REG - Touchstone Explrtn. - Cascadura-4ST2X Well Results and Operations Update

Touchstone ExplorationAnnouncement

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RNS Number : 1785B  Touchstone Exploration Inc.  29 September 2025

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
THE MARKET ABUSE REGULATION (596/2014/EU) ("MAR") AS IT FORMS PART OF UK
DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 AS AMENDED
("UK MAR"). UPON THE PUBLICATION OF THIS ANNOUNCEMENT, SUCH INFORMATION WILL
NO LONGER CONSTITUTE INSIDE INFORMATION.

 

CASCADURA-4ST2 X WELL DRILLING RESULTS And operations update

 

CALGARY, ALBERTA (September 29, 2025) - Touchstone Exploration Inc.
("Touchstone" or the "Company") (TSX, LSE: TXP) provides an operational update
on its Ortoire block activities, including drilling results from the
Cascadura-4 development well ("Cas-4ST2X").

 

Cas-4ST2X Well Results

 

Operations at Cascadura-4ST2 resumed on August 16, 2025, utilizing Star Valley
Drilling Rig #205, and the well reached a total depth of 5,896 feet on
September 22, 2025. The well, now designated Cascadura-4ST2X, was originally
programmed to evaluate the Herrera Gr7bc sands to a depth of approximately
6,100 feet. However, after encountering gas-charged sands in the lower portion
of the well, circulation was lost, leading the Company to conclude drilling
operations earlier than planned.

 

During the pull-out, the drill string became stuck and, despite extensive
recovery efforts, could not be freed. The Company has elected to complete the
well for production using a combination of casing and the drill string,
enabling access to the gas-charged intervals identified while drilling.
Although open-hole logs could not be acquired, offset well data and real-time
drilling information confirm that the well intersected Herrera Gr7bc sands
consistent with the Company's geological model.

 

The primary objective of the well was the Herrera Gr7bc sands, which are
widespread across the Cascadura structure. Cascadura-4ST2X represents the
third well drilled into the "A" block of Cascadura to encounter sands within
the targeted reservoir.

 

Cascadura Development

 

Completion operations on the Cascadura-5 well will immediately commence. All
tie-in equipment is on location and the well will be tested directly through
the Cascadura natural gas facility following completion. Cas-4ST2X will
undergo final completion and tie-in once equipment and a service rig are on
site.

 

Following completion of Pad B operations, the drilling rig will move to the
Central block location identified as Carapal Ridge-3 ("CR-3"), where site
construction is approximately 60 percent complete. The location is expected to
be drill-ready by the end of October.

 

In parallel, the Company has secured a compressor for the Cascadura facility
to further enhance natural gas processing. The project is currently expected
to be completed in the second quarter of 2025.

 

Paul R. Baay, President and Chief Executive Officer, commented:

 

"With drilling complete on Pad B at Cascadura, we are moving rapidly into the
completion and tie-in phase.

While Cas-4ST2X presented challenges due to re-entering a previous wellbore,
the systems implemented on the Cas-5 well have proven effective. We remain
confident in our ability to drive repeatable cost and efficiency gains at
Cascadura and across our Central block program."

 

Production update

 

Production volumes averaged 5,152 boe/d in August 2025, compared with 5,300
boe/d in July and 5,088 boe/d in June. August volumes comprised 21.7 MMcf/d of
net natural gas production (3,623 boe/d) and 1,529 bbls/d of net crude oil and
liquids production.

 

Strategic Divestiture

 

Touchstone has entered into a sale and purchase agreement to dispose of its
non-core Fyzabad oil property to a third-party Trinidad-based company. Fyzabad
averaged 37 bbls/d of net production in August 2025 and had limited
scalability within the Company's portfolio.

 

Transaction consideration consists of three turnkey drilling wells to be
drilled across Touchstone's WD-8 and WD-4 blocks. Under the agreement, the
purchaser will drill the wells while Touchstone supplies certain ancillary
drilling and completion equipment.

 

Two wells are currently scheduled for drilling before year-end 2025, with the
third well planned for the first quarter of 2026. Closing of the Fyzabad
disposition is expected in the fourth quarter of 2025, subject to customary
regulatory approvals.

 

Touchstone Exploration Inc.

 

Touchstone Exploration Inc. is a Calgary, Alberta based company engaged in the
business of acquiring interests in petroleum and natural gas rights and the
exploration, development, production and sale of petroleum and natural gas.
Touchstone is currently active in onshore properties located in the Republic
of Trinidad and Tobago. The Company's common shares are traded on the Toronto
Stock Exchange and the AIM market of the London Stock Exchange under the
symbol "TXP".

 

For further information about Touchstone, please visit our website at
www.touchstoneexploration.com
(https://url.avanan.click/v2/___http:/www.touchstoneexploration.com/___.YXAxZTpzaG9yZWNhcDphOm86NzY3MDI3ZGJhNjJkMTBmN2M5YjgzOTJiZGY5NzNkZDg6NjphOTg1OjlmZDcwMWJhZDA2YzEwMDg1MjJhMGQzMzZjNWZjZTVlMzYyMDBhZTlkZDUzNDBlNjQ5OTc0OWEzOWVjOTNmYTI6cDpUOk4)
or contact:

 

Touchstone Exploration Inc.

Paul Baay, President and Chief Executive
Officer                       Tel: +1 (403) 750-4405

Brian Hollingshead, EVP Engineering and BD

James Shipka, EVP Asset Development and HSE

 

Shore Capital (Nominated Advisor and Joint Broker)

Daniel Bush / Toby Gibbs / Tom Knibbs
                        Tel: +44 (0) 207 408 4090

 

Canaccord Genuity (Joint Broker)

Adam James / Charlie
Hammond
Tel: +44 (0) 207 523 8000

 

FTI Consulting (Financial PR)

Nick Hennis / Ben Brewerton
                                    Tel:
+44 (0) 203 727 1000

Email: touchstone@fticonsulting.com (mailto:touchstone@fticonsulting.com)

 

Advisories

 

Working Interest

 

Touchstone holds an 80 percent operating working interest in the Cascadura
field, which forms part of the Ortoire block, onshore in the Republic of
Trinidad and Tobago. The remaining 20 percent participating interest is held
by Heritage Petroleum Company Limited.

 

Touchstone holds a 100 percent working interest in the Fyzabad, WD-4 and WD-8
blocks.

 

Forward-looking Statements

 

This announcement contains certain forward-looking statements and information
(collectively, "forward-looking statements") within the meaning of applicable
securities laws. Forward-looking statements relate to future events or the
Company's future performance and are not statements of historical fact. Such
statements are generally, but not always, identified by words such as
"expect", "believe", "estimate", "potential", "anticipate", "plan", "intend",
"forecast", "pursue", "aim", "target" or similar expressions, or by statements
that certain actions, events or conditions "will", "would", "may", "could" or
"should" occur or be achieved. The forward-looking statements contained in
this announcement speak only as of the date hereof and are expressly qualified
by this cautionary statement.

 

Forward-looking statements in this announcement include, but are not limited
to: the Company's business plans, strategies and priorities; internal
interpretations of hydrocarbon accumulations; estimated capital expenditures;
the timing and results of future drilling, completion and tie-in operations at
Cascadura-4ST2X and Cascadura-5 (including anticipated production rates and
commercial outcomes); the expected mobilization of the rig to the CR-3
location and the timing of site readiness; the timing of the CR-3 well spud;
expectations regarding the Cascadura facility compressor start-up; the
expected closing, timing and benefits of the Fyzabad property disposition; the
timing of drilling the three wells from the proceeds of the Fyzabad sales
agreement; and the Company's future financial position and funding plans. The
Company's actual decisions, activities, results, performance or achievements
could differ materially from those expressed in, or implied by, such
forward-looking statements, and no assurance can be given that any of the
events anticipated by the forward-looking statements will transpire or occur
or, if any of them do, what benefits Touchstone will derive from them.

 

Although the Company believes that the expectations and assumptions on which
the forward-looking statements are based are reasonable, undue reliance should
not be placed on the forward-looking statements because the Company can give
no assurance that they will prove to be correct. Since forward-looking
statements address future events and conditions, by their very nature they
involve inherent risks and uncertainties. Actual results could differ
materially from those currently anticipated due to a number of factors and
risks. Certain of these risks are set out in more detail in the Company's 2024
Annual Information Form dated March 19, 2025 which is available online under
the Company's profile on SEDAR+ (www.sedarplus.ca
(https://url.avanan.click/v2/___http:/www.sedarplus.ca/___.YXAxZTpzaG9yZWNhcDphOm86YmQ5MDlmZDBkODY2OWU4NTAwYzQwMDAzYjI0MjU0MmM6Njo4MGY2OjdmNTMwNmYyOWQ4ODllYTgyNzllMzYwMWZhODNmNDc1N2I0NzEyMzNjODZlNmI0MDI3NDBlYjBkNGMxMTQ3NmI6cDpGOk4)
) and on the Company's website (www.touchstoneexploration.com
(https://url.avanan.click/v2/___http:/www.touchstoneexploration.com/___.YXAxZTpzaG9yZWNhcDphOm86YmQ5MDlmZDBkODY2OWU4NTAwYzQwMDAzYjI0MjU0MmM6Njo0YjI4OmNjYzljOTBhYWFhMDQ5OTBiMjhkYTIzYzY5YTI0MzdkOWY2ZjViMjYyMGYzOWE0NzQyM2RjMzFhZTdiNmY4OGM6cDpGOk4)
). The forward-looking statements contained in this announcement are made as
of the date hereof, and except as may be required by applicable securities
laws, the Company assumes no obligation or intent to update publicly or revise
any forward-looking statements made herein or otherwise, whether as a result
of new information, future events or otherwise.

 

Oil and Natural Gas Measures

 

To provide a single unit of production for analytical purposes, natural gas
production has been converted mathematically to barrels of oil equivalent. The
Company uses the industry-accepted standard conversion of six thousand cubic
feet of natural gas to one barrel of oil (6 Mcf = 1 bbl). The 6:1 boe ratio is
based on an energy equivalent conversion method primarily applicable at the
burner tip. It does not represent a value equivalency at the wellhead and is
not based on either energy content or current prices. While the boe ratio is
useful for comparative measures and observing trends, it does not accurately
reflect individual product values and might be misleading, particularly if
used in isolation. As well, given that the value ratio, based on the current
price of crude oil to natural gas, is significantly different from the 6:1
energy equivalency ratio, using a 6:1 conversion ratio may be misleading as an
indication of value.

 

Product Type Disclosures

 

This announcement includes references to crude oil, NGLs, crude oil and
liquids, natural gas, and average daily production volumes. Under National
Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI
51-101"), disclosure of production volumes should include segmentation by
product type as defined in the instrument. In this announcement, references to
"crude oil" refer to "light crude oil and medium crude oil" and "heavy crude
oil" combined product types; references to "NGLs" refer to condensate and
propane; and references to "natural gas" refer to the "conventional natural
gas" product type, all as defined in the instrument. In addition, references
to "crude oil and liquids" herein include crude oil and NGLs.

 

The Company's average production disclosed herein consists of the following
product types as defined in NI 51-101 using a conversion of 6 Mcf to 1 boe
where applicable.

 

 Period       Light and Medium Crude Oil (bbls/d)  Heavy Crude Oil  Condensate (bbls/d)  Other NGLs (bbls/d)  Conventional Natural Gas (Mcf/d)  Total Oil Equivalent (boe/d)

                                                   (bbls/d)

 June 2025    1,060                                54               166                  239                  21,421                            5,088
 July 2025    1,073                                66               155                  283                  22,322                            5,300
 August 2025  998                                  39               170                  322                  21,740                            5,152

 

For further information regarding specific product disclosures in accordance
with NI 51-101, please refer to the "Advisories - Product Type Disclosures"
section of the Company's most recent Management's discussion and analysis for
the three and six months ended June 30, 2025 accompanying our June 30, 2025
unaudited interim condensed consolidated financial statements, both of which
are available online under the Company's profile on SEDAR+ (www.sedarplus.ca
(http://www.sedarplus.ca/) ) and on the Company's website
(www.touchstoneexploration.com (http://www.touchstoneexploration.com/) ).

 

Competent Persons Statement

 

In accordance with the AIM Rules for Companies, the technical information
contained in this announcement has been reviewed and approved by James Shipka,
Executive Vice President Asset Development and HSE of Touchstone Exploration
Inc. Mr. Shipka is a qualified person as defined in the London Stock
Exchange's Guidance Note for Mining and Oil and Gas Companies and is a Fellow
of the Geological Society of London (BGS) as well as a member of the Canadian
Society of Petroleum Geologists and the Geological Society of Trinidad and
Tobago. Mr. Shipka has a Bachelor of Science in Geology from the University of
Calgary and has over 30 years of oil and gas exploration and development
experience.

 

For the purposes of UK MAR and Article 2 of the binding technical standards
published by the Financial Conduct Authority in relation to MAR as regards
Commission Implementing Regulation (EU) 2016/1055, the person responsible for
the release of this announcement is Paul Baay, President and Chief Executive
Officer.

 

 

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