Touchstone Exploration Inc on Tuesday lowered guidance for the year while reporting strong financial performance in the second quarter on the back of increased production.

The Calgary, Canada-based oil & gas exploration and development company said comprehensive income multiplied to $3.5 million in the second quarter that ended June 30 from $136,000 the previous year.

Revenue jumped 96% to $14.1 million from $7.2 million, while operating expenses increased 33% to $7.1 million from $5.3 million.

Average daily production nearly trebled to 5,432 from 1,827 barrels of oil equivalent per day.

Touchstone’s cash balance fell 31% to $7.0 million from $10.1 million with net debt reducing 0.8% to $28.7 million from $28.9 million.

Chief Executive Officer Paul Baay said: ‘The second quarter has been particularly productive, marked by our efforts to optimize production, enhance processing capacity, and tie in our new wells to the Cascadura natural gas facility...Following our drilling program in the first half of the year, we remain on track to achieve initial production from the two Cascadura wells by the end of September.’

Touchstone revised its guidance for the year due to the Cascadura field experiencing higher than expected production declines.

2024 average production is now expected to be within the range of 7,700 to 8,300 boe/d down from previous guidance of 9,100 to 9,700 boe/d.

Post-period the company entered into exploration and production licences for the Charuma and Cipero onshore blocks where it maintains an 80% operating interest in each licence.

Touchstone Exploration shares were down 2.4% to 30.49 pence each in London on Tuesday afternoon.

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