Touchstone Exploration Inc. ("Touchstone") (TSX, LSE: TXP) provides an operational update on its Ortoire block activities, including drilling results from the Cascadura-4 development well ("Cas-4ST2X").
Cas-4ST2X Well Results
Operations at Cascadura-4ST2 resumed on August 16, 2025, utilizing Star Valley Drilling Rig #205, and the
well reached a total depth of 5,896 feet on September 22, 2025. The well, now designated Cascadura4ST2X, was originally programmed to evaluate the Herrera Gr7bc sands to a depth of approximately 6,100 feet. However, after encountering gas-charged sands in the lower portion of the well, circulation was lost, leading the Company to conclude drilling operations earlier than planned.
During the pull-out, the drill string became stuck and, despite extensive recovery efforts, could not be freed. The Company has elected to complete the well for production using a combination of casing and the drill string, enabling access to the gas-charged intervals identified while drilling. Although open-hole logs could not be acquired, offset well data and real-time drilling information confirm that the well intersected Herrera Gr7bc sands consistent with the Company’s geological model.
The primary objective of the well was the Herrera Gr7bc sands, which are widespread across the Cascadura structure. Cascadura-4ST2X represents the third well drilled into the “A” block of Cascadura to encounter sands within the targeted reservoir.
Cascadura Development
Completion operations on the Cascadura-5 well will immediately commence. All tie-in equipment is on location and the well will be tested directly through the Cascadura natural gas facility following completion. Cas-4ST2X will undergo final completion and tie-in once equipment and a service rig are on site.
Following completion of Pad B operations, the drilling rig will move to the Central block location identified as Carapal Ridge-3 ("CR-3"), where site construction is approximately 60 percent complete. The location is expected to be drill-ready by the end of October.
In parallel, the Company has secured a compressor for the Cascadura facility to further enhance natural gas processing. The project is currently expected to be completed in the second quarter of 2025.
Paul R. Baay, President and Chief Executive Officer, commented:
"With drilling complete on Pad B at Cascadura, we are moving rapidly into the completion and tie-in phase.
While Cas-4ST2X presented challenges due to re-entering a previous wellbore, the systems implemented on the Cas-5 well have proven effective. We remain confident in our ability to drive repeatable cost and efficiency gains at Cascadura and across our Central block program."
Production update
Production volumes averaged 5,152 boe/d in August 2025, compared with 5,300 boe/d in July and 5,088 boe/d in June. August volumes comprised 21.7 MMcf/d of net natural gas production (3,623 boe/d) and 1,529 bbls/d of net crude oil and liquids production.
Strategic Divestiture
Touchstone has entered into a sale and purchase agreement to dispose of its non-core Fyzabad oil property to a third-party Trinidad-based company. Fyzabad averaged 37 bbls/d of net production in August 2025 and had limited scalability within the Company's portfolio.
Transaction consideration consists of three turnkey drilling wells to be drilled across Touchstone's WD-8 and WD-4 blocks. Under the agreement, the purchaser will drill the wells while Touchstone supplies certain ancillary drilling and completion equipment.
Two wells are currently scheduled for drilling before year-end 2025, with the third well planned for the first quarter of 2026. Closing of the Fyzabad disposition is expected in the fourth quarter of 2025, subject to customary regulatory approvals.