Touchstone Exploration Inc. (TSX, LON:TXP) has provided an update on its recent operational activities in the Republic of Trinidad and Tobago. Operational activities during August and early September 2026 have focused on advancing the Company’s development, workover and production optimization programs across the WD-4, Ortoire and Central blocks.
Highlights
· Drilling operations: Construction of two WD-4 drilling locations is complete and the drilling rig has been mobilized to begin a two well drilling campaign, with the first well expected to spud in mid-September. Turnkey drilling costs for the second well will be covered by the drilling contractor.
· Cascadura optimizations: A solvent squeeze treatment at the Cascadura-2ST1 well has demonstrated promising incremental production gains, supporting potential deployment of this optimization strategy across additional Cascadura wells.
· CR-3 workover: Touchstone has completed a coiled tubing cleanout and acid stimulation program at the Carapal Ridge 3 (“CR-3”) well. The operation resulted in a limited production response and did not resolve reservoir damage from drilling operations; as a result, the Company is preparing a completion program targeting the uphole Karamat sands.
· Optimized gas pricing: July 2026 natural gas sales volumes from the Central block continued to be redirected to the Atlantic LNG Train 2/3 contract during Train 4 downtime and were sold at an estimated net-of-fees price of $10.28 per Mcf.
· Production: Net sales production averaged 4,402 boe/d in July 2026, while field-estimated net production averaged 4,392 boe/d in August 2026.
WD-4 Block Drilling
The Company has completed preparation of two WD-4 drilling locations, and the drilling rig is now on location. The first well of the Company’s two-well WD-4 development drilling campaign is expected to spud in mid-September 2026. The two wells represent commitment wells under the WD-4 Lease Operatorship Agreement.
The turnkey drilling costs associated with the second well will be covered by the drilling contractor, reducing the Company’s capital exposure while advancing development of the WD-4 field. The campaign is targeting additional oil production and represents the next phase of the Company’s ongoing field development program.
Cascadura Area (Ortoire Block)
At Cascadura-2ST1, the Company completed a solvent squeeze treatment designed to improve well productivity. The treatment has demonstrated promising incremental production gains, supporting the potential to apply this optimization strategy across additional Cascadura wells. The Company intends to evaluate and deploy similar treatments across the field where appropriate during the second half of 2026.
The Cascadura-3ST1 workover and Cascadura-5 recompletion are planned for execution in October 2026. Both activities are expected to provide additional opportunities to optimize production from the Cascadura field.
The Cascadura booster compressor commenced operations on July 9, 2026, and has been operating with improving uptime following initial post-commissioning troubleshooting, supporting increased natural gas throughput from the Cascadura field. Uptime availability improved from approximately 57 percent in July to 73 percent in August, supporting growth in average gross natural gas production from approximately 6.6 MMcf/d in June to 9.7 MMcf/d in July and 12.6 MMcf/d in August.
The operations team continues to optimize the booster compressor system and is targeting an uptime availability of 97 percent, which is expected to provide additional capacity to increase natural gas production from the Cascadura field.
Central Block
The Company completed the CR-3 coiled tubing cleanout and acid stimulation program during August and early September. While the operation resulted in a limited production response, the workover provided additional information regarding the well’s reservoir restrictions and the potential impact of residual drilling damage.
The Company is now preparing a completion program targeting the Karamat sands, which demonstrated encouraging hydrocarbon potential during drilling of the well. The Karamat interval consists of approximately 82 feet of net pay between depths of 6,530 feet and 6,760 feet, and the sands are also present in the Carapal Ridge-1 and Carapal Ridge-2 wells, providing additional potential for future development. Execution of the Karamat completion program is targeted for October 2026.
From May 27, 2026 through August 1, 2026, Central field natural gas volumes were sold under the Atlantic LNG Train 2/3 gas supply contract as Train 4 was down due to planned maintenance. In July 2026, net production of approximately 8.96 MMcf/d was sold at an estimated price of $10.28 per Mcf (net of fees).
Effective September 1, 2026, the Company amended its marketing contract for condensate volumes separated at the Central natural gas processing facility. Similar to its existing legacy crude oil and Ortoire block condensate marketing contracts, the revised contract links pricing to the Brent crude oil benchmark, replacing the previous WTI-linked pricing. Brent-referenced realized pricing for Trinidad liquids has historically traded at a narrower discount to benchmark than pricing under the previous WTI-linked contract, and the change is expected to support improved realized pricing for these volumes going forward. Net Central block condensate sales volumes separated at the facility averaged 152 bbls/d in July 2026 and 96 bbls/d in August 2026.
