Touchstone Exploration Inc (LON: TXP) have seen their shares plummet across Thursday trading as the exploration firm gave shareholders a gloomy update.
Touchstone Exploration reported on Thursday that it had swung to a loss for the third consecutive quarter in financial 2019.
The news will critically alarm shareholders, as 2019 has produced a poor string of results for the Canadian headquartered exploration firm. The main operations of Touchstone reside within Trinidad & Tobago.
Shares of Touchstone Exploration plummeted 12.24% to 10p per share. 14/11/19 14:45BST.
For the three months to the end of September, Touchstone Exploration achieved average crude oil production of 1,729 barrels per day, down 2% from 1,758 barrels in the same period a year ago.
On a positive note, nine month average production was up 12% to 1,871 barrels per day but might not be enough to satisfy shareholders within a disastrous financial 2019.
Touchstone Exploration’s net loss for the quarter was CAD1.1 million, ($793,816), swinging from a profit of CAD199,000 a year before, as petroleum sales dipped by 9% to CAD9.0 million from CAD9.9 million.
The loss will worry shareholders, but many big oil and gas exploration firms have seen slumps which may act as consolidation for shareholders.
Shell (LON: RDSB) reported a sink in profits in their most recent update, whilst Total SA (LON: TTA) saw profits fall 15% in their third quarter update.
Both the big titans alluded to sinking oil prices and market volatility as drivers of slow business, but the extend to which Touchstone swung to a loss will be alarming.
The company has completed the primary target in the Coho-1 exploration well on the Ortoire block, onshore Trinidad, and is rigged up to start production testing, which is set to be completed next week.
Certainly, the poor performance of Touchstone cannot be just attributed to low oil prices. As this is the third consecutive quarter that losses have been reported then Touchstone do face an internal challenge to keep afloat a seemingly sinking ship.