Touchstone Exploration Provides An Operational Update

• Touchstone Exploration reports successful completion and production startup of two development wells (FR-1835, FR-1836) on the WD-8 block in Trinidad and Tobago.
• Combined average production from these wells is approximately 175 bbls/d of medium-gravity crude oil.
• Well funding was provided by the drilling operator under a strategic asset exchange agreement executed in 2025, requiring no immediate cash capex for these specific wells.
• Atlantic LNG Train 4 scheduled maintenance (May 26 to July 19, 2026) will redirect gas volumes to higher-priced trains or domestic market.
• Cascadura booster compressor commissioning expected in June 2026 to lower wellhead backpressure and mitigate pipeline capacity limitations.
• CR-3 well intervention planned for coiled tubing cleanout and acid stimulation to address inflow restrictions, contingent on equipment availability.

• The news confirms execution of previously announced plans (wells completed mid-May 2026 as per Q1 earnings guidance), making it expected rather than unexpected market-moving information.
• Operational progress is positive for cash flow generation but does not resolve the critical liquidity issues highlighted in the Q1 2026 earnings release ($22.2 million working capital deficit).
• The LNG maintenance window provides a temporary pricing benefit, structurally higher pricing on Train 2/3 compared to Train 4, which supports near-term margins.
• No new financing or debt restructuring terms were announced in this specific update; the company remains in ongoing discussions with lenders regarding covenant breaches.
• Given the "Going Concern" note in Q1 earnings and the persistent working capital deficit, operational wins alone do not materially alter the solvency risk profile for a risk-averse investor.

• Touchstone Exploration Inc. is an oil and gas exploration company focused on Trinidad and Tobago assets.
• Flagship Project: The Central Block acquisition (65% working interest) completed May 2025, adding LNG-linked gas production and significant reserves.
• Legacy Assets: WD-8 block provides crude oil cash flow; Fyzabad property divested in exchange for turnkey drilling wells on WD-8/WD-4 blocks.
• Production Mix: Approximately 71% natural gas with remaining liquids (crude/NGLs); average daily production around 4,657 boe/d in Q1 2026.
• Strategic Focus: Converting reserves into near-term cash flow while optimizing high-return well and facility projects like Cascadura compression.