Touchstone Exploration swings to profit after production jumps

Touchstone Exploration reported on Wednesday that it swung to a profit in the third quarter as the Trinidadfocused oil and gas company benefitted from increased production and rising oil prices.

Crude oil production averaged at 1,758 barrels per day in the three months ended 30 September, a 22% increase on the same period last year, with year-to-date average production having jumped 24% to 1,674 barrels per day.

Even so, the AIM traded company reported that production growth was slowed by weather based electrical supply disruptions and a higher than normal crude oil inventory.

Earnings in the third quarter increased from a loss of CA$1.2m to a profit of CA$0.3m as petroleum sales increased by 63% to CA$12.9m.

In the first nine months of the year Touchstone has narrowed its loss to CA$0.3m from CA$4.6m across the same period last year.

Three further wells drilled during the period take the total drilled this year to eight, double the amount drilled in the first nine months last year, which added approximately 249 bbls/d of incremental production in the third quarter.

The drilling of four further wells is projected during the fourth quarter, with two wells at the South Palo Seco property being pushed into next year’s drilling program.

Touchstone’s shares were down 7.58% at 15.25p at 1032 GMT.