CALGARY, AB / ACCESSWIRE / March 24, 2023 / Touchstone Exploration Inc. ("Touchstone", "we", "our", "us" or the "Company") (TSX:TXP)(LSE:TXP) reports its operating and financial results for the three months and year ended December 31, 2022. Selected information is outlined below and should be read in conjunction with our December 31, 2022 audited consolidated financial statements, the related Management's discussion and analysis and our December 31, 2022 Annual Information Form, all of which will be available under our profile on SEDAR (www.sedar.com) and on our website (www.touchstoneexploration.com). Unless otherwise stated, all financial amounts herein are rounded to thousands of United States dollars.
Fourth Quarter 2022 Financial and Operating Highlights
Annual 2022 Financial and Operating Highlights
Financial and Operating Results Summary
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Average daily production
Crude oil and liquids (bbls/d)
Natural gas(1) (Mcf/d)
Average daily production (boe/d)(2)
Average realized prices(3)
Crude oil and liquids ($/bbl)
Natural gas(1) ($/Mcf)
Realized commodity price ($/boe)(2)
Production mix (% of production)
Crude oil and liquids
Operating netback ($/boe)(2)
Realized commodity price(3)
($000's except per share amounts)
Petroleum and natural gas sales
Cash (used in) from operating activities
Funds flow from operations(3)
Net (loss) earnings
Per share - basic and diluted
Exploration capital expenditures
Development capital expenditures
Working capital surplus(3)
Principal long-term bank loan
Net debt(3) - end of period
Share Information (000's)
Weighted average shares - basic
Weighted average shares - diluted
Outstanding shares - end of period
Touchstone Exploration Inc.
Touchstone Exploration Inc. is a Calgary, Alberta 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. The Company's common shares are traded on the Toronto Stock Exchange and the AIM market of the London Stock Exchange under the symbol "TXP".
For further information about Touchstone, please visit our website at www.touchstoneexploration.com or contact:
Mr. Paul Baay, President and Chief Executive Officer
Mr. Scott Budau, Chief Financial Officer
Mr. James Shipka, Chief Operating Officer
Certain information provided in this news release may constitute forward-looking statements and information (collectively, "forward-looking statements") within the meaning of applicable securities laws. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to assumptions, risks and uncertainties, many of which are beyond the control of the Company. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or are events or conditions that "will", "would", "may", "could" or "should" occur or be achieved. The forward-looking statements contained in this news release speak only as of the date thereof and are expressly qualified by this cautionary statement.
Specifically, this news release includes, but is not limited to, forward-looking statements relating to the Company's development and exploration plans and strategies, including Cascadura facility construction operations and the expected timing of completion and initial production therefrom, as well as the timing of anticipated Royston-1X well completion and testing operations; the anticipated closing of the asset exchange transaction, including the anticipated future receipt and timing of regulatory approvals including the required licence extension and the timing thereof; and Touchstone's current and future financial position including the sufficiency of resources to fund future capital expenditures and maintain financial liquidity.
Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. Certain of these risks are set out in more detail in the Company's 2022 Annual Information Form dated March 23, 2023 which will be available under the Company's profile on SEDAR (www.sedar.com) and on the Company's website (www.touchstoneexploration.com). The forward-looking statements contained in this news release are made as of the date hereof, and except as may be required by applicable securities laws, the Company assumes no obligation or intent to update publicly or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.
Non-GAAP Financial Measures
This news release may reference various non-GAAP financial measures, non-GAAP ratios, capital management measures and supplementary financial measures as such terms are defined in National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure. Such measures are not recognized measures under GAAP and do not have a standardized meaning prescribed by International Financial Reporting Standards ("IFRS" or "GAAP") and therefore may not be comparable to similar financial measures disclosed by other issuers. Readers are cautioned that the non-GAAP financial measures referred to herein should not be construed as alternatives to, or more meaningful than, measures prescribed by IFRS, and they are not meant to enhance the Company's reported financial performance or position. These are complementary measures that are commonly used in the oil and natural gas industry and by the Company to provide shareholders and potential investors with additional information regarding the Company's performance. Below is a description of the non-GAAP financial measures, non-GAAP ratios, capital management measures and supplementary financial measures disclosed in this news release.
Funds flow from operations
Funds flow from operations is included in the Company's consolidated statements of cash flows. Touchstone considers funds flow from operations to be a key measure of operating performance as it demonstrates the Company's ability to generate the funds necessary to finance capital expenditures and repay debt. Management believes that by excluding the temporary impact of changes in non-cash operating working capital, funds flow from operations provides a useful measure of the Company's ability to generate cash that is not subject to short-term movements in non-cash operating working capital.
Touchstone uses operating netback as a key performance indicator of field results. The Company considers operating netback to be a key measure as it demonstrates Touchstone's profitability relative to current commodity prices and assists Management and investors with evaluating operating results on a historical basis. Operating netback is a non-GAAP financial measure calculated by deducting royalties and operating expenses from petroleum and natural gas sales. The most directly comparable financial measure to operating netback disclosed in the Company's consolidated financial statements is petroleum and natural gas revenue net of royalties. Operating netback per boe is a non-GAAP ratio calculated by dividing the operating netback by total production volumes for the period. Presenting operating netback on a per boe basis allows Management to better analyze performance against prior periods on a comparable basis.
Capital expenditures is a non-GAAP financial measure that is calculated as the sum of exploration and evaluation asset expenditures and property, plant and equipment expenditures included in the Company's consolidated statements of cash flows and is most directly comparable to cash used in investing activities. Touchstone considers capital expenditures to be a useful measure of its investment in its existing asset base.
Working capital and net debt
Touchstone closely monitors its capital structure with a goal of maintaining a strong financial position to fund current operations and future growth. Working capital and net debt are capital management measures used by Management to steward the Company's overall debt position and assess overall financial strength. Working capital is calculated as current assets minus current liabilities as they appear on the consolidated balance sheets. Net debt is calculated by summing the Company's working capital and the principal (undiscounted) long-term amount of senior secured debt.
Supplementary Financial Measures
Realized commodity price per boe - is comprised of petroleum and natural gas sales as determined in accordance with IFRS, divided by the Company's total production volumes for the period.
Royalties per boe - is comprised of royalties as determined in accordance with IFRS, divided by the Company's total production volumes for the period.
Operating expenses per boe - is comprised of operating expenses as determined in accordance with IFRS, divided by the Company's total production volumes for the period.
For information regarding such measures, including reconciliations to the nearest GAAP measures, please refer to the "Advisories - Non-GAAP Financial Measures" section in the Company's Management's discussion and analysis for the year ended December 31, 2022 accompanying our 2022 audited consolidated financial statements which are available on our website (www.touchstoneexploration.com) and under our SEDAR profile (www.sedar.com).
Oil and Natural Gas Measures
Where applicable, natural gas has been converted to barrels of oil equivalent based on six thousand cubic feet to one barrel of oil. The barrel of oil equivalent rate is based on an energy equivalent conversion method primarily applicable at the burner tip, and given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different than the energy equivalency of the 6:1 conversion ratio, utilizing the 6:1 conversion ratio may be misleading as an indication of value.
Product Type Disclosures
This news release includes references to crude oil, NGLs, natural gas, total production and average daily production. Under NI 51-101, disclosure of production volumes should include segmentation by product type as defined in the instrument. In this news release, references to "crude oil" refers to "light crude oil and medium crude oil" and "heavy crude oil" combined product types; references to "NGLs" refers to condensate; and references to "natural gas" refers to the "conventional natural gas" product type, all as defined in the instrument.
The Company's total and average production for the three months and years ended December 31, 2022 and 2021 and the references to "crude oil", "NGLs" and "natural gas" disclosed herein consist of the following product types as defined in NI 51-101 using a conversion of 6 Mcf to 1 boe where applicable.
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Light and medium crude oil (bbls)
Heavy crude oil (bbls)
Crude oil (bbls)
NGLs - condensate (bbls)
Conventional natural gas (Mcf)
Total production (boe)
Average daily production
Light and medium crude oil (bbls/d)
Heavy crude oil (bbls/d)
Crude oil (bbls/d)
NGLs - condensate (bbls/d)
Conventional natural gas (Mcf/d)
Average daily production (boe/d)
bbls/d barrels per day
boe barrels of oil equivalent
boe/d barrels of oil equivalent per day
Mcf thousand cubic feet
Mcf/d thousand cubic feet per day
NGLs natural gas liquids
SOURCE: Touchstone Exploration, Inc.