Touchstone Exploration reports its unaudited financial and operating results for the three months ended September 30, 2020. 

Third Quarter Highlights

• Delivered average daily crude oil production of 1,310 barrels per day ("bbls/d"), compared to 1,396 bbls/d in the second quarter of 2020 and 1,729 bbls/d in the third quarter of 2019. As expected and consistent with prior quarters, our crude oil production has reduced due to the ongoing impact of natural declines, reflecting a strategic focus on our Ortoire exploration program which has limited capital investment and reduced discretionary field maintenance expenditures.
• Invested $5,758,000 in exploration activities, primarily focused on Chinook-1 drilling operations and surface facility equipment expenditures relating to Coho-1 tie-in operations.
• Generated funds flow from operations of $192,000 and an operating netback of $14.09 per barrel, representing increases from the second quarter of 2020 based on higher realized crude oil sales pricing.
• Continued to focus on discretionary cost reductions, with operating costs on a per barrel basis decreasing by 10 percent and general and administrative expenses declining by 9 percent relative to the third quarter of 2019.
• Recognized a net loss of $703,000 ($0.00 per share) compared to a net loss of $1,053,000 ($0.01 per share) in the third quarter of 2019 despite a 47 percent reduction in petroleum revenues between the corresponding periods.
• Maintained financial flexibility, exiting the quarter with cash of $7,673,000 and raising gross proceeds of approximately $30.3 million via a private placement completed on November 12, 2020.

Paul R. Baay, President and Chief Executive Officer, commented:
"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. 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. 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. I look forward to updating our shareholders as operations progress." 

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