Touchstone Exploration Inc. (LON:TXP) has provided 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, Touchstone Exploration 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.
