(Alliance News) - Touchstone Exploration Inc said Friday it recorded a narrowed loss in the third quarter of 2020, as a drop in oil production was compounded by lower prices but the company reduced costs.
In the three months to September 30, Touchstone recorded a net loss of USD703,000, narrowed from USD1.1 million a year before.
Petroleum sales dropped 48% year on year to USD4.7 million from USD9.0 million.
Average daily crude oil production fell 24% to 1,310 barrels from USD1,729 a year before. The company said this was due to "the ongoing impact of natural declines". Touchstone's operating netback was down 43% to USD14.09 from USD24.56, as the average realised sales price dropped 31% to USD39.20.
However, Touchstone noted that operating costs per barrel were reduced by 10% compared to a year before and general and administrative expenses by 9%.
"The board's focus remains on our Ortoire property where exploration activities to date have significantly exceeded expectations," Chief Executive Paul Baay said of the license in Trinidad & Tobago.
He continued: "Our base crude oil production continues to cover our operating costs, allowing us to direct our capital exclusively to our ongoing exploration program. The oversubscribed private placement completed post period end places us in a strong position to continue the execution of our Ortoire drilling, production testing and tie-in operations."
Baay noted the firm is currently drilling its fourth exploration well, Cascadura Deep-1, and is in the process of finalising a nine-month extension to the exploration phase of the Ortoire licence.
"Alongside this, we continue to negotiate a natural gas sales agreement with the National Gas Co of Trinidad & Tobago. I look forward to updating our shareholders as operations progress," he added.
Shares in Touchstone Exploration were 1.2% higher in London on Friday at 102.25 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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Touchstone Exploration (TXP)