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Touchstone Exploration Provides Operational Update, Showcases Growth in Trinidad and Tobago

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#Touchstone Exploration Provides Operational Update, Showcases Growth in Trinidad and Tobago

Touchstone Exploration Inc. has released an operational update highlighting key developments in its activities in Trinidad and Tobago. This update includes the successful tie-in of the Carapal Ridge 3 (CR-3) well and increased natural gas throughput from the Central block, reflecting the company’s commitment to enhancing production and optimizing returns.

#Successful Launch of Carapal Ridge 3 Well

The CR-3 well was officially brought onstream on March 28, 2026, and is currently operational at the Central block facility, contributing both natural gas and condensate as it continues to recover drilling and completion fluids. Initial performance indicates that the well is demonstrating peak flow rates of up to 5.7 million cubic feet per day (MMcf/d) during its cleanup phase.

#Increased Throughput at Central Block

Since acquiring the Central block, the natural gas throughput has risen significantly from approximately 16 MMcf/d to around 21.5 MMcf/d. This increase is attributed to efficient optimization strategies that Touchstone implemented post-acquisition. The enhancements are expected to facilitate the growth of gas sales, particularly under higher-priced liquidity contracts.

#Drilling Campaign Advancements

Touchstone also reported the successful drilling of the FR-1835 well in the WD-8 block, which encountered about 290 feet of net pay. This drilling effort is part of a broader four-well campaign that aims to bolster production momentum across the company's oil blocks. The operations are being closely executed following the strategic asset swap completed in late 2025.

#Upcoming Cascadura Compressor Installation

In addition to these advancements, the company announced that the Cascadura facility booster compressor has successfully completed run testing and is en route to Trinidad, with installation expected by May 2026. This compressor aims to alleviate current pressure challenges in the sales pipeline, which are currently impacting production rates.

#Production and Market Outlook

For January and February 2026, Touchstone reported average net sales volumes of approximately 4,778 barrels of oil equivalent per day (boe/d), comprising 20.5 MMcf/d of natural gas and over 1,300 barrels of crude oil and liquids per day. The projected pricing trends indicate strengthening LNG market dynamics that the company anticipates will positively influence its revenue flows.

#Key Takeaways

  • The Carapal Ridge 3 well began production on March 28, 2026, boosting natural gas throughput at the Central block.
  • Gas throughput increased from 16 MMcf/d to approximately 21.5 MMcf/d due to successful optimization strategies.
  • The FR-1835 well showed promising results, with 290 feet of net hydrocarbon pay, as part of a four-well drilling campaign.
  • The Cascadura compressor is expected to enhance operational stability upon its anticipated arrival in April 2026.
  • Average net sales volumes for early 2026 were reported at 4,778 boe/d, underscoring production capabilities amidst improving market conditions.

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Frequently Asked Questions

The successful tie-in and commencement of production from the Carapal Ridge 3 well is a notable achievement for Touchstone Exploration, marking a significant addition to the company's output. This development is expected to contribute positively to the company's throughput and overall production capacity, aligning well with its strategy to enhance gas sales under higher-priced contracts.
Since the acquisition of the Central block, Touchstone has successfully increased gas throughput from approximately 16 MMcf/d to around 21.5 MMcf/d. Such improvements reflect effective optimisation strategies that can potentially lead to enhanced revenue generation, particularly as LNG market conditions appear to be strengthening.
The installation of the Cascadura booster compressor is anticipated to significantly enhance production stability by reducing wellhead backpressure. This development is crucial for maximising output efficiency, potentially leading to increased revenue as production rates improve.
The successful drilling of the FR-1835 well with substantial net hydrocarbon pay demonstrates ongoing growth potential for Touchstone. With a proactive four-well drilling campaign underway, the company is likely to boost its production capacity and economic viability in the near term.
The strengthening LNG market, evidenced by improving natural gas prices, is favourable for Touchstone's operations. Recent pricing trends suggest that the company could benefit significantly from its production, particularly under higher-valued LNG contracts.
The ongoing optimisation program at the Central block aims to increase throughput while reducing operating costs. This strategic focus on operational efficiency is vital for enhancing profitability, particularly during a time when demand for LNG is on the rise.
Touchstone's strategic disposition of non-core assets, coupled with targeted drilling in key areas, is designed to facilitate low-risk production growth. This balanced approach positions the company to enhance its market footprint and respond effectively to evolving energy market dynamics.
Holding an 80 percent interest in the Cascadura field aligns well with Touchstone's strategy to leverage its resources for growth. The potential for increased production and revenue from this field bolsters the company's operational capabilities, especially in a competitive LNG market.