Touchstone Exploration has announced 2023 year-end reserves.
Touchstone's independent reserves evaluation was prepared by GLJ Ltd with an effective date of December 31, 2023. Highlights of our total proved developed producing ('PDP'), total proved ('1P'), total proved plus probable ('2P') and total proved plus probable plus possible ('3P') reserves from the Reserves Report are provided in the full announcement (see link below). Unless otherwise stated, all financial amounts referenced herein are stated in United States dollars. Financial information contained herein is based on the Company's unaudited results for the year ended December 31, 2023 and is subject to change.
Touchstone's 2023 year-end reserves reflect the initial transition of our Cascadura production base into the PDP reserves category as we brought onstream the first two Cascadura wells, Cascadura-1ST1 and Cascadura Deep-1. In addition to successfully constructing and commissioning the Cascadura natural gas and liquids facility in 2023, we also prepared for our Cascadura C delineation and development program.
In 2023 we achieved initial production from our Cascadura field which produced net volumes of 37.4 MMcf/d of natural gas and 622 bbls/d of natural gas liquids in the fourth quarter of 2023, contributing to corporate average quarterly net production volumes of 8,504 boe/d and average 2023 annual net production volumes of 3,981 boe/d.
2023 Year-end Reserves Report Highlights
- Relative to year-end 2022 and after 2023 production, we increased gross PDP reserves by 180 percent to 13,547 Mboe, decreased gross 1P reserves by 12 percent to 33,696 Mboe, decreased gross 2P reserves by 10 percent to 67,379 Mboe and decreased gross 3P reserves by 10 percent to 108,859 Mboe in 2023.
- PDP reserves replaced 2023 annual production by 699 percent, reflecting Cascadura-1ST1 and Cascadura Deep-1 natural gas and associated liquids volumes that were brought online in 2023.
- With the addition of Cascadura property reserves, PDP reserves represent 40 percent of 1P reserves, reflecting an attractive ratio of base production to low risk proved undeveloped ("PUD") drilling targets.
- Reductions in our 1P, 2P, and 3P year-end reserves balances from 2022 reflected the removal of eight PUD locations on our non-core legacy crude oil blocks and Royston, technical revisions to the natural gas liquids yields at Cascadura, increased annual production volumes in 2023 and a limited 2023 development capital program.
- Our net present value of future net revenues discounted at 10 percent ("NPV10") on a before tax PDP basis increased by 142 percent to $151.4 million, decreased by 30 percent to $372.5 million on a 1P basis, decreased by 27 percent to $730.1 million on a 2P basis, and decreased by 29 percent to $1.05 billion on a 3P basis from the prior year.
- Realized after tax PDP NPV10 of $99.8 million representing an increase of 93 percent from the prior year, after tax 1P NPV10 decreased by 25 percent from year-end 2022 to $191.4 million, after tax 2P NPV10 decreased by 24 percent from the prior year to $342.5 million and after tax 3P NPV10 decreased by 26 percent from 2022 to $482.6 million.
- We continue to maintain a long producing reserve life index of 7.9 years 1P and 14.4 years 2P, reflecting the low decline nature of our asset base.
- The Cascadura-2 well was drilled subsequent to the effective date of the Reserves Report and will be reflected in our future reserve evaluations.
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Source: Touchstone Exploration
