Outlook: A new beginning
Post the successful consolidation of Petrobank in May 2014, a renewed Touchstone is now moving forward with a C$28m, 21-well recompletion and infill drilling programme in Trinidad, which we expect will be financed by cash from operations, as well as from cash available from Petrobank, post consolidation. In line with guidance, we are also modelling a 30-well, C$29m capex spend in 2015, with the proposed 2015 drilling programme increasing our forecast oil production to over 3.0mb/d, and in turn generating sufficient cash flow to cover capex and potentially partially pay down old Touchstone outstanding debt. Currently trading below our core NAV of C$1.34/share, we find value in the story, should drilling and production targets be met.Touchstone Exploration Inc., formerly Petrobank Energy and Resources Ltd., is an oil and gas exploration and production company. The Company's segments include Trinidad and Canada. The Company's core producing properties are located onshore within Trinidad. The Company's producing properties in Trinidad include Coora 1, Coora 2, New Dome, South Palo Seco, Barrackpore, Fyzabad, Icacos, Palo Seco and San Francique. The Company's exploratory properties in Trinidad include Bovallius, Moruga, New Grant, Ortoire, Otaheite, Piparo, Rousillac, Siparia and St. John. Its exploratory properties in Canada include Beadle, Druid, Luseland and Winter. The gross acres of the properties include approximately 106,604. The Company operates a total of approximately 370 wellbores on the Coora blocks. The New Dome block is located onshore in the southwest portion of Trinidad in the Ward of Siparia. The Barrackpore Block is located approximately 11 kilometers southeast of the city of San Fernando.
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