(Alliance News) - Touchstone Exploration Inc on Thursday posted an annual loss after a significant rise in expenditure on exploration.
The Trinidad-focused oil firm, based in Calgary, posted a net loss of USD5.6 million in 2019 after net earnings of USD358,000 the year before.
This was despite petroleum sales rising 2% to USD38.7 million, with average daily production rising 6% to 1,825 barrels of oil per day. The realised sales price in the year was USD58.01 per barrel, 4% lower than the year before.
Touchstone's exploration capital expenditure in 2019 was USD10.1 million, far higher than the USD2.6 million in 2018. Of the 2019 amount, over half was spent in the last quarter, with Touchstone carrying work on the Ortoire property.
Turning to the future, Touchstone is keeping discretionary spending to a minimum amid the crash in the oil price caused by Covid-19. However, there has been no operational impact to-date.
Since the end of 2019, Touchstone has raised USD10.8 million in a share placing to fund the Chinook prospect on Ortoire. As well as drilling an exploration well at Chinook, Touchstone will also be focusing on bringing the Coho-1 and Cascadura-1ST1 wells into production "as soon as possible".
Shares were 2.3% higher on Thursday afternoon in London at a price of 26.85 pence each.
By George Collard; georgecollard@alliancenews.com
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Touchstone Exploration (TXP)