Touchstone Exploration Inc (AIM:TXP, TSX:TXP, OTC:PBEGF) said the commissioning of the Cascadura facility and completing production testing at Royston-1X remain its main focus as it unveiled second-quarter results.
The Trinidad oil and gas explorer and producer reported average quarterly production volumes of 1,827 barrels of oil equivalent per day (boepd), up 29% on a year ago, as the addition of natural gas from the Coho-1 well offset a 21% decline in oil production.
Paul Baay, president and chief executive, said: “The results come as we continue to focus our efforts on the commissioning of the Cascadura facility and completing production testing at Royston-1X. We look forward to providing shareholders with further updates in the near term."
At the end of last month, the company reported the mechanical completion of the newly built Cascadura facility, with pressure testing 70% complete and final inspections still due, while production testing was being conducted at the Royston-1X well.
It had a cash balance of US$10.1 million at the end of March and net debt of US$28.9 million.
Almost US$7.2 million of realised sales were generated from petroleum and natural gas, compared to US$12.6 million a year earlier, as US$811,000 in net natural gas sales were offset by a US$6.2 million decrease in crude oil sales, mostly reflecting the 36% decline in realised crude oil prices.
An operating ‘netback’ of US$2.8 million was generated, a 51% decrease primarily down to the decline in oil and gas sales.
A net loss of US$71,000 was recognised and comprehensive income of US$136,000 in the quarter, versus a net loss of US$262,000 and a comprehensive loss of US$529,000 a year earlier.