Energy

Touchstone Exploration Reports Drilling, Workover and Production Update

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Touchstone Exploration Inc. has provided an operational update covering development, workover and production optimisation activities during August and early September 2026 across its WD-4, Ortoire and Central blocks in Trinidad and Tobago.

The update includes the mobilisation of a drilling rig for a two-well WD-4 campaign, production optimisation work at Cascadura and a limited response from the Carapal Ridge 3 well, where the company is preparing a further completion programme.

#WD-4 drilling campaign

Touchstone has completed construction of two WD-4 drilling locations, and the rig is now on location. The company expects the first well in the two-well campaign to spud in mid-September 2026.

The wells are commitment wells under the WD-4 Lease Operatorship Agreement. Touchstone said the drilling contractor will cover the turnkey drilling costs associated with the second well. The campaign is intended to target additional oil production, although its drilling and production outcomes remain subject to the company's stated risks and uncertainties.

#Cascadura optimisation and compressor operations

At the Cascadura-2ST1 well, Touchstone completed a solvent squeeze treatment aimed at improving productivity. The company reported incremental production gains and said it would assess similar treatments for other Cascadura wells during the second half of 2026 where appropriate.

A workover at Cascadura-3ST1 and a recompletion at Cascadura-5 are planned for October 2026.

The Cascadura booster compressor began operating on July 9, 2026. Its uptime availability improved from approximately 57 percent in July to 73 percent in August following initial troubleshooting. Over the same period, average gross natural gas production from the Cascadura field increased from approximately 6.6 MMcf/d in June to 9.7 MMcf/d in July and 12.6 MMcf/d in August.

Touchstone is targeting uptime availability of 97 percent. The company said that target is expected to provide additional capacity for natural gas production, but its forward-looking statements are subject to assumptions, risks and uncertainties, and actual results could differ materially.

#CR-3 workover and Karamat completion plans

Touchstone completed a coiled tubing cleanout and acid stimulation programme at the Carapal Ridge 3, or CR-3, well during August and early September. The work produced a limited production response and did not resolve reservoir damage associated with drilling operations.

The company is preparing a completion programme aimed at the uphole Karamat sands, with execution targeted for October 2026. Touchstone said the Karamat interval contains approximately 82 feet of net pay between depths of 6,530 feet and 6,760 feet and is also present in the Carapal Ridge-1 and Carapal Ridge-2 wells. The potential success and future development of the completion remain forward-looking matters.

#Central block sales and marketing changes

From May 27, 2026 through August 1, 2026, Central block natural gas volumes were sold under the Atlantic LNG Train 2/3 gas supply contract while Train 4 was unavailable for planned maintenance.

In July 2026, approximately 8.96 MMcf/d of net production was sold at an estimated price of $10.28 per Mcf, net of fees. Touchstone also reported net Central block condensate sales averaging 152 bbls/d in July 2026 and 96 bbls/d in August 2026.

Effective September 1, 2026, the company amended its marketing contract for condensate separated at the Central natural gas processing facility. Pricing is now linked to the Brent crude oil benchmark rather than the previous WTI-linked arrangement. Touchstone said Brent-referenced realised pricing for Trinidad liquids has historically traded at a narrower discount to benchmark and expects the change to support improved realised pricing going forward. The company did not quantify the expected pricing effect.

#Reported production

Touchstone reported average net sales production of 4,402 boe/d in July 2026. Field-estimated net production averaged 4,392 boe/d in August 2026.

The company states that its boe conversion uses 6 Mcf = 1 bbl for analytical purposes. It also cautions that this conversion does not represent value equivalency at the wellhead and may be misleading when used in isolation.

#Company interests and listings

Touchstone reports a 100 percent working interest in the WD-4 block. In the Cascadura area of the Ortoire block, it holds an 80 percent working interest, with Heritage Petroleum Company Limited holding the remaining 20 percent. Touchstone holds a 65 percent working interest in the Central block, with Heritage holding the remaining 35 percent.

The Calgary, Alberta-based company is listed on the Toronto Stock Exchange and the AIM market of the London Stock Exchange under the symbol TXP.

#Key Takeaways

  • Touchstone has mobilised a rig for a two-well WD-4 campaign, with the first well expected to spud in mid-September 2026.
  • The drilling contractor will cover the turnkey drilling costs associated with the second WD-4 well.
  • The Cascadura booster compressor's uptime improved from approximately 57 percent in July to 73 percent in August.
  • The CR-3 workover generated a limited production response and did not resolve drilling-related reservoir damage.
  • Touchstone is targeting an October 2026 completion programme for the Karamat sands at CR-3.

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Frequently Asked Questions

Touchstone Exploration says activities during August and early September 2026 focused on development, workover and production optimisation programmes across the WD-4, Ortoire and Central blocks. The company has completed construction of two WD-4 drilling locations and mobilised a rig for a two-well campaign. Touchstone expects the first well to spud in mid-September 2026, so the drilling activity described remains forward-looking.
The company says the drilling rig is on location and that the two wells are commitment wells under the WD-4 Lease Operatorship Agreement. Touchstone states that turnkey drilling costs associated with the second well will be covered by the drilling contractor, reducing the company's capital exposure for that well. The source does not provide the total cost of the campaign or its expected financial return.
Touchstone says a solvent squeeze treatment at the Cascadura-2ST1 well demonstrated promising incremental production gains, supporting the potential application of the approach across additional Cascadura wells. The company intends to evaluate and deploy similar treatments during the second half of 2026 where appropriate. The Cascadura-3ST1 workover and Cascadura-5 recompletion are planned for October 2026. The booster compressor commenced operations on July 9, 2026; uptime availability improved from approximately 57 percent in July to 73 percent in August. Touchstone is targeting uptime availability of 97 percent, but its forward-looking statements are subject to assumptions, risks and uncertainties, and the company says actual results could differ materially.
Touchstone says the CR-3 coiled tubing cleanout and acid stimulation programme resulted in a limited production response and did not resolve reservoir damage from drilling operations. The company is preparing a completion programme targeting the uphole Karamat sands, and says execution is targeted for October 2026. The source describes the Karamat interval as consisting of approximately 82 feet of net pay between depths of 6,530 feet and 6,760 feet, but the potential success and future development of the programme remain forward-looking and subject to risks and uncertainties identified by the company.
Net sales production averaged 4,402 boe/d in July 2026, while field-estimated net production averaged 4,392 boe/d in August 2026. In July 2026, approximately 8.96 MMcf/d of Central block natural gas was sold at an estimated price of $10.28 per Mcf, net of fees, under the Atlantic LNG Train 2/3 gas supply contract while Train 4 was down due to planned maintenance. Central block condensate sales volumes averaged 152 bbls/d in July 2026 and 96 bbls/d in August 2026. The source cautions that boe conversion uses 6 Mcf = 1 bbl and does not represent value equivalency at the wellhead.
Effective September 1, 2026, Touchstone amended its marketing contract for condensate volumes separated at the Central natural gas processing facility. The revised contract links pricing to the Brent crude oil benchmark rather than the previous WTI-linked pricing. The company says Brent-referenced realised pricing for Trinidad liquids has historically traded at a narrower discount to benchmark and that the change is expected to support improved realised pricing going forward. This is a forward-looking statement attributed to the company and is subject to assumptions, risks and uncertainties; the source does not quantify the expected pricing impact.
The source identifies Touchstone Exploration Inc. as listed on the Toronto Stock Exchange and the AIM market of the London Stock Exchange under the symbol "TXP". It also gives the trading references as (TSX:TXP) and (AIM:TXP). Touchstone reports a 100 percent working interest in the WD-4 block, an 80 percent working interest in the Cascadura area of the Ortoire block and a 65 percent working interest in the Central block, with Heritage holding the remaining interests in the Ortoire and Central blocks.