Touchstone Exploration reported stronger financial results in the second quarter of 2026 as higher gas prices and lower operating costs improved cash flow.
Petroleum and natural gas sales reached almost US$30 million in the first half, while funds flow from operations was about US$9 million. Around US$7 million of that was generated in the second quarter.
Natural gas sales were just over US$17 million in Q2, up around 40% from Q1. Operating netbacks increased by almost 77% to just under US$25.
The improvement was driven mainly by higher gas prices, including sales from the Central Block into higher-priced LNG markets. Touchstone expects the existing Train 4 contract to expire in May 2027, when Central Block gas will move to the higher-priced Train 23 contract already in place.
The company is also working to increase production. A booster compressor installed at Cascadura has improved operating performance, with run time rising above 90% in September.
Further production is planned from Cascadura, Central Block and the WD4 and WD8 oil blocks. Touchstone is also carrying out recompletions and other low-cost work to increase output from existing wells.
A recompletion at Baraka East increased production from around 0.3 million cubic feet per day to more than 2 million cubic feet per day, highlighting the potential to increase output from existing assets without major new infrastructure.
Touchstone has around 75,000 barrels of oil equivalent per day of processing capacity, compared with current production of around 5,000 barrels of oil equivalent per day. This gives the company significant spare capacity as new production comes on stream.
Touchstone Exploration Inc (LON:TXP) is a Canadian-based, international upstream oil and gas company currently active in the Republic of Trinidad and Tobago. Primera Oil and Gas is the Trinidadian subsidiary of Touchstone.
