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Oil & Gas

Touchstone Exploration production rises thanks to successful well programme

The oiler has been drilling new wells and 'recompleting' old ones

Trinidad-focused Touchstone Exploration Inc (LON:TXP, TSE:TXP) told investors that crude oil production averaged 1,758 barrels per day in the third quarter as the group's successful well programmes continued to deliver.

The third quarter production measure represented a 22% improvement from the comparative period the previous year.

READ: Touchstone Exploration looks ahead to 'game-changing' 2019 plans

Touchstone drilled three new wells and ‘recompleted’ 12 others, spending some US$4.54mln on the development operations.

In the three month period, Touchstone realised some US$12.89mln in petroleum sales, up 63% versus last year, and, netback per barrel was up 52% from last year at US$37.13.

Earnings of US$267,000 were recognized for the period, from a loss of US$1.2mln in the third quarter of 2017.

Touchstone ended the period with net debt of US$12.97mln.

In a note to clients, analysts at 'house' broker Shore Capital said: “With Touchstone continuing its very active drilling programme and production growth coming through successfully, we continue to see considerable running room for the shares.”

The analysts said their last published Risked NAV estimate for Touchstone stands at 35p per share, with the stock trading at 15.00p in late morning trading, down 9% on Tuesday’s close.

-- Adds analyst comment, share price --

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