Touchstone's January, February sales at 4,778 boe/d

Executive Summary

• Touchstone Exploration Inc. provided a comprehensive operational update regarding its assets in Trinidad and Tobago, highlighting the successful tie-in and startup of the Carapal Ridge 3 (CR-3) well, increased throughput in the Central block, and progress on drilling campaigns in its oil blocks.
• The CR-3 well, the first new well in the field in over 17 years, began flowing natural gas and condensate on March 28, 2026, contributing to a rise in Central block gross throughput to approximately 21.5 million cubic feet per day.
• The company reported average net sales volumes of 4,778 barrels of oil equivalent per day for January and February 2026, while detailing the successful completion of run testing for the Cascadura booster compressor, which is expected to arrive in April 2026 to mitigate pipeline pressure constraints.

Key Details

• Carapal Ridge 3 (CR-3) Well:
  • Successfully tied into the Central block natural gas facility and brought on stream on March 28, 2026.
  • Currently flowing natural gas and 58-degree-API condensate while recovering drilling and completion fluids.
  • Demonstrated intermittent peak rates of up to 5.7 million cubic feet per day during liquid offloading in the current cleanup phase.
  • Expected to accelerate the fulfillment of gas volumes under deliver-or-pay requirements, enabling a shift toward higher-priced LNG sales contracts.
• Central Block Operations:
  • Gross natural gas throughput (excluding Coho-1 volumes) increased from ~16 million cubic feet per day (pre-acquisition) to ~19 million cubic feet per day via optimization, and further to ~21.5 million cubic feet per day following CR-3 startup.
  • Average natural gas throughput for January and February 2026 was approximately 3,435 barrels of oil equivalent per day (net 2,233 barrels of oil equivalent per day).
  • Realized LNG pricing (prior to fees) was $6.74/MMBtu in January and an estimated $3.98/MMBtu in February.
  • Ortoire volumes (Cascadura and Coho) continue to receive a fixed natural gas price of $2.33/MMBtu.
• Cascadura Compressor:
  • Booster compressor successfully completed two-day run testing in Houston, Texas, in February 2026.
  • Unit is in transit to Trinidad, with port arrival expected in April 2026 and commissioning targeted for May 2026.
  • Designed to mitigate elevated sales pipeline pressures (currently 650–750 psi) to improve production rates and operational stability.
• Oil Block Drilling (WD-8 and WD-4 Blocks):
  • Initiated a four-well drilling campaign in early March 2026 following a December 2025 asset swap.
  • Well FR-1835: Spudded March 7, 2026; reached total depth March 16, 2026. Wireline logs indicate approximately 290 feet of net hydrocarbon pay. Drilled ahead of schedule with costs covered by the operator (excluding ancillary equipment).
  • Well FR-1836: Spudded March 26, 2026; currently drilling.
  • Rig is expected to demobilize after FR-1836 reaches total depth for completion and tie-in, then move to the WD-4 block in Q3 2026 to drill two additional wells.
• Production Volumes:
  • Average net sales volumes for January and February 2026 were 4,778 barrels of oil equivalent per day.
  • Composition: ~20.5 million cubic feet per day of natural gas and 1,357 barrels per day of crude oil and liquids.
• Working Interests:
  • Central block: 65% operating working interest (Touchstone), 35% (Heritage Petroleum Company Ltd.).
  • Cascadura field (Ortoire block): 80% working interest (Touchstone), 20% (Heritage).
  • WD-8 block: 100% working interest via lease operatorship agreement with Heritage.

Notable Quotes

• "Our current strategy is twofold: maximizing the utilization of existing excess capacity in our processing facilities through targeted drilling and deploying capital toward our highest-priced sales contracts to optimize project returns. The CR-3 well achieves both objectives, adding immediate production while allowing us to benefit from strengthening LNG [liquefied natural gas] market fundamentals and improved pricing." — Paul R. Baay, President and CEO
• "As the first new well in the field in over 17 years, our team was successful in bringing CR-3 on line and into the plant. In line with the performance of historical wells in this field, the cleanup process is expected to take several weeks, and we will provide further updates as stabilized rates are established." — Paul R. Baay, President and CEO
• "The Central block acquisition has successfully marked our entry into the LNG market. By increasing throughput without incurring additional incremental operating costs, we are leveraging our infrastructure to capture higher-value sales." — Paul R. Baay, President and CEO