REG - Touchstone Explrtn. - CARAPAL RIDGE-3 DRILLING RESULTS

Touchstone ExplorationAnnouncement

Mon 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:20260105:nRSE6215Na&default-theme=true

RNS Number : 6215N  Touchstone Exploration Inc.  05 January 2026

carapal ridge-3 DRILLING RESULTS

 

CALGARY, ALBERTA (January 5, 2026) - Touchstone Exploration Inc.
("Touchstone", "we", "our" or the "Company") (TSX, LSE: TXP) provides an
operational update on the Carapal Ridge-3 development well ("CR-3"), located
on the Central block onshore in the Republic of Trinidad and Tobago.
Touchstone holds a 65 percent operating working interest in the well, with
Heritage Petroleum Company Limited holding the remaining 35 percent.

 

Highlights

 * CR-3 is the first well drilled into the Carapal Ridge pool in the past 17
years and encountered approximately 1,082 feet of net sand, including
approximately 1,000 feet of net Herrera sand.

 * Open-hole wireline logging, mud logging, and drilling data collectively
indicate the presence of hydrocarbon-bearing sands throughout the Herrera
interval.

 * The well encountered a thick pay zone across multiple Herrera horizons, both
above and below a shale marker.

 * Completion operations are underway, with tie-in to the Central block natural
gas processing facility targeted for the first quarter of 2026.

 * The well results support the potential for up to three additional Herrera
development wells on the Central block.

 * CR-3 also established a second, uphole, gas-charged play in the Karamat
formation, which is being evaluated as a stand-alone prospect for potential
drilling.

The CR-3 well was spud on November 23, 2025, using Star Valley Drilling Rig
#205 and was drilled to a total depth of 8,200 feet over a 35-day period.
Following open-hole logging operations, the well was cased for future
production. Based on initial field-level cost estimates, the well was
approximately 25 percent over budget and did not require any sidetrack
operations. The additional time and costs were primarily attributable to
efforts required to control natural gas flows from the Karamat sands, which
have not previously been produced on the Central block.

 

The primary target of the CR-3 well was the Herrera sands, which are prevalent
within the Carapal Ridge pool. CR-3 is the first well drilled into the Carapal
Ridge pool in the past 17 years and encountered approximately 1,000 feet of
net Herrera sand. The well targeted Herrera sands within the developed
reservoir section currently on production above a 30-foot shale marker, as
well as unproduced Herrera sands below the shale marker. The lower sands were
previously completed and tested, but not produced, by a prior operator in the
offsetting Carapal Ridge-1 well. These completion tests, known as tests 4, 5
and 6, flow tested at combined peak average daily test rates of over 20
million cubic feet of natural gas and 500 barrels of condensate for periods of
approximately one to two days.

 

CR-3 encountered approximately 635 feet of net sand in the developed Herrera
reservoir at depths between 6,930 feet and 7,770 feet above the shale marker
and approximately 365 feet of net Herrera sand below the shale marker within
the unproduced reservoir at depths between 7,770 feet and 8,200 feet. Although
drilling was terminated at 8,200 feet, the well remained within clean sand at
total depth. In addition to the Herrera sands, approximately 82 feet of net
Karamat sands were also encountered directly above the Herrara formation at
depths between 6,530 feet and 6,760 feet. These Karamat sands are also present
in the Carapal Ridge-1 and Carapal Ridge-2 wells.

 

The well was originally planned as a deviated well targeting the Herrera
sands; however, during drilling, the well naturally built angle in the
production section and approximately 341 feet was drilled horizontally into
the unproduced Herrera sand package, optimizing reservoir exposure. Open-hole
wireline logging, mud logging, and drilling data collectively indicate the
presence of hydrocarbon-bearing sands throughout the Herrera interval,
extending to and including the end of the horizontal section.

 

Completion operations are underway at CR-3. The Company intends to initially
produce the undeveloped Herrera sands from the horizontal section of the well
below the shale marker, while the uphole developed Herrera sands may be
perforated at a later date. Much of the CR-3 facility tie-in equipment has
been procured and is currently in Trinidad, with tie-in to the Central block
natural gas processing facility targeted for the first quarter of 2026.

 

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

 

"The CR-3 well is our inaugural development well on the Central block and the
first well drilled on the field in over 17 years. The well was executed
successfully by our drilling team and represents our first horizontal well
drilled into the Herrera reservoir.

 

As anticipated, CR-3 encountered hydrocarbon-bearing sands both below and
above a key shale marker. We intend to initially produce from the lower
horizontal section of the well, with significant volumes of uphole sands
available for potential future perforation. While the well has resulted in
thick pay zone across multiple horizons, the ultimate deliverability will not
be known until the well is completed and tied into the facility. Several
variables will influence performance, including the fact that the formation
has not previously been produced from a horizontal well and the management of
downhole pressures.

 

Importantly, the well has confirmed both the seismic model and the areal
extent of a thick Herrera section. These results are encouraging and support
the potential for three additional Herrera wells on the block. The well has
also established a second gas-charged play in the Karamat formation at
approximately 6,700 feet, which is now being evaluated as a stand-alone
prospect for future drilling. We look forward to tying CR-3 into our Central
block facility in the quarter to enhance our natural gas sales volumes and
realized pricing under our two liquefied natural gas marketing arrangements."

 

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 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

 

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

Advisories

 

Certain information contained in this announcement would have been deemed
inside information as stipulated under the UK version of the EU Market Abuse
Regulation (2014/596) which is part of UK law by virtue of the European Union
(Withdrawal) Act 2018, as amended and supplemented from time to time, until
the release of this announcement.

 

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; the quality and quantity of
prospective hydrocarbon accumulations based on wireline logs, including the
Company's interpretations thereof; the Company's expectations regarding timing
and results of future drilling, completion, and tie-in operations at including
anticipated production rates and commercial outcomes therefrom; the Company's
initial field estimates of CR-3 drilling costs; and Touchstone's current and
future financial position, including the Company's liquidity and the
sufficiency of resources to fund 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 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 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. 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.

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  UPDAKQBPFBKDBDK



            Copyright 2019 Regulatory News Service, all rights reserved