#Touchstone Exploration Highlights Reserves Growth
Touchstone Exploration recently announced encouraging figures from its 2019 reserves evaluation, showcasing significant increases in both 1P and 2P reserves. Prepared by GLJ Petroleum Consultants, the report illustrates a 6% rise in 1P reserves, now totaling 11,840 million barrels of oil equivalent (MBOE), and a 14% increase in 2P reserves, reaching 22,056 MBOE.
#Production and Discovery Insights
The firm has significantly outperformed its annual production levels, replacing production by 193% on a 1P basis and 519% on a 2P basis. This impressive efficiency contributes to a realized after-tax net present value (NPV(10)) of $83.7 million for 1P reserves, which reflects a $4 million increase from the previous year. Additionally, the 2P NPV(10) stands at $153.9 million, marking a 6% year-on-year growth.
These results include the first reserves linked to the discoveries made in the Ortoire block, particularly the Coho discovery from December, which indicates potential production rates of 1,667 to 2,000 barrels of oil per day (boe/d). However, the evaluation does not yet account for the recently identified Cascadura discovery.
#Cascadura Well Testing Reveals High Production Potential
Recent testing at the Cascadura well yielded significant results, with an average flow rate of 5,180 barrels of oil equivalent per day (Boe/d). This performance confirms the presence of a substantial, liquids-rich natural gas resource, which is expected to positively impact future production capabilities.
In context, Touchstone's average oil production during the three quarters ending September 30, 2019, was approximately 1,729 barrels per day (bbls/d), underscoring the remarkable potential represented by the latest discoveries.
#Market Response and Strategic Plans
Investor confidence has noticeably increased, reflected in a 7.3% rise in Touchstone's share price since the beginning of the year. This positive momentum comes on the heels of strong appraisal reports and successful testing results.
To capitalize on these advancements, the company recently raised £9 million aimed at accelerating its efforts at the Ortoire block. This funding will support the drilling of additional exploration wells and further testing at Cascadura, enhancing production capacity and overall reserves.
#Key Takeaways
- Touchstone Exploration reports a 6% increase in 1P and a 14% rise in 2P reserves for 2019.
- Production replacement rates significantly exceeded annual output levels, indicating operational efficiency.
- Recent testing at the Cascadura well showed an average flow rate of 5,180 Boe/d, highlighting substantial gas production potential.
- The company raised £9 million to fund further exploration and testing at key sites.
- Touchstone’s share price has risen 7.3% in 2020, reflecting enhanced investor confidence.
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