Touchstone Announces Third Quarter Financial Results and Operational Update
(firmenpresse) - CALGARY, ALBERTA -- (Marketwired) -- 08/28/13 -- Touchstone Exploration Inc. (the "Company") (TSX VENTURE: TAB) is pleased to report its financial and operating results for the three and nine months ended June 30, 2013. All values in this news release are in thousands United States dollars unless otherwise stated. Highlights for the three and nine month period ended June 30, 2013 are noted below.
The quarter reflected a challenging period of production for the Company as a number of issues adversely affected short-term production volumes. The three main items impacting production were the installation and testing of downhole sand screens, the decreased run time of the Company's coil tubing unit and the difficulties encountered with the drilling of a well on the WD-8 block. Despite these, the Company was still able to achieve positive funds flow from operations and net earnings in the quarter. The Company is currently taking measures to remediate these production challenges.
The Company employed sand screen technology that initially was successful in preventing the encroachment of sand in low producing wells. During the quarter the Company applied this technology to its higher productivity wells which ultimately reduced wellbore inflow. The Company is reviewing the application and currently restoring original production on the affected wells.
During the quarter the Company experienced a number of mechanical issues with its coil tubing unit, resulting in extended downtime. As the Company has found that the unit is instrumental in mitigating sand buildup and keeping wells consistently on production, the Company has purchased additional equipment inventory and is currently sourcing two new units to add to its fleet prior to the end of the calendar year. These units are anticipated to be funded by cash flows from operations.
The Company drilled four wells during the quarter, three on its Fyzabad block and one on its WD-8 property. The three Fyzabad wells were successfully drilled and placed on production subsequent to quarter-end. The fourth well drilled on WD-8 encountered a high pressure reservoir which forced the Company to abandon drilling. However, the Company was able to successfully perforate the well in a shallow zone, which ultimately identified a number of low risk opportunities for the future.
The Company has now resumed its drilling program that will include the drilling of two Coora wells, followed by additional drilling on the WD-8 and WD-4 blocks.
Financial Statements
Below is selected financial statement information as at and for the three and nine months ended June 30, 2013 with 2012 comparative data which should be read in conjunction with the Company's audited consolidated financial statements and the related Management's, Discussion and Analysis for the year ended September 30, 2012 and the
Company's unaudited consolidated financial statements and the related Management's, Discussion and Analysis for the three and nine month period ended June 30, 2013, available at the the Company's website () or on the Canadian System for Electronic Document Analysis and Retrieval ("SEDAR") website ().
Touchstone Exploration Inc. is 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 internationally. The Company is currently active in onshore properties located in the Republic of Trinidad and Tobago. The Company's common shares are traded on the Toronto Venture Exchange under the symbol "TAB". Please see the latest corporate presentation on the Touchstone Exploration Inc. website at .
The companies in which Touchstone Exploration Inc. directly own are separate entities. In this news release "Touchstone" or the "Company" are sometimes used for convenience where references are made to Touchstone Exploration Inc. and its subsidiaries in general.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
READER ADVISORY
Forward-looking Statements
The information herein contains forward-looking statements and assumptions. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and other similar expressions. Statements relating to "reserves" and "resources" are deemed to be forward looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves and resources described exist in the quantities predicted or estimated, and can be profitably produced in the future. Such statements represent the Company's internal projections, estimates or beliefs concerning future growth, results of operations based on information currently available to the Company based on assumptions that are subject to change and are beyond the Company's control, such as: production rates and production decline rates, the magnitude of and ability to recover oil and gas reserves, plans for and results of drilling activity, well abandonment costs and salvage value, the ability to secure necessary personnel, equipment and services, environmental matters, future commodity prices, changes to prevailing regulatory, royalty, tax and environmental laws and regulations, the impact of competition, future capital and other expenditures (including the amount, nature and sources of funding thereof), future financing sources, business prospects and opportunities, among other things. By their nature, forward-looking statements are subject to numerous known and unknown risks and uncertainties that could significantly affect anticipated results in the future and accordingly, actual results may differ materially from those predicted. Although the Company's management believes that the expectations and assumptions reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievement since such expectations and assumptions are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies.
The Company is exposed to numerous operational, technical, financial and regulatory risks and uncertainties, many of which are beyond its control and may significantly affect anticipated future results. Operations may be unsuccessful or delayed as a result of competition for services, supplies and equipment, mechanical and technical difficulties, ability to attract and retain qualified employees on a cost-effective basis, commodity and marketing risk and seasonality. The Company is subject to significant drilling risks and uncertainties including the ability to find oil reserves on an economic basis and the potential for technical problems that could lead to well blowouts and environmental damage. The Company is exposed to risks relating to the inability to obtain timely regulatory approvals, surface access, and access to third party gathering and processing facilities, transportation and other third party related operation risks. The Company is exposed to risks related to recent acquisitions including unforeseen difficulties in integrating acquired companies, properties, personnel and infrastructure into the Company's operations; the outcome of litigation brought against the Company or acquired companies or other disputes involving the Company or any acquired companies; or the failure generally to realize the anticipated benefits of such acquisitions. The Company is subject to industry conditions including changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced. There are uncertainties in estimating the Company's reserve base due to the complexities in estimated future production, costs and timing of expenses and future capital. The financial risks the Company is exposed to include, but are not limited to, the impact of general economic conditions in Canada and the Republic of Trinidad and Tobago, the ability to access sufficient capital from internal and external sources, changes in income tax laws or changes in tax laws, royalties and incentive programs relating to the oil and gas industry, fluctuations in natural gas and crude oil prices, interest rates, the U.S./Canadian dollar exchange rate and the U.S/Trinidad and Tobago dollar exchange rate. The Company is subject to regulatory legislation, the compliance with which may require significant expenditures and non-compliance with which may result in fines, penalties or production restrictions or the termination of licence, lease operating or farm-in rights related to the Company's oil and gas interests in Trinidad and Tobago.
Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and as such, undue reliance should not be placed on forward-looking statements. Readers are also cautioned that the foregoing list of factors and assumptions is not exhaustive. The Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. Additional information on these and other factors that could affect the Company's operations and financial results are included elsewhere herein and in reports, documents and disclosures on file with Canadian securities regulatory authorities and may be accessed on SEDAR.
Non-GAAP Measures
This press release contains terms commonly used in the oil and gas industry, such as funds flow from operations, funds flow from operations per share, total debt, operating netback and funds flow netback. These terms do not have a standardized meaning under International Financial Reporting Standards ("IFRS") and may not be comparable to similar measures presented by other companies.
Funds flow from operations represents cash flow from operating activities before changes in non-cash working capital. Management believes that in addition to net earnings and cash flows from operating activities, funds flow from operations is a useful financial measurement which assists in demonstrating the Company's ability to fund capital expenditures necessary for future growth or to repay debt. The Company calculates funds flow from operations per share by dividing funds flow from operations by the weighted average number of basic and dilutive common shares outstanding during the period.
The Company uses funds flow netbacks as a key performance indicator of results. Funds flow netbacks do not have a standardized meaning under IFRS and therefore may not be comparable with the calculation of similar measures by other companies. Funds flow netbacks are presented on a per barrel basis and are calculated by deducting royalties, operating expenses, general and administrative expenses, transaction costs, finance expenses excluding non-cash items and current income tax expenses from petroleum sales. Funds flow netbacks are a useful measure to compare the Company's operations with those of its peers.
The Company also uses operating netbacks as a key performance indicator of field results. Operating netbacks do not have a standardized meaning under IFRS and therefore may not be comparable with the calculation of similar measures by other companies. Operating netbacks are presented on a per barrel basis and are calculated by deducting royalties and operating expenses from petroleum sales. Operating netbacks are a useful measure to compare the Company's operations with those of its peers.
Total debt is calculated by summing the Company's current and long-term portions of interest bearing instruments (not including derivative instruments). The Company uses this information to assess its true debt position and manage capital risk. The Company's determination of total debt may not be comparable to that reported by other companies.
Contacts:
Touchstone Exploration Inc.
Mr. Paul R. Baay
Chairman & Chief Executive Officer
(403) 992-8407
(403) 514-0383 (FAX)
Macam Investor Relations
Cameron MacDonald
President & Chief Executive Officer
(403) 452-6600
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Datum: 28.08.2013 - 13:15 Uhr
Sprache: Deutsch
News-ID 291685
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contact information:
Town:
CALGARY, ALBERTA
Kategorie:
Oil & Gas
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