Page 18 - LatAmOil Week 20 2020

LatAmOil
NEWS IN BRIEF
LatAmOil
“It’s extremely encouraging to still see projects such as this moving ahead in the current low-oil- price climate. If an operator is considering a new platform installation, now is the time to progress. Even with this market uncertainty, overall pro- ject costs have been reduced, which should be a factor in any decision.”
Sea Swift is a minimum-facility offshore platform that utilises innovative structural con- figurations to reduce the overall footprint of the facility, whilst ensuring the highest standard in platform integrity. The simplified design, reduced steel requirement and focus on using available infrastructure and fabrication facilities keep initial expenditure low, but also mitigate the risks of escalating project costs. The platform offers a low-risk, low-cost route to reduce time to first oil or gas production resulting in lower capital investment – without a compromise on the overall safety of the structure.
The work for DeNovo Energy is expected to be completed in Q3 2020.
Aquaterra Energy, May 18 2020
PERFORMANCE
Touchstone announces
Q1-2020 results and
operational update
Touchstone Exploration has reported its oper- ating and financial results for the three months ended March 31, 2020.
Operational Highlights: In response to the coronavirus (COVID-19) pandemic, we have made numerous adjustments to our operating practices to provide ongoing safety and business continuity. Aside from delaying timing of our capital projects, the Company has had no mate- rial operational impacts from the pandemic at present.
Q1-2020 crude oil sales averaged 1,589 bar- rels per day (bpd), compared to 1,690 bpd in the fourth quarter of 2019 and 2,121 bpd in the first quarter of 2019. Our mature field production has declined as a result of our increased focus of capital directed towards Ortoire exploration activities since January 2019.
In the first quarter we invested $1.823mn in exploration activities, completing two successful production tests on our Cascadura-1ST1 explo- ration well and completing lease preparations on our Chinook-1 exploration well site. We con- tinue to prepare to drill an exploration well at our Chinook prospect and currently anticipate drilling the well in July 2020.
We have negotiated a contract with a local construction firm to tie in the Coho-1 well, with operations expected to commence once
government-imposed restrictions are lifted. Subsequent to quarter end, Touchstone entered into a framework agreement with the National Gas Company of Trinidad and Tobago and Heritage Petroleum Company for the devel- opment, sale and purchase of natural gas and natural gas liquids produced from the Ortoire
block.
On May 13, 2020, we retrieved the downhole
pressure recorder from the Cascadura-1ST1 well. The reservoir data will be interpreted inter- nally and by our independent reserves evaluator, and we expect to release the results prior to the end of May 2020.
Subsequent to the drilling of Chinook-1, we are currently reviewing the option of drilling a second deeper exploration well on the Cas- cadura field ahead of the previously planned Royston location in order to mitigate possible delays in the construction of the access road and fulfill our drilling obligations under the Ortoire licence.
Financial Highlights: Touchstone exited the quarter with cash of $12.219mn and net debt of $5.244mn. Net debt decreased by 68% from year end as a result of the previously announced February 2020 private placement that raised net proceeds of $10.85mn.
Realised crude oil prices averaged $46.10 per barrel, decreasing 20% from both $57.38 per bar- rel in the prior quarter and $57.71 per barrel in the first quarter of 2019. A 44% decline in real- ised pricing from February to March 2020 led us to immediately restrict certain field operations and discretionary operational spending.
We generated $1.257mn in funds flow from operations ($0.01 per share), a decrease of 48% relative to $2.43mn ($0.02 per share) in the first quarter of 2019. The decline was primarily attrib- utable to lower production and significantly lower crude oil prices received in March 2020.
Non-cash impairments charges of $19.215mn were recognised, triggered by the impact of mate- rially lower forward crude oil forecasts, offset by a deferred income tax recovery of $10.072mn. As a result, a net loss of $9.24mn ($0.05 per share) was recognised in the first quarter of 2020 com- pared to a net loss of $185,000 reported in the prior year equivalent quarter.
Paul R. Baay, President and Chief Execu- tive Officer, commented: “The first quarter of 2020 has been unprecedented for the oil and gas industry, given the collapse of oil prices and the global economic uncertainty of COVID-19. The safety of our employees continues to be of paramount importance to the Board and man- agement team, and I would like to thank our employees for their dedication and flexibility during this challenging period as we adjusted to a new working environment.
“While there have been major sector chal- lenges, I am pleased to report that Touchstone
has continued to take several positive steps during the quarter. In addition to the successful production tests at Cascadura, we have made progress on tying in the Coho-1 gas well, and the $10.85mn fundraising completed in Febru- ary allows us to continue to prepare for drilling at our Chinook location, the third exploration well on the Ortoire block. With clear explo- ration targets, we remain confident about the long-term strategy of the Company, especially given our increasing focus on natural gas, and the increased stability that this will give us from a financial perspective amidst a volatile crude oil market.”
Touchstone Exploration, May 14 2020
Parex reports
on Q1-2020 results
Parex Resources, a company focused on Colom- bian oil exploration and production, announces its unaudited financial and operating results for the three months ended March 31, 2020. All amounts herein are in US Dollars unless other- wise stated.
Parex continues to work with the community during the COVID-19 pandemic to support safety and wellness. The company is supporting local communities in Calgary and Colombia by sponsoring food deliveries, contributing to local food banks and supplying personal protective equipment. Along with enhancing the safety protocol in its operating fields, Parex continues to look for ways to further support its communi- ties during this challenging time.
2020 first-quarter highlights: Quarterly average production was 54,295 barrels of oil equivalent per day (boepd), consisting of 53,037 barrels per day (bpd) of crude oil and 7.548 mcf (213,750 cubic metres) per day of conventional natural gas (98% crude oil), an increase of 15% on a per basic share basis over the prior year comparative period.
Recognised a net loss of $3.8mn ($0.03 per share basic) compared to net income of $87.2mn ($0.61 per share basic) in the previous quarter ended December 31, 2019 and net income of $82.0mn ($0.54 basic per share) in the compar- ative quarter of 2019. The net loss is primarily a result of an $84.7mn reduction in deferred tax assets as a result of a 24% decrease in the COP/ USD exchange rate in Q1-2020.
Generated an operating netback of $24.41 per barrel of oil equivalent (boe) and funds flow provided by operations (FFO) netback of $20.63 per boe from an average Brent price of $51.05 per barrel.
FFO of $97.3mn ($0.69, or CAD0.93) per share basic) as compared to $133.5mn ($0.88, or CAD $1.17 per share basic) for the prior year comparative period.
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Week 20 21•May•2020