Touchstone Exploration Inc
TSX:TXP
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Touchstone Exploration Inc
Touchstone Exploration, Inc. engages in the acquisition, exploration, development, production, and sale of petroleum and natural gas. The company is headquartered in Calgary, Alberta and currently employs 78 full-time employees. The firm is active in onshore properties located in the Republic of Trinidad and Tobago. The firm has interests in a number of small undeveloped exploration properties and three larger exploration blocks. The Company’s exploration projects include Ortoire, Cascadura, Chinook, Royston, and natural gas in Trinidad and Tobago. Its main exploration focus is the Ortoire exploration block. The firm owns 80% operated working interest in the Ortoire block. The property covers approximately 44,731 gross acres (35,785 net) on the east side of Trinidad. The second exploration well, Cascadura-1, was sidetracked (ST1) and drilled to a total depth of approximately 6,350 feet. The well at Chinook-1 was drilled to a total depth of approximately 10,039 feet.
Touchstone Exploration, Inc. engages in the acquisition, exploration, development, production, and sale of petroleum and natural gas. The company is headquartered in Calgary, Alberta and currently employs 78 full-time employees. The firm is active in onshore properties located in the Republic of Trinidad and Tobago. The firm has interests in a number of small undeveloped exploration properties and three larger exploration blocks. The Company’s exploration projects include Ortoire, Cascadura, Chinook, Royston, and natural gas in Trinidad and Tobago. Its main exploration focus is the Ortoire exploration block. The firm owns 80% operated working interest in the Ortoire block. The property covers approximately 44,731 gross acres (35,785 net) on the east side of Trinidad. The second exploration well, Cascadura-1, was sidetracked (ST1) and drilled to a total depth of approximately 6,350 feet. The well at Chinook-1 was drilled to a total depth of approximately 10,039 feet.
Messy Quarter: Q2 results were impacted by the Central Block acquisition, with only a partial period of new revenue but full costs included, creating a distorted financial picture.
Production Stability: Average Q2 production was about 4,300 BOE/d, rising to 5,100 in June and 5,300 in July, indicating more stable daily output.
Debt Jump: Net debt doubled due to the $30 million Central Block acquisition; management expects to focus on debt reduction with future cash flow.
Project Delays: Cascadura wells originally guided to come online early in the year are now expected in October, pushing production and funds flow into Q4.
Cost Reductions: Central Block monthly run rate has already been cut from $1.5 million to $350,000–$500,000, with further savings expected as onetime expenses drop off.
Compressor Investment: A $6 million compressor project at Cascadura is underway, expected to stabilize and increase production by about 5 million cubic feet per day from Q2 2025.
LNG Price Upside: Current gas prices at Central Block are lower than anticipated due to contract structure, but higher LNG-linked prices are expected from May 2027 or with increased production.
Growth Outlook: Five new wells are slated to come on stream by year-end, with further drilling and development expected to drive output and cash flow in 2025 and beyond.
