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Touchstone Exploration Inc on Friday said annual profit fell despite revenue increasing, as total expenses multiplied. The Calgary, Canada-based oil and gas company focused on Trinidad & Tobago said 2022 pretax profit plunged 90% to $1.5 million from $14.5 million in 2021, despite revenue climbing 39% to $28.3 million from $20.4 million. This was because total expenses multiplied to $26.9 million from $5.8 million. Most significantly within this, Touchstone took an impairment of $195,000 in 2022, swung from a impairment reversal of $13.7 million in 2021. Operating expenses were up 23% to $9.0 million from $7.3 million. General and administration expenses rose 24% to $7.8 million from $6.3 million. Net finance costs doubled to $3.0 million from $1.4 million. Within operations, Touchstone highlighted achieving initial natural gas production from its Coho-1 well in the fourth quarter, producing average net volumes of 5.7 million cubic feet per day or 955 barrels of oil equivalent per day in the fourth quarter. In 2023 so far, net average natural gas volumes from Coho-1 were 900 and 864 barrels of oil equivalent per day in January and February respectively. Overall, Touchstone produced fourth quarter average volumes of 2,229 barrels of oil equivalent per day, up 67% from 1,336 barrels of oil equivalent per day a year earlier. Looking ahead, Touchstone said it expects to begin production testing at its Royston-1X sidetrack well on the Ortoire block by the end of March, after safely reaching the budgeted total depth of the well in last month. It remains on track to complete its Cascadura gas facility, after the National Gas Co of Trinidad & Tobago Ltd said it expected to receive first natural gas from the facility on or around June 30. Shares in Touchstone were up 3.5% to 63.12 pence each in London on Friday morning. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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