The comments came as the explorer posted results showing daily production of 1,310 barrels of oil per day (bopd) in the third quarter. The rate compares to 1,396 bopd in the preceding quarter and 1,729 bopd in the comparative three months last year.
The group noted that the fall in rates reflects a natural decline of the production assets as the Ortoire block is being advanced towards production.
“The board’s focus remains on our Ortoire property where exploration activities to date have significantly exceeded expectations,” said Paul Baay, Touchstone chief executive in the results statement.
Baay added: “We are currently drilling our fourth exploration well, Cascadura Deep-1, and we are in the process of finalizing a nine-month extension to the exploration phase of the Ortoire licence.
“Alongside this, we continue to negotiate a natural gas sales agreement with the National Gas company of Trinidad and Tobago.”
Touchstone said its production generated US$192,000, with operating netback noted at US$14.09 per barrel, supported by higher realised crude prices. At the same time operating costs reduced by around 10% and G&A costs declined 9% as the company continued to focus on discretionary cost reductions.
The company recognised a third-quarter net loss of US$703,000, compared to a net loss of US$1.03mln at the same stage last year.
At the end of the quarter, the company had US$7.67mln of cash, and in November it raised US$30.3mln from a placing.
“Our base crude oil production continues to cover our operating costs, allowing us to direct our capital exclusively to our ongoing exploration programme,” Baay said.
“The oversubscribed private placement completed post period end places us in a strong position to continue the execution of our Ortoire drilling, production testing and tie-in operations.”