Touchstone Exploration has announced the results of its independent reserves evaluation as at December 31, 2018. Reserve numbers provided herein were derived from an independent reserves report prepared by GLJ Petroleum Consultants 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.'