Touchstone Exploration Announces Notable Changes in 2023 Year-End Reserves

Touchstone Exploration Inc. disclosed its year-end reserves for 2023, revealing significant adjustments stemming from the company’s operational achievements and strategic decisions over the year. The independent reserves evaluation, carried out by GLJ Ltd. as of December 31, 2023, highlights the initial transition of Cascadura production base into the proved developed producing (PDP) reserves category following the commencement of production from Cascadura-1ST1 and Cascadura Deep-1 wells.

The report showcased a diverse impact across different reserves categories, with PDP reserves experiencing a notable increase by 180 percent to 13,547 Mboe. In contrast, 1P, 2P, and 3P reserves saw reductions by 12, 10, and 10 percent respectively. These changes reflect not only the addition of Cascadura property reserves but also the removal of eight proved undeveloped (PUD) locations, adjustments in natural gas liquids yields at Cascadura, and increased production volumes in 2023 amidst a limited development capital program. Moreover, the net present value of future net revenues (NPV10) observed mixed results, with a significant 142 percent increase in PDP before-tax NPV10, despite decreases in 1P, 2P, and 3P NPV10 values.

Touchstone’s operations in 2023, notably in the Cascadura field, marked substantial progress with the field contributing to considerable natural gas and liquids production. This has evidently contributed to the reported reserves adjustments and underlines Touchstone’s ongoing strategic development within its asset portfolio.