(Alliance News) - Touchstone Exploration Inc on Friday said its reserves were higher at the end of 2019 following discoveries at the Ortoire exploration block in Trinidad.
Touchstone's proved plus probable reserves on December 31 totalled 22.1 million barrels of oil equivalent, up from 19.3 million barrels equivalent at the end of 2018, a rise of 15%. Proved reserves were 5.3% higher at 11.8 million barrels equivalent compared to 11.2 million barrels year-on-year.
Touchstone Chief Operating Officer James Shipka said: "The company's independent 2019 reserves evaluation reflected the strong performance of our base production and included the first reserves associated with our discoveries on the Ortoire exploration block. With gross working interest [proved and probable] reserves of over 20 [billion cubic feet] (approximately 3.4 million [barrels of oil equivalent]) assigned at Coho, the company has exceeded the best estimates of the recoverable gas in the pool compared to the independent evaluation report prepared for the company in the prior year.
"With the second stage of the production test at Cascadura-1ST1 expected to commence this weekend, we look forward to updating our shareholders on this material discovery and the impact it will have on corporate reserves."
The company, which has its headquarters in Calgary, Canada, said the realised after tax proved 10% discounted net present value of its future net revenue was USD83.7 million, rising 4.9% from USD79.8 million at the end of 2018.
Meanwhile the after tax proved and probable 10% discounted net present value of its future net revenue was USD153.9 million, rising 5.8% from USD145.4 million.
Proved resource finding, development and acquisition costs came to USD7.74 per barrel of oil equivalent for a recycle ratio of 3.4 times given its annual 2019 operating netback of USD26.62 per barrel equivalent. The prior year's proved resource finding, development and acquisition costs were higher at USD12.72 per barrel, a 2.2 times recycle ratio given its 2018 operating netback of USD27.34 per barrel.
Future development capital came to USD45.4 million for proved reserves and USD71.7 million for proved and probable reserves. The year before, future development costs were USD46.0 million for proved reserves and USD68.6 million for proved and probable reserves.
Shares in Touchstone were down 0.7% at 36.75 pence in London on Friday.
By Anna Farley; annafarley@alliancenews.com
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Touchstone Exploration (TXP)