Touchstone's Cascadura-4ST2 well reaches 5,896 feet TD

Executive Summary

• Completed drilling of Cascadura‑4ST2X (Cas‑4ST2X) to 5,896 ft; well encountered gas‑charged Herrera Gr7bc sands but was stuck, prompting completion using casing and drill string.
• Production averaged 5,152 boe/d in August 2025, with 21.7 MMcf/d of natural gas and 1,529 bbl/d of oil & liquids.
• Signed a sale‑and‑purchase agreement to divest the non‑core Fyzabad oil property; consideration is three turnkey drilling wells to be executed by the buyer on Touchstone’s WD‑8 and WD‑4 blocks, with closing expected Q4 2025.

Key Details

• Drilling Operations – Cascadura‑4ST2X:
• Rig: Star Valley No. 205; spud 16 Aug 2025, TD 5,896 ft on 22 Sept 2025 (planned ~6,100 ft).
• Encountered gas‑charged Herrera Gr7bc sands; loss of circulation led to early termination.
• Drill string stuck during pull‑out; well will be completed using a combination of casing and the drill string to access gas‑charged intervals.

• No open‑hole logs obtained; offset data and real‑time drilling confirm intersection with target reservoir sand consistent with geological model.

• Cascadura Development Outlook:

• Completion on Cascadura‑5 to begin immediately; tie‑in equipment on site, testing through existing natural gas facility.
• Cas‑4ST2X final completion and tie‑in pending arrival of service rig and equipment.
• Pad B drilling rig slated to move to Carapal Ridge‑3 (CR‑3) in Central block; site ~60 % built, drill‑ready expected by end‑Oct 2025.

• Compressor secured for Cascadura facility; project completion targeted Q2 2025.

• Production Update – August 2025:

• Average net production: 5,152 boe/d (down from 5,300 boe/d in July, up from 5,088 boe/d in June).
• Gas: 21.7 MMcf/d (≈3,623 boe/d).

• Oil & liquids: 1,529 bbl/d.

• Strategic Divestiture – Fyzabad Property:

• Sale and purchase agreement executed with a Trinidad‑based third party for the non‑core Fyzabad oil asset (100 % working interest).
• Consideration: three turnkey drilling wells to be drilled by buyer on Touchstone’s WD‑8 and WD‑4 blocks; Touchstone will supply ancillary drilling/completion equipment.
• Two wells scheduled before year‑end 2025; third well planned for Q1 2026.

• Expected closing: Q4 2025, subject to regulatory approvals.

• Leadership Quote (Paul R. Baay, President & CEO):

  “With drilling complete on Pad B at Cascadura, we are moving rapidly into the completion and tie‑in phase. While Cas‑4ST2X presented challenges due to re‑entering a previous wellbore, the systems implemented on the Cas‑5 well have proven effective. We remain confident in our ability to drive repeatable cost and efficiency gains at Cascadura and across our Central block program.”

Materiality Assessment: Material – Positive (significant operational progress, ongoing production, and a strategic divestiture that reshapes the asset portfolio).