and diluted share a year ago. Exploration asset expenditures were CAD 9,000,000 compared to CAD 11,472,000 a year ago. Property and equipment expenditures were CAD 7,816,000 compared to CAD 124,000 a year ago.
The company achieved July production of 2,340 average barrels per day of which 1,795 barrels per day was Trinidad based and 545 barrels per day was from Canadian operations.
Touchstone Exploration Inc. Provides Operations Update for the Month of June and for the First 13 Days of July 2014
Jul 16 14
Touchstone Exploration Inc. provided operations update for the first 13 days of July 2014. The company has achieved average field estimated production for the first 13 days of July of 2,275 barrels per day; 1,769 barrels per day in Trinidad and 506 barrels per day in Canada. The company has drilled and cased four (3.16 net) wells in Trinidad. To date the company has successfully drilled four (3.16 net) wells in total. Two (2.0 net) wells were drilled on the Forest Reserve WD-8 Block, one (1.0 net) well on the Grand Ravine WD-4 Block, and one (0.16 net) well on the Cory Moruga Block. The two wells on the WD-8 property were drilled to total measured depths of approximately 4,000 feet. The first well (FR-1747) encountered 302 feet of net oil pay of which 170 feet is in the Lower Forest formation, 55 feet in the Upper Cruse, 18 feet in the Middle Cruse and 59 feet in the Lower Cruse formation. The well will initially be competed in the Lower Cruse formation. The second well (FR-1748) encountered in excess of 280 feet of net oil pay in the shallow section, of which 110 feet is in the Lower Forest, 85 feet in the Upper Cruse, and 85 feet in the Middle Cruse formation. Additional oil pay in the deeper Lower Cruse section will be quantified following cased hole logging operations. The well on the WD-4 property (PS-579) was drilled to a total depth of 6,800 feet. The well encountered 585 feet of net oil pay of which 231 feet is in the Upper Forest formation, 313 feet in the Lower Forest formation and 41 feet in the Upper Cruse formation. The Cory Moruga (16.2% non-operated working interest) well successfully reached its targeted total depth of approximately 6,600 feet. Testing and completion programs are currently being drafted by the contract operator for execution in the near future. With these results, the company remains on pace to complete the intended 21.3 well drilling program in 2014.
During June, the Kerrobert property produced approximately 410 barrels of oil per day. The company has undergone a cost-cutting strategy at the property to improve field netbacks. As a result, second quarter operating results for the property are expected to break even as the Company has reduced air injection costs and the associated operating expenses. In the second quarter the company continued operations on a CSS pilot project in the Bluesky formation at Dawson with two (2.0 net) wells being placed on production in early June. These wells were switched over to oil production following six months of steam injection and are in the early stages of production. As modeled, initial recovery was predominantly water, however oil cuts have rapidly increased in both operated wells and the company achieved a combined June 30, 2014 field estimated exit rate of approximately 110 barrels of oil per day. The company will continue to monitor the results of this initial CSS production cycle and will continue future development planning for the Dawson property based on the results of the pilot.