REG - Touchstone Explrtn. - OPERATIONAL UPDATE

Touchstone ExplorationAnnouncement

Today 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260528:nRSb9599Fa&default-theme=true

RNS Number : 9599F  Touchstone Exploration Inc.  28 May 2026

OPERATIONAL UPDATE

 

CALGARY, ALBERTA (May 28, 2026) - Touchstone Exploration Inc. ("Touchstone",
"we", "our" or the "Company") (TSX, LSE: TXP) provides an update on its recent
operational activities in the Republic of Trinidad and Tobago.

 

Highlights

·  Oil production growth: The FR-1835 and FR-1836 development wells on the
WD-8 block were successfully completed and placed on production in mid-May
2026. Since startup, the wells have collectively averaged approximately 175
bbls/d of medium-gravity crude oil, performing in line with expectations.

·      Optimized gas pricing outlook: The Company has been advised that
Atlantic LNG Train 4 is undergoing a scheduled 54-day maintenance shutdown
that commenced on May 26, 2026. During this period, Central block gas volumes
will be redirected to Train 2/3 and the domestic market, which is anticipated
to enhance our realized natural gas pricing.

·   Progress at Cascadura: Mechanical and electrical installation of the
Cascadura facility booster compressor continues to progress on schedule, with
commissioning expected to commence in June 2026.

·     Carapal Ridge 3 production optimization: Touchstone is preparing for
a coiled tubing cleanout and acid stimulation program at the Carapal Ridge 3
("CR-3") well to address an inflow restriction and maximize production
performance.

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

 

"Operationally, our focus remains on efficiently converting reserves into
near-term cash flow. The addition of two development wells on our legacy WD-8
oil block provides immediate, stable cash flow that capitalizes on current
strong global crude oil prices. Crucially, these wells were funded via our
strategic exchange of the Fyzabad asset last year, which produced
approximately 49 barrels per day in 2025, representing an excellent allocation
of capital.

 

Simultaneously, we are on the verge of expanding our natural gas throughput
capacity at Cascadura as compressor installation advances toward a June 2026
commissioning. At the Central field, the CR-3 well is awaiting coiled tubing
services to commence a well intervention to unlock its full productivity. We
continue to prioritize disciplined capital allocation, focusing on high-return
well and facility optimizations."

 

Operational Update

 

WD-8 Block Drilling

 

Following the conclusion of the WD-8 drilling campaign, the FR-1835 and
FR-1836 development wells were completed and brought online in mid-May.
Combined production from the two wells has averaged a field estimated 175
barrels per day of medium-gravity crude oil, performing in line with internal
expectations. Field operations teams are currently optimizing production flow
rates.

 

Turnkey drilling costs for both wells were funded by the drilling operator
under the terms of the strategic asset exchange agreement executed by the
Company in 2025.

 

Central Block Natural Gas Marketing

 

Atlantic LNG Train 4 is undergoing planned maintenance from May 26 through
July 19, 2026. Additionally, the main transportation pipeline serving Atlantic
LNG will be offline for planned maintenance between June 15 and June 29, 2026.

During these scheduled infrastructure outages, Touchstone's natural gas
volumes from the Central block are being redirected to Atlantic LNG Train 2/3
or the domestic market. The Company expects this temporary diversion to
positively impact its net realized gas price. Based on current benchmark strip
pricing, the pricing formula allocated to Train 2/3 is structurally higher
than Train 4, while domestic industrial demand remains exceptionally strong,
driven by robust local petrochemical and fertilizer (methanol and ammonia)
production.

 

Cascadura Booster Compressor

 

At the Cascadura facility on the Ortoire block, installation of the new
booster compressor is advancing rapidly across both mechanical and electrical
work streams, with facility commissioning remaining on schedule to begin in
June 2026.

 

The compressor is designed to lower wellhead backpressure, mitigating regional
pipeline capacity limitations and allowing the wells to flow more freely. This
project is expected to enhance overall production efficiency and facility
reliability.

 

CR-3 Well Intervention

 

Since commencing first production to the facility, the CR-3 well has delivered
stable flowing pressures and gross field estimated production rates of
approximately 2.2 million cubic feet of natural gas per day and 14 barrels of
condensate per day, with no prior interventions performed.

 

As previously announced, ongoing reservoir performance analysis indicates a
localized inflow restriction within the formation, likely caused by residual
drilling and completion fluids. To unlock the well's full productivity,
Touchstone has designed a targeted coiled tubing cleanout and acid stimulation
program.

 

Operations are currently contingent on the availability of a local coiled
tubing unit. The sole local service provider capable of executing this program
is currently addressing mechanical issues with its unit and sourcing
replacement parts. Given the favourable gas pricing associated with the Train
4 diversion, Touchstone is evaluating whether it is commercially advantageous
to defer the CR-3 shut-in and optimization program until the Atlantic LNG
maintenance window concludes.

 

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
(http://www.touchstoneexploration.com/) or contact:

 

Touchstone Exploration Inc.

Paul R. Baay, President and Chief Executive
Officer                               Tel: +1
(403) 750-4487

Brian Hollingshead, EVP Engineering and Business Development

 

Canaccord Genuity (Nominated Advisor and Joint Broker)

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

 

Cavendish Capital Markets Limited (Joint Broker)

Neil McDonald / Derrick Lee / Graham
Hall
            Tel: +44 (0) 131 220 6939

 

FTI Consulting (Financial PR)

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

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

 

Advisories

 

Forward-looking Statements

 

The information provided in this announcement contains certain forward-looking
statements and information (collectively, "forward-looking statements") within
the meaning of applicable securities laws. Such forward-looking statements
include, without limitation, forecasts, estimates, expectations and objectives
for future operations that are subject to assumptions, risks and
uncertainties, many of which are beyond the control of the Company.
Forward-looking statements are statements that are not historical facts and
are generally, but not always, identified by the words "expect", "believe",
"estimate", "potential", "anticipate", "forecast", "pursue", "aim", "intends",
and similar expressions, or are events or conditions that "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.

 

Specifically, this announcement includes, but is not limited to,
forward-looking statements relating to: the Company's business plans,
strategies, priorities and development plans; anticipated developmental
drilling and facility upgrade activities, including locations, the timing
thereof and related production and cash flows therefrom; field estimated
production rates; the expected timing and potential success of the coiled
tubing cleanout and acid stimulation program at the CR-3 well and its impact
on reservoir inflow and production productivity; the anticipated timing for
the completion, commissioning, and startup of the Cascadura compressor,
including the project's impact on wellhead backpressure, overall production
rates and operational stability; and Touchstone's current and future financial
position, including the Company's liquidity and the sufficiency of resources
to fund current obligations and future capital expenditures. The Company's
actual decisions, activities, results, performance, or achievement could
differ materially from those expressed in, or implied by, such forward-looking
statements and accordingly, no assurances 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 that 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 2025
Annual Information Form dated March 30, 2026 which is available on the
Company's profile on SEDAR+ (www.sedarplus.ca (http://www.sedarplus.ca/) ) and
website (www.touchstoneexploration.com (http://www.touchstoneexploration.com/)
). 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.

 

Competent Persons Statement

 

In accordance with the AIM Rules for Companies, the technical information
contained in this announcement has been reviewed and approved by Brian
Hollingshead, Executive Vice President, Engineering and Business Development
of Touchstone Exploration Inc. Mr. Hollingshead is a qualified person as
defined in the London Stock Exchange's Guidance Note for Mining and Oil and
Gas Companies and is a member of the Association of Professional Engineers and
Geoscientists of Alberta. Mr. Hollingshead holds a Bachelor of Science in
Electrical Engineering from the University of Alberta and has over 20 years of
oil and gas exploration and development experience.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDZZGZKZNVGVZZ



            Copyright 2019 Regulatory News Service, all rights reserved