Touchstone reported 2Q16 production of 1,325 bbl/d that was in line with expectations, while cash flow of C$3.3 mm was better than our estimate of $C2.1 mm, due to a realized hedging gain and lower G&A costs. During 2Q16, Touchstone only incurred net capital expenditures of C$0.1 mm. The Company continues to focus on capital efficiencies and reductions in operating and G&A costs that will be realized in upcoming quarters.
