Touchstone Exploration Inc results highlight year of significant progress
“The company is very well positioned for another year of growth as we move forward with our exploration, development and production program at Ortoire and across the wider portfolio,” said Paul Baay
(LON:TXP, ), in its financial results, highlighted a “year of significant progress” in which the company enhanced its financial position significantly.
During the year, it unearthed new discoveries and inked a long-term natural gas sales agreement with Trinidad’s National Gas Company – following the successful results on the Ortoire block.
Oil sales, meanwhile, averaged 1,392 barrels per day over the year which marks a 24% decrease on the prior year.
Production rates for oil are, as expected, impacted by natural decline and the company noted that its strategic focus has been on Ortoire.
During 2020, the company invested some US$17.86mln of capital into Ortoire operations.
The company reported a US$11.03mln loss for the year, including a US$11.41mln impairment related to lowered crude price forecasts.
In its operations the company reduced discretionary costs by around 12% and cut admin expenses by 6%.
The new drilling was supported by a US$20mln loan facility and some US$39.2mln of funding via two oversubscribed placings. The company ended the year with US$24.28mln of cash, including a US$12.93mln working capital balance. Some US$7.5mln had been drawn on its loan facility.
“2020 presented significant challenges to the wider oil and gas industry due to the impact of COVID-19 on working operations and the volatile nature of global oil prices,” said Paul Baay, chief executive.
He added: “I would like to thank the entire team at Touchstone for their dedication, perseverance and flexibility during this difficult period which has enabled us to achieve such success.
“As a result of their hard work, the company is very well positioned for another year of growth as we move forward with our exploration, development and production program at Ortoire and across the wider portfolio.”
Broker FinnCap said there were no surprises in the results “but they serve to remind us of the major progress the company delivered last year against a challenging backdrop of weak oil prices and a global pandemic.
“A further two major new gas discoveries on its onshore Ortoire block have transformed the outlook for the company, with 2021 set to be the year where this starts to deliver strong growth.”
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