Touchstone Exploration Announces pounds sterling6.32 Million (US$8.44 Million) Private Placement and Retail Offer of up to pounds sterling0.68 Million (US$0.91 Million)
Executive Summary
- Touchstone Exploration Inc. conditionally raised £6.32 million (~US$8.44 M) via a private placement of 57,454,545 common shares at 11 pence per share.
- The proceeds, together with a planned retail offer, will fund the revised 2025 capital program and satisfy remaining equity‑raising obligations under its loan agreement.
- Updated 2025 guidance shows lower production (4,700–5,300 boe/d vs. prior 5,600 boe/d), reduced funds flow from operations ($6 M vs. $11 M) and a modest increase in net debt to ~$65 M.
Key Details
- Financing Structure
- Private placement of 57,454,545 new common shares at £0.11 per share (≈ C$0.206).
- Gross proceeds: £6.32 million (≈ US$8.44 million).
- Discount: 2.2 % to the prior‑day closing price of £0.1125.
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Investor rights agreement gives Purebond Limited a right to appoint one non‑executive director while its stake remains >15 %.
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Retail Offer (proposed)
- Up to an additional £0.68 million via Bookbuild Platform for existing shareholders.
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Up to 6,181,818 new shares at the same price; separate announcement pending.
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Use of Proceeds
- Fund revised 2025 capital program: drill one development well on Central block and complete Cascadura gas‑compressor project (target Q2 2026).
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Satisfy remaining equity requirement under Fourth Amended & Restated Loan Agreement with Republic Bank Limited.
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Admission to Trading
- Application filed for listing of the offered shares on TSX and AIM; expected admission by 08:00 GMT, 30 Oct 2025, subject to approvals.
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Shares will represent ~18 % of total share capital post‑admission (pre‑retail offer).
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Updated 2025 Guidance
- Average daily production: 4,700–5,300 boe/d (down ~11 % from prior midpoint).
- Funds flow from operations: ≈ US$6 M (down $5 M vs. previous guidance).
- Capital expenditures: $26 M total (down $2 M; $3 M saved by deferring two crude‑oil wells, +$1 M for Cascadura‑4ST2X).
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Net debt: projected ≈ US$65 M (up $1 M from prior estimate).
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Previous Private Placement Context
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May 8 2025 private placement raised £15.38 M; only £5.05 M actually received. Remaining £10.32 M unlikely to be collected; company will not pursue litigation.
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Management Comments
- CEO Paul R. Baay: financing “fully satisfies” loan obligations and enables continuation of high‑return projects, including Central block drilling and Cascadura compressor installation.
- Highlights strategic benefit of Purebond’s investment and board representation.
Notable Quotes
“This financing fully satisfies our outstanding obligations under our Loan Agreement, positioning us to advance our 2025 capital investment program focused on high‑return projects…” – Paul R. Baay, President & CEO
All forward‑looking statements are subject to risks and uncertainties detailed in the full release.