Touchstone Exploration Targets Growth Momentum with Shell Central Block Deal – Cavendish

Touchstone Exploration
[shareaholic app="share_buttons" id_name="post_below_content"]

Touchstone Exploration (LON:TXP) has delivered its first quarter 2025 results, with Cavendish highlighting several strategic developments that position the company for future growth. Despite a temporary dip in production, the company is making decisive moves to strengthen its asset base and unlock value for shareholders.

For the quarter ending March 31, Touchstone achieved an average production of 4,317 barrels of oil equivalent per day (boepd), generating revenues of US$11.1 million. While production saw a natural decline compared to the previous quarter, the company successfully offset part of this with new production from its Cascadura-2ST1 and Cascadura-3ST1 wells, which came online in November 2024.

James McCormack, Director of Research at Cavendish, stated: “The STCBL transaction is expected to add 2,000boepd of low decline net production, with opportunities to increase production via infill and exploration drilling and facility optimisation.” He noted that Touchstone has assessed the net 2P reserves at 5.6 million barrels of oil equivalent, which highlights the value of the acquisition priced attractively at US$5.1 per barrel.

The company has also secured a US$30 million six-year term loan and raised £15.375 million through a private placement. These funds will be used to fully finance the Shell Trinidad Central Block acquisition and support the company’s 2025 investment plans, which include drilling the Cascadura-4ST1 and Cascadura-5 wells and initiating development at the newly acquired Central Block.

Drilling operations at Cascadura-4 faced temporary delays due to rig repairs and wellbore instability but are scheduled to resume by the end of May. This sets the stage for upcoming production additions later in the year, aligning with the company’s growth strategy.

Touchstone ended the quarter with a net debt of US$33.3 million and a cash balance of US$5.7 million. Despite the temporary operational challenges, Cavendish maintains a target price of 53.1p, representing a significant 176% upside from the current share price of 19.3p.

On a Final Note

Touchstone Exploration is navigating short-term challenges while firmly positioning itself for long-term success. The strategic acquisition of the Shell Central Block, coupled with planned development activities and secured financing, supports Cavendish’s positive outlook on the company’s growth trajectory.

Share on:
Find more news, interviews, share price & company profile here for:

    Touchstone Exploration launches £0.68 million retail offer at 11 pence per share

    Touchstone Exploration has launched a retail offer to raise up to £0.68 million through the issue of up to 6.18 million new shares at 11 pence each via the BookBuild

    Touchstone Exploration raises £6.32m in private placement to fund 2025 capital programme

    Touchstone Exploration has conditionally raised £6.32 million through a private placement of 57.5 million new shares at 11 pence each. The Company may raise an additional £0.68 million via a

    A shift in natural‑gas dynamics invites a fresh look at supply constraints

    Rising LNG flows and slightly lower U.S. output are tightening the natural‑gas balance.

    Trinidad and Tobago at an energy juncture

    Deepwater discoveries and political momentum are reigniting investor interest in Trinidad and Tobago’s long-established energy sector.

    Touchstone refines its focus with Cascadura advancing

    Touchstone narrows its focus to Cascadura, exiting non-core assets to channel capital and energy into its most promising development.

    Cascadura well positions Touchstone for added production

    Touchstone advances its Cascadura programme, converting technical challenges into new production opportunities in Trinidad.

    Search

    Search