- Oil company Touchstone Exploration has reported a net loss in the third quarter of 2020 as crude oil production declined, but posted positive cash flows during the period.

The company said it delivered average daily crude oil production of 1,310 barrels per day, compared to 1,396 barrels per day in the second quarter of 2020 and 1,729 barrels per day in the third quarter of 2019.

It announced generated funds flow from operations of $192,000 and an operating netback of $14.09 per barrel, and said this represented increases from the second quarter of 2020 'based on higher realised crude oil sales pricing'.

Touchstone Exploration reported a net loss of $703,000 for the period, compared to a net loss of $1,053,000 in the third quarter of 2019, and said this was despite a 47% reduction in petroleum revenues between the corresponding periods.

The company said: 'The rapid decline in oil prices had a negative impact on our cash flows during the nine months ended September 30, 2020 and our projections for the balance of the year.'

It raised gross proceeds of approximately $30.3 million via a private placement completed on November 12 2020 which will support the completion of the initial phase of exploration work on the Ortoire block.

President and chief executive Paul R. Baay said: 'The board's focus remains on our Ortoire property where exploration activities to date have significantly exceeded expectations.

'Our base crude oil production continues to cover our operating costs, allowing us to direct our capital exclusively to our ongoing exploration program.'

At 9:43am: [LON:TXP] Touchstone Exploration Inc share price was 0p at 101p

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