TOUCHSTONE EXPLORATION INC - Update on the recent acquisition of Shell Trinidad Central Block Limited l136x

Touchstone Exploration Inc. (LSE:TXP) delivered a comprehensive investor update highlighting its strategic transformation and near-term growth catalysts. The company reaffirmed its focus on onshore Trinidad operations, ed by robust infrastructure, a favourable regulatory environment, and a stable production base. Key financial results for Q1 include 4,300 BOE/d production and over 50 million BOE in 2P reserves, underpinning a 13-year reserve life. The recent $23M Central Block acquisition marks a pivotal shift, enabling access to higher-priced LNG markets and expanding production capacity to 72,000 BOE/d. The company is launching a fully funded "drill-to-fill" programme, aiming to convert significant reserves into cash flow through back-to-back well development. Despite historic drilling challenges and production declines at Cascadera, Touchstone has revamped its drilling strategy, optimised well designs, and brought in top-tier consultants to improve well performance and cost-efficiency. Management is targeting Q3–Q4 2025 for increased production volumes, ed by a continuous drilling schedule and upgraded infrastructure. Investors were also reassured on pricing: Central Block gas commands rates from day one, with further uplift expected post-2027. With a strong balance sheet, control over three gas plants, and an expanded acreage portfolio, Touchstone is well-positioned to deliver enhanced EBITDA, margin growth, and long-term shareholder value. The update reflects Touchstone’s strategic evolution from exploration to production-led cash generation, aligning its asset base with market opportunities and investor expectations. j72m