• Resources
  • Blog
  • Journalists
  • Webcasts
  • Data Privacy
  • Français
  • my CNW 
    • Login
    • Register
  • Client Login 
    • Online Member Centre
    • Next Gen Communications Cloud
    • Cision Communications Cloud®
  • Sign Up
  • Send a Release
Cision Canada
  • News
  • Products
    • Overview
    • Cision Communications Cloud®
    • Monitoring
    • Distribution
    • Multimedia
    • Measurement & Analytics
    • IR
  • Contact
    • Become a Client
    • Request a Demo
    • Editorial Bureaus
    • Partnerships
    • General Enquiries
    • Media
    • Worldwide Offices

 

When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
Advanced Search
    Advanced Search
  • News in Focus
      • Browse News Releases

      • All News Releases
      • All Public Company
      • News Releases Overview

      • Multimedia Gallery

      • All Multimedia
      • All Photos
      • All Videos
      • Multimedia Gallery Overview

      • Trending Topics

      • All Trending Topics
  • Business
      • Auto & Transportation

      • All Automotive & Transportation
      • Aerospace, Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads and Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking and Road Transportation
      • Auto & Transportation Overview

      • View All Auto & Transportation

      • Business Technology

      • All Business Technology
      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors
      • Business Technology Overview

      • View All Business Technology

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Financial Services & Investing

      • All Financial Services & Investing
      • Accounting News & Issues
      • Acquisitions, Mergers and Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalization
      • Sales Reports
      • Shareholder Activism
      • Shareholder Meetings
      • Stock Offering
      • Stock Split
      • Venture Capital
      • Financial Services & Investing Overview

      • View All Financial Services & Investing

      • General Business

      • All General Business
      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Environmental, Social and Governance (ESG)
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls and Research
      • Trade Show News
      • General Business Overview

      • View All General Business

  • Science & Tech
      • Consumer Technology

      • All Consumer Technology
      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications
      • Consumer Technology Overview

      • View All Consumer Technology

      • Energy & Natural Resources

      • All Energy
      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil and Gas Discoveries
      • Utilities
      • Water Utilities
      • Energy & Natural Resources Overview

      • View All Energy & Natural Resources

      • Environ­ment

      • All Environ­ment
      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters
      • Environ­ment Overview

      • View All Environ­ment

      • Heavy Industry & Manufacturing

      • All Heavy Industry & Manufacturing
      • Aerospace & Defense
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation and Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking and Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco
      • Heavy Industry & Manufacturing Overview

      • View All Heavy Industry & Manufacturing

      • Telecomm­unications

      • All Telecomm­unications
      • Carriers and Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications
      • Telecomm­unications Overview

      • View All Telecomm­unications

  • Lifestyle & Health
      • Consumer Products & Retail

      • All Consumer Products & Retail
      • Animals & Pets
      • Beers, Wines and Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics and Personal Care
      • Fashion
      • Food & Beverages
      • Furniture and Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewelry
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys
      • Consumer Products & Retail Overview

      • View All Consumer Products & Retail

      • Entertain­ment & Media

      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • Entertain­ment & Media Overview

      • View All Entertain­ment & Media

      • Health

      • All Health
      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine
      • Health Overview

      • View All Health

      • Sports

      • All Sports
      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories
      • Sports Overview

      • View All Sports

      • Travel

      • All Travel
      • Amusement Parks and Tourist Attractions
      • Gambling & Casinos
      • Hotels and Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry
      • Travel Overview

      • View All Travel

  • Policy & Public Interest
      • Policy & Public Interest

      • All Policy & Public Interest
      • Advocacy Group Opinion
      • Animal Welfare
      • Canadian Federal Government
      • Canadian Municipal Government
      • Canadian Provincial Government
      • Corporate Social Responsibility
      • Domestic Policy
      • Economic News, Trends, Analysis
      • Education
      • Environmental
      • European Government
      • FDA Approval
      • Federal and State Legislation
      • Federal Executive Branch & Agency
      • Foreign Policy & International Affairs
      • Homeland Security
      • Labor & Union
      • Legal Issues
      • Natural Disasters
      • Not For Profit
      • Patent Law
      • Public Safety
      • Trade Policy
      • Policy & Public Interest Overview

      • View All Policy & Public Interest

  • People & Culture
      • People & Culture

      • All People & Culture
      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Diversity, Equity & Inclusion
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women
      • People & Culture Overview

      • View All People & Culture

  • Overview
  • Cision Communications Cloud®
  • Monitoring
  • Distribution
  • Multimedia
  • Measurement & Analytics
  • IR
  • Become a Client
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • General Enquiries
  • Media
  • Worldwide Offices
  • Cision Canada
  • Send a Release
  • FR
    • Phone

    • 877-269-7890 from 8 AM - 10 PM ET

    • ALL CONTACT INFO
    • Contact Cision

      877-269-7890
      from 8 AM - 10 PM ET

  • Send a Release
  • Sign Up
  • Resources
  • Blog
  • Journalists
  • Webcasts
  • GDPR
  • News in Focus
    • Browse All News
    • Multimedia Gallery
    • Trending Topics
  • Business
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
  • Policy & Public Interest
    • Policy & Public Interest
  • People & Culture
    • People & Culture
  • Send a Release
  • Sign Up
  • Resources
  • Blog
  • Journalists
  • Webcasts
  • GDPR
  • Overview
  • Cision Communications Cloud®
  • Monitoring
  • Distribution
  • Multimedia
  • Measurement & Analytics
  • IR
  • Send a Release
  • Sign Up
  • Resources
  • Blog
  • Journalists
  • Webcasts
  • GDPR
  • Become a Client
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • General Enquiries
  • Media
  • Worldwide Offices
  • Send a Release
  • Sign Up
  • Resources
  • Blog
  • Journalists
  • Webcasts
  • GDPR

Touchstone Announces 2018 Year-end Reserves

Touchstone Exploration Inc. (CNW Group/Touchstone Exploration Inc.)

News provided by

Touchstone Exploration Inc.

Mar 07, 2019, 02:00 ET

Share this article

Share this article


CALGARY, March 7, 2019 /CNW/ - Touchstone Exploration Inc. ("Touchstone" or the "Company") (TSX / LSE: TXP) announces the results of its independent reserves evaluation as at December 31, 2018. Reserve numbers provided herein were derived from an independent reserves report (the "Reserves Report") prepared by GLJ Petroleum Consultants Ltd. ("GLJ") effective December 31, 2018.

All currency amounts are in United States dollars ("US$") unless otherwise stated.

The financial information contained herein is based on the Company's unaudited expected results for the year ended December 31, 2018 and is subject to change. 

2018 Year-end Reserve Report Highlights

  • Increased proved ("1P") reserves by 5% to 11,222 Mbbl and increased proved plus probable ("2P") reserves by 4% to 19,275 Mbbl from the prior year.
  • Replaced 2018 annual production by 178% on a 1P reserves basis and 218% on a 2P reserves basis.
  • Realized an after tax 1P 10% discounted net present value of future net revenues ("NPV") of $79.8 million, an increase of $12.1 million or 18% from the prior year.
  • Achieved an after tax 2P 10% discounted NPV of $145.4 million, representing an increase of 14% from $127.4 million in 2017.
  • Future development costs ("FDC") associated with only a portion of our internally identified drilling location inventory and portfolio of low risk recompletion projects totaled $46.0 million for 1P reserves and $68.6 million for 2P reserves.
  • Realized 1P finding, development and acquisition ("FD&A") costs of $12.71 per barrel, resulting in a 2.2 times recycle ratio using our unaudited annual 2018 operating netback of $27.34 per barrel.
  • Achieved 2P FD&A costs of $10.85 per barrel. Using the unaudited annual 2018 estimated operating netback, the 2P FD&A recycle ratio was 2.5 times.
  • The Reserves Report included only those reserves associated with our development properties and did not include our previously announced estimated resources associated with our Ortoire exploration block prospects.

James Shipka, Chief Operating Officer, commented:

"The updated reserves evaluation validated our strong base production and reflected the results of our successful 2018 development drilling campaign. Solid 2018 reserves growth was achieved from our low decline production base and drilling success. Capital efficiencies seen in our low finding and development costs and strong recycle ratios support our belief in organic growth through the drill bit complemented by low cost recompletions."

2018 Year-end Reserves Report Summary

Touchstone's year-end crude reserves in Trinidad were evaluated by independent reserves evaluator GLJ in accordance with definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook and National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). Additional reserves information as required under NI 51-101 will be included in the Company's Annual Information Form, which will be filed on SEDAR on or before March 31, 2019. The reserve estimates set forth below are based upon GLJ's Reserve Report dated March 6, 2019 with an effective date of December 31, 2018. All values in this news release are based on GLJ's forecast prices and estimates of future operating and capital costs as at December 31, 2018. In certain tables set forth below, the columns may not add due to rounding.

Summary of Gross Oil Reserves as of December 31, 2018 by Product Type(1),(2)

Reserves Category



Light and

Medium Oil

(Mbbl)

Heavy Oil

(Mbbl)

Total Oil

Equivalent

(Mbbl)







Proved






Developed Producing



4,719

461

5,180

Developed Non-Producing



1,482

217

1,699

Undeveloped



3,785

558

4,343

Total Proved



9,986

1,236

11,222







Probable



7,298

755

8,053

Total Proved plus Probable



17,284

1,991

19,275







Possible



5,564

611

6,265

Total Proved plus Probable plus Possible


22,938

2,602

25,540


Notes:

(1)

Gross Reserves are the Company's working interest share of the remaining reserves before deduction of any royalties.

(2)

See "Advisories: Reserve Advisory".

Summary of Net Present Values of Future Net Revenue as of December 31, 2018(1),(2)

Reserves Category

Net Present Values of Future Net Revenues Before Income

Taxes Discounted at (% per year) (US$000's)

0%

5%

10%

15%

20%







Proved






Developed Producing

106,422

76,788

62,572

53,898

47,864

Developed Non-Producing

81,704

59,930

49,142

41,968

36,659

Undeveloped

142,421

106,112

81,816

64,791

52,406

Total Proved

330,548

242,830

193,530

160,657

136,929







Probable

368,384

248,422

184,476

144,523

117,239

Total Proved plus Probable

698,932

491,252

378,006

305,180

254,168







Possible

301,629

175,091

122,301

93,724

75,742

Total Proved plus Probable plus Possible

1,000,561

666,343

500,307

398,904

329,910







Reserves Category

Net Present Values of Future Net Revenues After Income

Taxes(3) Discounted at (% per year) (US$000's)

0%

5%

10%

15%

20%







Proved






Developed Producing

47,110

38,230

33,522

30,365

27,980

Developed Non-Producing

28,537

21,578

18,082

15,759

14,044

Undeveloped

50,922

37,286

28,153

21,742

17,078

Total Proved

126,568

97,093

79,757

67,866

59,102







Probable

129,216

88,061

65,620

51,406

41,636

Total Proved plus Probable

255,784

185,154

145,378

119,272

100,739







Possible

101,777

61,598

43,764

33,833

27,514

Total Proved plus Probable plus Possible

357,561

246,752

189,142

153,105

128,253



Notes:

(1)

Based on GLJ's December 31, 2018 escalated price forecast. See "Summary of Pricing and Inflation Assumptions".

(2)

See "Advisories: Reserve Advisory".

(3)

Income taxes include all resource income, appropriate income tax calculations per current Republic of Trinidad and Tobago tax regulations and estimated December 31, 2018 consolidated tax pools and non-capital losses.

Summary of Pricing and Inflation Assumptions

The following table sets forth the benchmark reference prices and inflation rates reflected in the Reserves Report.

Forecast Year

NYMEX WTI at

Cushing, Oklahoma

(US$/bbl)(1)

Brent Blend FOB

North Sea (US$/bbl)(1)

Inflation Rates

(%/year)(2)





2019

56.25

63.25

0.0

2020

63.00

68.50

2.0

2021

67.00

71.25

2.0

2022

70.00

73.00

2.0

2023

72.50

75.50

2.0

2024

75.00

78.00

2.0

2025

77.50

80.50

2.0

2026

80.41

83.41

2.0

2027

82.02

85.02

2.0

2028

83.66

86.66

2.0

Thereafter

+2.0% / year

+2.0% / year

2.0






Notes:

(1)

This summary table identifies benchmark reference pricing schedules that might apply to a reporting issuer. Product sales prices will reflect these reference prices with further adjustments for quality differentials and transportation to point of sale.

(2)

Inflation rates for forecasting pricing and costs.

Reconciliation of Changes in Gross Reserves(1),(2)

Factors


Total Proved

Reserves (Mbbl)

Total Proved plus

Probable Reserves

(Mbbl)





December 31, 2017


10,733

18,535

Drilling extensions


903

1,283

Infill drilling


-

35

Technical revisions


229

72

Dispositions


(38)

(55)

Economic factors


21

31

Production


(626)

(626)





December 31, 2018


11,222

19,275





Reserves replacement ratio (%)(3)


178

218



Notes:

(1)

Gross Reserves are the Company's working interest share of the remaining reserves before deduction of any royalties. 

(2)

See "Advisories: Reserve Advisory".

(3)

Reserves replacement ratio is calculated as net increase to reserves divided by 2018 average production of 626 Mbbl. See "Advisories: Crude Oil Metrics".

Future Development Costs

The following table provides information regarding the development costs deducted in the estimation of the Company's future net revenue using forecast prices and costs as included in the Reserves Report.  

Year


Proved Reserves

(US$000's)

Proved plus

Probable Reserves

(US$000's)





2019


8,120

10,902

2020


16,211

20,519

2021


12,448

18,764

2022


9,221

18,457

Thereafter


-

-

Total undiscounted


45,999

68,642

Total discounted at 10% per year


38,207

56,188

Reserve Life Index by Reserves Category(1),(2)

The Company reduced its December 31, 2018 gross 2P reserve life index by 12% from year-end 2017 from 20.2 years to 17.7 years. The following table provides the reserve life index by reserves category as included in the Reserves Report.

Reserves Category



Gross

Reserves

Volume

(Mbbl)

Reserve Life

(years)

Reserve

Life Index

(years)







Total Proved



11,222

48.0

11.9

Total Probable



8,053

50.0

57.0

Total Proved plus Probable



19,275

50.0

17.7


Notes:

(1)

Gross Reserves are the Company's working interest share of the remaining reserves before deduction of any royalties. 

(2)

See "Advisories: Crude Oil Metrics".

Estimated Company Gross Reserve Metrics(1)

(US$000's unless otherwise stated)

Total Proved

Reserves

Total Proved plus

Probable Reserves




Exploration capital expenditures(2),(3)

1,419

1,419

Development capital expenditures (2),(3)

13,355

13,355

Proceeds from dispositions

(500)

(500)

Change in future development costs

(104)

553

Estimated FD&A costs(4)

14,170

14,827




Net reserve additions (Mbbl)(4)

1,115

1,366




Estimated FD&A costs per barrel (US$/bbl)(4)

12.71

10.85




Estimated 2018 operating netback (US$/bbl)(2),(5)

27.34

27.34




Estimated 2018 recycle ratio(4)

2.2x

2.5x


Notes:

(1)

Gross Reserves are the Company's working interest share of the remaining reserves before deduction of any royalties. 

(2)

Financial information was converted to US$ based on the Company's preliminary 2018 unaudited financial statements and is therefore subject to audit. See "Advisories: Unaudited Financial Information".

(3)

Exploration and development capital exclude capitalized general and administration costs and corporate asset expenditures. See "Advisories: Crude Oil Metrics".

(4)

See "Advisories: Reserve Advisory" and "Advisories: Crude Oil Metrics".

(5)

See "Non-GAAP Measures".

About Touchstone

Touchstone Exploration Inc. is a Calgary 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".

Advisories

Reserve Advisory

The disclosure in this news release summarizes certain information contained in the Reserves Report but represents only a portion of the disclosure required under NI 51-101. Full disclosure with respect to the Company's reserves as at December 31, 2018 will be contained in the Company's Annual Information Form for the year ended December 31, 2018 which will be filed on SEDAR on or before March 31, 2019.

The recovery and reserve estimates of crude oil reserves provided herein are estimates only, and there is no guarantee that the estimated reserves will be recovered. Actual crude oil reserves may eventually prove to be greater than or less than the estimates provided herein. This news release summarizes the crude oil reserves of the Company and the net present values of future net revenue for such reserves using forecast prices and costs as at December 31, 2018 prior to provision for interest, general and administrative expenses, the impact of any financial derivatives or liabilities associated with the abandonment and reclamation of certain facilities and wells. It should not be assumed that the present worth of estimated future net revenues presented in the tables above represent the fair market value of the reserves. There is no assurance that the forecast prices and costs assumptions will be attained, and variances could be material.

"Proved Developed Producing Reserves" are those reserves that are expected to be recovered from completion intervals open at the time of the estimate. These reserves may be currently producing, or if shut-in, they must have previously been on production, and the date of resumption of production must be known with reasonable certainty.

"Proved Developed Non-Producing Reserves" are those reserves that either have not been on production or have previously been on production but are shut-in, and the date of resumption of production is unknown.

"Proved Undeveloped Reserves" are those reserves expected to be recovered from known accumulations where a significant expenditure (e.g. when compared to the cost of drilling a well) is required to render them capable of production. They must fully meet the requirements of the reserves category (proved, probable, possible) to which they are assigned.

"Proved" reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves.

"Probable" reserves are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves.

"Possible" reserves are those additional reserves that are less certain to be recovered than probable reserves. There is a 10 percent probability that the quantities actually recovered will equal or exceed the sum of proved plus probable plus possible reserves. It is unlikely that the actual remaining quantities recovered will exceed the sum of the estimated proved plus probable plus possible reserves.

In the Reserves Report GLJ forecasted reserve volumes and future cash flows based upon current and historical well performance through to the economic production limit of individual wells. Notwithstanding established precedence and contractual options for the continuation and renewal of the Company's existing operating agreements, in many cases the forecasted economic limit of individual wells is beyond the current term of the relevant operating agreements.

Crude Oil Metrics

This news release contains several oil and gas metrics that are commonly used in the oil and gas industry such as reserves additions, reserves replacement ratio, reserve life index, finding, development and acquisition costs, and recycle ratio. These metrics have been prepared by Management and do not have standardized meanings or standardized methods of calculation and therefore such measures may not be comparable to similar measures presented by other companies and should not be used to make comparisons. Such metrics have been included herein to provide readers with additional measures to evaluate the Company's performance; however, such measures are not reliable indicators of the future performance of the Company, and future performance may not compare to the performance in prior periods and therefore such metrics should not be unduly relied upon. The Company uses these oil and gas metrics for its own performance measurements and to provide shareholders with measures to compare the Company's operations over time. Readers are cautioned that the information provided by these metrics, or that can be derived from the metrics presented herein, should not be relied upon for investment purposes.

Net reserve additions are calculated as the change in reserves from the beginning to the end of the applicable period excluding period production. Reserves replacement ratio is calculated as period net reserve additions divided by period production. Reserve life index is calculated as total Company gross reserves divided by annual production.

FD&A costs represent the costs of net property acquisitions and dispositions, exploration, and development incurred, converted to US$ where applicable. Specifically, FD&A is calculated as the sum of net acquisition costs less proceeds of dispositions, capital expenditures excluding capitalized general and administrative costs and corporate capital expenditures incurred in the period and the change in future development costs required to develop those reserves. The Company's annual audit of its December 31, 2018 consolidated financial statements is not complete. Accordingly, unaudited capital expenditure amounts used in the calculation of FD&A costs are Management's estimate and are subject to change. FD&A costs per barrel is determined by dividing current period net reserve additions to the corresponding period's FD&A cost. The aggregate of the exploration and development costs incurred in the most recent financial year and the change during that year in estimated future development costs generally will not reflect total finding and development costs related to reserves additions for that year.

Recycle ratios are calculated by dividing the annual FD&A costs per barrel to operating netback per barrel prior to realized gains or losses on commodity derivative contracts in the corresponding period (see "Non-GAAP Measures"). Operating netback has been converted to US$ where applicable. The Company's annual audit of its December 31, 2018 consolidated financial statements is not complete. Accordingly, unaudited operating netbacks used in calculations of recycle ratios are Management's estimate and are subject to change. The recycle ratio compares netbacks from existing reserves to the cost of finding new reserves and may not accurately indicate the investment success unless the replacement of reserves are of equivalent quality as the produced reserves.

Unaudited Financial Information

Certain financial information included herein including capital expenditures and operating netback are based on unaudited estimated results. These estimated results are subject to change upon completion of the Company's audited financial statements for the year ended December 31, 2018, and changes could be material.

Non-GAAP Measures

The Company uses operating netback as a key performance indicator of field results. Operating netback does not have a standardized meaning under IFRS and therefore may not be comparable with the calculation of similar measures by other companies. Operating netback is presented on a total and per barrel basis and is calculated by deducting royalties and operating expenses from petroleum sales. Operating netback is presented herein prior to realized gains or losses on commodity derivative contracts. The Company considers operating netback to be a key measure as it demonstrates Touchstone's profitability relative to current commodity prices. This measurement assists Management and investors in evaluating operating results on a historical basis.

Forward-Looking Statements

Certain information provided in this news release may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking information in this news release may include, but is not limited to, statements relating to estimated crude oil reserves and the net present values of future net revenue therefrom, future development costs associated with crude oil reserves, the potential undertaking, timing, locations and costs of future well drilling, and the sufficiency of resources to fund future development operations. 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. Because 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 December 31, 2017 Annual Information Form dated March 26, 2018 which has been filed on SEDAR and can be accessed at www.sedar.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 to update publicly or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.

In addition, statements relating to reserves are by their nature forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated, and can be profitably produced in the future. The recovery and reserve estimates of Touchstone's reserves provided herein are estimates only, and there is no guarantee that the estimated reserves will be recovered. Consequently, actual results may differ materially from those anticipated in the forward-looking statements.

Crude Oil Abbreviations

bbl(s)

barrel(s)

bbls/d

barrels per day

Mbbl

one thousand barrels

SOURCE Touchstone Exploration Inc.

For further information: Mr. Paul Baay, President and Chief Executive Officer; or Mr. James Shipka, Chief Operating Officer, Telephone: 403.750.4487, www.touchstoneexploration.com

Related Links

www.touchstoneexploration.com

Modal title

Organization Profile

Touchstone Exploration Inc.

    Also from this source

  • TOUCHSTONE ANNOUNCES EXPANSION OF CREDIT FACILITY TO US$30 MILLION...

  • TOUCHSTONE ANNOUNCES THIRD TEST RESULTS AT ROYSTON-1 AND EXTENDED ...

  • Touchstone Updates Testing Results for Royston-1 Confirming Light ...

Contact Cision

  • 877-269-7890
    from 8 AM - 10 PM ET

  • Become a Client
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • General Enquiries
  • Media
  • Worldwide Offices

Products

  • Cision Communications Cloud®
  • Media Monitoring
  • Content Distribution
  • Multimedia Distribution
  • Measurement & Analytics
  • Investor Relations

About

  • About Cision Canada
  • About Cision
  • Media Partners
  • Careers
  • Accessibility Statement

My Services

  • All News Releases
  • Online Member Centre
  • Next Gen Communications Cloud
  • Cision Communications Cloud®
  • my CNW

Contact Cision

Products

About

My Services
  • All News Releases
  • Online Member Centre
  • Next Gen Communications Cloud
  • Cision Communications Cloud
  • my CNW
877-269-7890
from 8 AM - 10 PM ET
  • Terms of Use
  • Information Security Policy
  • Site Map
  • Cookie Settings
  • Accessibility Statement
Copyright © 2022 CNW Group Ltd. All Rights Reserved. A Cision company.