StockMarketWire.com - Canada-based Touchstone Exploration posted a deeper second-quarter loss after a slump in oil prices and lower production hurt revenue.

Net losses for the three months through June amounted to $2.7m, compared to losses of $0.8m on-year. Petroleum sales dropped 61% to $3.8m.

The company said it had started drilling the Chinook-1 exploration well in Trinidad and Tobago on 13 August.

'The spudding of the Chinook well marks the next phase of our Ortoire block exploration program that has already delivered two successful natural gas wells in just over a year,' chief executive Paul R. Baay said.

'In addition to the initial work undertaken at Chinook, we have made progress across the Ortoire block, commissioning the previously announced Cascadura area independent reserves evaluation as well as commencing the Coho-1 tie-in project.'

'In conjunction, we have been diligently working with the relevant government agencies to fulfill our regulatory and environmental obligations.'

'I am happy to report that the company finished the period with a healthy cash position with increased financial flexibility through the new term loan, a position that has been further buoyed by monetizing our Trinidad government issued bonds in July.'

'Finally, I would like to thank all members of our staff for their tireless work and dedication that have enabled us to keep the drilling program and facilities projects moving forward during these challenging times.'


At 9:50am: [LON:TXP] Touchstone Exploration Inc share price was -1.5p at 73.5p



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