(Alliance News) - Touchstone Exploration Inc shares dropped on Tuesday following the release of its 2024 budget guidance.
Shares in Touchstone were down 16% at 47.00 pence each in London on Tuesday morning.
The Canadian-based oil and gas exploration company focused on Trinidad and Tobago said that is plans to invest approximately USD33 million of capital in 2024. This will be directed towards the group's Cascadura field and Coho assets, at 42% and 38% respectively. The remainder will go towards "legacy oil properties, exploration licence payments and corporate infrastructure," the group said.
Touchstone said it was in "advanced discussions" with its existing lenders to increase the current debt capacity to facilitate this expenditure.
The company said that the budget contemplates increasing the revolving component of its credit facility from USD7 million to USD20 million in the first quarter of 2024.
For 2024, Touchstone plans on drilling six wells, which will result in daily average production of between 9,100 and 9,700 barrels of oil equivalent. If correct, this would be more than double Touchstone's forecasted 2023 average production.
Using a midpoint forecasted average production of 9,400 boepd and a Brent benchmark of USD75.00 per barrel, Touchstone estimates USD32.0 million of funds flow from operations.
President and Chief Executive Officer Paul Baay said: "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."
By Hugh Cameron, Alliance News reporter
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Touchstone Exploration (TXP)