Production and Oil Prices
Touchstone achieved a fourth quarter 2016 production average of 1,245 barrels of oil per day (“bopd”), 2% below the third quarter 2016 average of 1,276 bopd. Touchstone’s fourth quarter realized oil price was approximately US$46.22 (representing 94% of the average Brent oil price of $49.11 per barrel), as compared with the third quarter 2016 average oil price of US$40.24 (representing 88% of the average Brent oil price of US$45.80).
In December 2016, Touchstone completed an eight well recompletion program focused on increasing production from standing or underperforming wells in a variety of the Company’s operated fields. The program included suspending existing deeper zones in individual wellbores and perforating bypassed uphole hydrocarbon charged sands. The eight well program was completed in 30 days at an estimated cost of CAD$510,000. For the first 20 days of January 2017, the eight wells averaged a combined estimated production rate of 130 bopd. Touchstone’s estimated field production through January 20, 2017 was 1,351 bopd. The Company has two additional wells that will be brought on stream during the next 10 days.
Paul Baay, President and Chief Executive Officer said, “The performance of our December 2016 recompletion program supports management’s plans of using low cost recompletions to assist in replacing decline volumes. With compelling metrics of under $4,000 per flowing barrel, the Company will look to continue performing recompletions on a go forward basis.” Touchstone is targeting two well recompletions per month through 2017.
Updated Corporate Presentation
Touchstone is pleased to announce that the Company will be presenting at the Trinidad and Tobago Energy Conference, hosted by the Energy Chamber of Trinidad and Tobago on January 23rd and 24th, 2017 in Port of Spain, Trinidad. President and Chief Executive Officer, Paul Baay, will be presenting a corporate update which will include a new Corporate Presentation that will be available on the Company’s website. Chief Operating Officer, James Shipka, will be presenting as part of a panel discussion on Enhanced Oil Recovery opportunities in Trinidad; while this presentation will not be specific to the Company’s operations, a copy of the presentation will be available upon request. Touchstone will also be participating with other operators in affirming their support of local benefits initiatives as lead by the Energy Chamber of Trinidad and Tobago.
Touchstone Exploration Inc. is a Calgary based company engaged in the business of acquiring interests in petroleum and natural gas rights, and the exploration, development, production and sale of petroleum and natural gas. Touchstone is currently active in onshore properties located in the Republic of Trinidad and Tobago. Touchstone is one of the largest independent onshore oil producers in Trinidad, with assets in several large, high-quality reservoirs that have significant estimated total petroleum initially-in-place and an extensive inventory of low-risk development opportunities. The Company currently has interests in over 59,000 working interest acres of exploration and development rights on 22 properties, 11 of which are currently producing. The Company’s common shares are traded on the Toronto Stock Exchange under the symbol “TXP”.