In an exclusive presentation by Touchstone Exploration (LSE:TXP), President and CEO Paul Baay discusses the company’s 2017 final results and ongoing operations. Since the start of 2018 Touchstone has achieved average production of 1650 bopd, a significant increase on the 1375 bopd average for 2017. With its ten well drill programme underway, the company is well on the way to hitting its 2,000bopd target for the year by August. There is much to look forward to for Touchstone, as Baay explains.
In the presentation, Baay talks about Touchstone’s future potential growth including its 10-year plan and hopes to become a 5,000bopd producer by 2020. He describes the potential at East Brighton and also the sizeable Ortoire Block, which the company is yet to start drilling on.
Touchstone was cashflow positive to the tune of $3.1m in 2017 and Baay believes this could increase significantly as production is increased. Touchstone has already drilled one of ten new wells scheduled this year and is about to engage a second rig to expedite its campaign.
The company’s 2018 drilling campaign is fully funded, and Baay goes on to suggest that further expansion could be funded from cashflow moving forward. The CEO anticipates that cashflow generated during Q4 2018 could be the equivalent of the combined amounts generated during Q1, Q2 and Q3. Taking all this into account and Touchstone has the potential to strive forward at pace under its own steam in 2019, as it looks to develop the rest of its portfolio and 208 identified drill locations on Trinidad and Tobago.
