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CALGARY, ALBERTA -- (Marketwire) -- 02/28/13 -- Touchstone Exploration Inc. (TSX VENTURE: TAB) (the "Company") reported its financial and reserves results for the three months ended December 31, 2012. All values in this news release are in United States dollars unless otherwise stated.
Highlights for the first quarter ended December 31, 2012 are noted below:
-- Achieved average quarterly oil production of 1,549 barrels per day, 14 percent higher than the preceding quarter and 67 percent greater than the corresponding 2012 quarter.-- First quarter 2013 funds flow from operations increased from $134,341 ($0.00 per share) in the first quarter of 2012 to $3,122,717 ($0.03 per share).-- Drilled three new wells and performed eight recompletions in the quarter.
Financial and Operational Highlights
--------------------------------------------------------------------------------------------------------------------------------------------------------Three months ended December 31 2012 2011----------------------------------------------------------------------------($000's unless otherwise stated)Petroleum revenue net of royalties $ 9,351 $ 5,869Net earnings (loss) (306) (256) Per share (basic and diluted) (0.00) (0.00)Funds flow from operations(1) 3,123 134 Per share (basic and diluted)(1) 0.03 0.00Operating netback(1) ($/Bbl) 49.74 49.43Funds flow netback(1) ($/Bbl) 19.07 1.52Capital expenditures 2,705 3,142Assets acquired from acquisitions 12,605 -Total assets (end of period) 140,686 125,977Total debt(1) (end of period) 24,437 26,170Shareholders' equity (end of period) 53,144 44,108Weighted average shares outstanding Basic and diluted 119,046,465 108,928,242Outstanding shares (end of period) 138,956,917 108,928,242Average daily production (Bbls/day) 1,549 925Average realized selling prices ($/Bbl) 88.67 95.60--------------------------------------------------------------------------------------------------------------------------------------------------------(1)See "Non-GAAP Measures"
The first quarter ended December 31, 2012 was a pivotal period for the Company. The quarter represented the Company's fifth straight reporting period of positive cash flow and the tenth consecutive reporting period of incremental production growth. During the quarter the Company also completed the acquisition of Primera Energy Resources Ltd. ("PERL") which further consolidated its direct and indirect holdings in Trinidad.
The Company drilled, and placed on production, three wells during the first quarter ended December 31, 2012. This organic growth served to further validate the Company's proof of concept, as the development wells were drilled on three blocks that had not been previously drilled by the Company. Production from these wells has exceeded the Company's expectations and as a result the Company has prioritized a number of new locations in its upcoming drilling schedule. The 2013 drilling program is scheduled to commence mid-March with five initial wells.
