Touchstone Exploration boosted production and cash flow through new Trinidad oil wells, stronger gas pricing, and ongoing infrastructure upgrades.
Touchstone Exploration Inc. has provided a comprehensive operational update for the first quarter of 2026 and subsequent activities in May 2026, highlighting significant advancements in its Trinidad and Tobago assets. The company's strategic focus remains on converting reserves into near-term cash flow through disciplined capital allocation and optimizing production across its portfolio.
A key development is the successful completion and commencement of production from the FR-1835 and FR-1836 development wells on the WD-8 block in mid-May 2026. These wells have collectively averaged approximately 175 barrels per day (bbls/d) of medium-gravity crude oil, performing as anticipated and providing immediate, stable cash flow that capitalizes on current strong global crude oil prices. Notably, the funding for these wells was facilitated by a strategic exchange of the Fyzabad asset in the previous year, demonstrating effective capital management.
In terms of natural gas operations, progress continues at the Cascadura facility, where the booster compressor was successfully delivered in April. Mechanical and electrical installations are on schedule, with commissioning anticipated to begin in June 2026, which is expected to unlock further natural gas production capacity. Additionally, the company is set to benefit from an optimized gas pricing outlook due to a scheduled 54-day maintenance shutdown of Atlantic LNG Train 4, which commenced on May 26, 2026. During this period, gas volumes from Touchstone's Central block will be redirected to Atlantic LNG Train 2/3 and the domestic market, a move expected to enhance realized natural gas pricing.
Further operational efforts include preparing for a coiled tubing cleanout and acid stimulation program at the Carapal Ridge 3 (CR-3) well. This intervention aims to address an inflow restriction and maximize the well's production performance, pending the availability of local services.
Financially, the first quarter of 2026 saw Touchstone achieve average daily production of 4,657 barrels of oil equivalent per day (boe/d), representing an 8% increase year-over-year. This growth was largely attributed to production from the Central field (2,131 boe/d), which successfully mitigated natural declines observed in legacy assets. Petroleum and natural gas sales for the quarter totaled 12.5 million, marking a 14% increase from the preceding quarter. This revenue growth was driven by an 18% increase in realized natural gas prices and a 25% recovery in realized crude oil pricing, with March 2026 crude oil volumes averaging 86.58 per barrel.
Overall, Touchstone Exploration's operational update reflects a period of active development and strategic optimization in Trinidad and Tobago, an area where it stands as the largest independent onshore oil and gas producer. The successful execution of drilling programs, coupled with strategic responses to market conditions and infrastructure developments, positions the company for continued cash flow generation and enhanced production efficiency in the coming months.
