REG - Touchstone Explrtn. - CENTRAL BLOCK OPERATIONAL UPDATE

Touchstone ExplorationAnnouncement

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RNS Number : 8960Q  Touchstone Exploration Inc.  14 July 2025

CENTRAL BLOCK OPERATIONAL UPDATE

 

CALGARY, ALBERTA (July 14, 2025) - Touchstone Exploration Inc. ("Touchstone",
"we", "our" or the "Company") (TSX, LSE: TXP) provides an operational update
on the Central Block asset located onshore in the Republic of Trinidad and
Tobago.

 

As previously announced, on May 16, 2025 the Company, through its wholly owned
Trinidadian subsidiary, completed the acquisition of 100 percent of the share
capital of Shell Trinidad Central Block Limited. The acquired entity, now
renamed Touchstone Trinidad Central Block Ltd., holds a 65 percent operating
interest in the onshore Central Block exploration and production licence.
Heritage Petroleum Company Limited holds the remaining 35 percent
participating interest. The Central Block asset includes four producing
natural gas wells and a gas processing facility. Financial and operational
results from the acquired entity have been consolidated into the Company's
financial statements from the May 16, 2025 acquisition date.

 

Production Update

 

Gross production volumes from the Central Block averaged 2,969 boe/d (1,930
boe/d net) during the first quarter of 2025, comprising approximately 16.74
MMcf/d of natural gas and 179 bbls/d of NGLs.

 

Based on preliminary field estimates, second quarter 2025 gross production
averaged 3,023 boe/d (1,965 boe/d net), comprised of approximately 17.05
MMcf/d of natural gas and 181 bbls/d of NGLs.

 

Sales and Pricing Update

 

Natural gas from the Central Block is sold under two separate contracts: one
linked to LNG export pricing and the other to domestic market pricing,
primarily supplying Trinidad's petrochemical sector. LNG sales are subject to
vessel availability, referred to as liftings.

 

From January through April 2025, eleven LNG liftings (including associated
liquids) were completed, totaling 2,207,696 MMBtu. An additional 11,065 MMBtu
was sold into the domestic market. These volumes generated gross revenue of
$13.6 million ($8.9 million net). After transportation and processing costs,
gross revenue totaled $8.9 million ($5.8 million net). The Central Block also
generated $1.0 million in gross revenues ($0.65 million net) from condensate
sales at the facility, resulting in total gross revenue of $9.9 million ($6.4
million net) for the period. All sales volumes are subject to a 12.5 percent
state royalty and applicable plant operating costs.

 

The LNG liftings and associated liquids achieved an average realized price of
$6.15 per MMBtu, translating to a plant gate price of $4.00 per MMBtu after
deductions. Domestic sales achieved an average net plant gate price of $4.33
per MMBtu. Condensate was sold at an average price of $48.49 per barrel.

 

Development Activities

 

Touchstone has completed site surveys for two additional well pads, each
capable of supporting up to four drilling locations. The Company is currently
awaiting government construction approvals.

 

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

 

"We are pleased to provide our first operational update on the Central Block
following the successful completion of the acquisition. Since the completion,
we have delivered quarter-over-quarter production growth through continued
plant optimization - an excellent achievement by our Central Block team.

 

This update also highlights the strategic advantage of integrating LNG-based
pricing into our marketing portfolio. With commercial documentation complete
and the first LNG payment expected by the end of July, we are positioned to
benefit from predictable cash flows under the export contract.

The Central Block's strong performance supports our acquisition rationale and
enhances our marketing flexibility, diversifying revenue streams across LNG,
petrochemical, and fixed-price gas sales."

 

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

 

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 / Lucy
Wigney                                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, intentions, forecasts, estimates, expectations
and objectives 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.

 

In particular, this announcement includes, but is not limited to,
forward-looking statements regarding: the Company's business plans,
strategies, priorities and development plans; field estimated production
rates; the Company's expectation of payment timing and predictable cash flows
from Central Block commodity sales; the Company's expectations regarding
timing of future drilling and lease construction operations at the Central
Block including anticipated production rates and commercial outcomes
therefrom; 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 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.

 

Abbreviations

 

The following abbreviations may be referenced in this announcement:

 

bbl(s)                barrel(s)

bbls/d               barrels per day

boe                  barrels of oil equivalent

boe/d               barrels of oil equivalent per day

LNG                  liquified natural gas

Mcf                  thousand cubic feet

Mcf/d               thousand cubic feet per day

MMBtu              million British thermal units

MMcf                million cubic feet

MMcf/d             million cubic feet per day

NGLs                natural gas liquids

 

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