Despite accepting Opposition Leader Dr Keith Rowley’s offer to head his legal team for the impending lawsuit to be filed by Prime Minister Kamla Persad-Bissessar, former attorney general Ramesh Law
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Touchstone turns loss into profit but needs money for T&T programme
Touchstone Exploration Inc, a Toronto-listed company which derives more than 60 per cent of its daily production from T&T, yesterday announced a second quarter (Q2) net income of CA$2.75 million. The profit, which works out to CA$0.05 per basic and diluted share (after it merged with Petrobank) contrasts with the loss of CA$3.97 million recorded in Q1 2014, and the loss of CA$4.15 million in Q2 2013.
On May 13, Petrobank Energy and Resources Ltd completed a court-approved statutory plan of arrangement of the acquisition of Touchstone Exploration Inc (Old Touchstone). “Production for the three months ended June 30, 2014 was 1,220 barrels per day (100 per cent oil). Trinidad production contributed 830 barrels per day, as the operations averaged 1,574 barrels per day over the 48 day post acquisition period within the quarter. Canadian production remained consistent on a quarter-over-quarter basis and increased 104 per cent from the comparative 2013 period,” Touchstone said.
The company said it has “commenced the 2014 Trinidad drilling programme and participated in drilling four wells” and added that it “generated Trinidad adjusted funds flow from operations of CA$1.74 million or CA$23.08 per barrel in the quarter as adjusted for non-recurring operating costs of CA$1.28 million; and achieved July production of 2,340 average barrels per day of which 1,795 barrels per day was Trinidad based and 545 barrels per day was from Canadian operations.” Old Touchstone was engaged in the exploration, development and production of oil in T&T. At the acquisition date, the acquired assets included approximately 1,600 barrels per day of existing oil production from 10,205 working interest acres of developed land and approximately 50,000 working interest acres of undeveloped land in Trinidad.
“The producing assets are characterized by large oil in place, low declines and an extensive inventory of low risk drilling, workover and reactivation opportunities. The integration of the operations allows the company to execute an expanded capital program in Trinidad and positions the company to increase shareholder value through improved netbacks, increased cash flow, and superior capital efficiencies. The company will leverage the application of proven Western Canadian production technologies to the large defined Trinidad resource base,” Touchstone said.
Trinidad property and equipment expenditures were CA$7.79 million in Q2 2014. This included CA$5.2 million in drilling and completion costs, mainly for the three wells drilled throughout the quarter. The company also purchased a new service rig for CA$2.1 million.
As at June 30, the Trinidad equipment fleet included four service rigs and one coil tubing unit, Touchstone said. Working capital surplus at the end of Q2 was CA$9.73 million compared to CA$41.98 million in the previous quarter. Working capital decreased as the company paid CA$24.28 million in long-term debt and related interest acquired from the Old Touchstone acquisition. The company also recorded a combined CA$10.99 million in capital expenditures throughout the quarter. “The company continues working toward a new operating credit facility to facilitate its expanded capital programme in Trinidad,” the release said. Touchstone expects to have a minimum of two non-operated drilling rigs in service for the remainder of the year. The company is based in Calgary, Canada, and is active in onshore properties located in T&T and western Canada.