Touchstone Exploration Inc on Wednesday reported that production rose in its third quarter, but reduced full-year guidance as it eyes a lower Brent crude price.

Shares in Touchstone were trading 6.5% lower at 32.50 pence each in London on Wednesday afternoon.

The Trinidad & Tobago-focused oil exploration company said that daily production averaged 5,211 barrels of oil equivalent per day in its third quarter, up 54% on-year from 3,391 boepd.

Realised petroleum and natural gas sales totalled $13.3 million for the quarter, up 13% on-year from $11.7 million. Funds flow from operations rose 24% to $3.0 million from $2.4 million, and net earnings rose 87% to $1.8 million.

Touchstone also held net debt of $29.6 million at September 30, down slightly from $29.9 million one year prior.

For the nine months to September 30, average daily production doubled to 5,883 boepd from 2,457 boepd the year before.

Petroleum and natural gas sales rose 61% to $43.9 million, and net earnings doubled to $8.8 million. Funds flow from operations surged to $13.1 million from $3.2 million.

However, Touchstone announced reductions to its full-year guidance mainly due to delays affecting the Cascadura field, an onshore natural gas discovery in Trinidad.

Touchstone said that in the third quarter it faced delays in work on the Cascadura C well pad and the Cascadura B well site.

It also had originally planned for drilling two development wells from the Cascadura B pad in the fourth quarter, but the necessary bridge construction was stymied by ‘inclement weather’. Production should now be commencing in 2025.

Additionally, due to delayed first production and updates to the type curves and commodity types for Cascadura-2ST1 and Cascadura-3ST1, Touchstone has lowered the midpoint of its full-year production guidance 5,900 boepd from 8,000 boepd.

For 2024, Touchstone said it now expects average daily production of between 5,600 and 6,200 boepd, down from the previous guidance range of 7,700 to 8.300 boepd.

Touchstone also expects the average Brent crude oil price to reach $80.00 per barrel, down from previously forecast $82.00.

Because of the revised average mid-point production forecast and oil price, Touchstone said it now anticipates generating around $17 million in funds flow from operations. This was down from previous guidance of $28 million.

Finally, the company expects net debt of around $32.0 million at year end, up 14% from previous guidance of $28.0 million.

‘Our primary near-term strategy is to increase cash flow through the development of the Cascadura field’, Touchstone added.

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