Touchstone Exploration provides an update on its recent operational activities in the Republic of Trinidad and Tobago. Since the Company's September operational update, activities have focused on completing the Karamat interval at the Central block's Carapal Ridge-3 well ('CR-3'"), advancing the WD-4 development drilling campaign and improving production reliability at the Cascadura field.
Highlights
- CR-3 Karamat completion: The Company executed the Karamat sands completion at CR-3 during October. Cleanup and flow testing operations commenced October 19, 2026, with the well recording separate gross average natural gas test rates of approximately 5.0 MMcf/d and 6.8 MMcf/d at different choke settings during extended testing, as described below. These preliminary test rates are not necessarily indicative of stabilized production or long-term performance. The well is connected to the Central block gas processing facility for export to sales.
- WD-4 drilling: The first well in the Company's two-well WD-4 block development drilling campaign, PS-623, reached total depth on October 4, 2026. The Company's interpretation of wireline logs indicates approximately 450 feet of potential net hydrocarbon pay. The well has been completed and placed onstream at an initial field-estimated flush production rate of approximately 387 bbls/d of crude oil during its first 24 hours of production. Flush production rates are not indicative of stabilized rates, and production is expected to decline as the well is produced. The drilling rig has mobilized to the second drilling location, where the next well is expected to spud shortly.
- Cascadura production optimization: The Cascadura booster's compressor uptime availability improved to approximately 98 percent in September. The Company plans to undertake three optimization workovers before year-end: a coiled tubing cleanout at Cascadura-3ST1, an oil zone recompletion at Cascadura-5, and a workover at Cascadura Deep-1 to commingle two previously producing Herrera zones.
- Central block optimization: The Company is planning a workover at Baraka-1 to evaluate a lower Herrera reservoir interval previously tested by a prior operator.
- Production: Third quarter 2026 sales volumes averaged 4,485 boe/d, comprising approximately 19.4 MMcf/d of natural gas and 1,259 bbls/d of crude oil and liquids.
Paul R. Baay, President and Chief Executive Officer, commented:
'It is encouraging to see the early test results from both the CR-3 and PS-623 wells, but it will take some time before we can better assess production decline behaviour and stabilized production rates from the wells. While it remains early days, the initial CR-3 well results may indicate an additional natural gas opportunity for us in the region that could help utilize available processing capacity at the Central block. We will provide updates as appropriate during ongoing testing and production.'
Central Block
During October 2026, the Company executed the Karamat sands completion program at CR-3. The operation involved installing a retrievable bridge plug above the Herrera reservoir and perforating 62 feet of the Karamat reservoir interval at depths between 6,540 feet and 6,619 feet.
Following completion, the well was opened for a cleanup and well test on October 19, 2026. During cleanup operations, CR-3 recovered completion fluids and produced approximately 7.7 MMcf/d of natural gas at a flowing wellhead pressure of 650 psi on a 70 percent open choke. Following cleanup operations, the shut-in wellhead tubing pressure built to approximately 2,600 psi and the well was opened for an isochronal well test at various choke sizes. During the four-day extended well testing operations, CR-3 produced at an average rate of approximately 5.0 MMcf/d of natural gas at a flowing wellhead pressure of approximately 500 psi on a 60 percent open choke and 6.8 MMcf/d of natural gas at a flowing wellhead pressure of approximately 400 psi on an 80 percent open choke. Minimal amounts of condensate are being produced with no formation water observed to date. The well is connected to the Central block gas processing facility for export to sales at the Atlantic LNG facility, currently under the Train 4 sales agreement. Well testing is continuing with downhole pressure recorders installed for a further flow and pressure build-up test.
The initial flow rates were observed under cleanup and well testing conditions and are not necessarily indicative of long-term well performance (see "Advisories - Production Testing and Flush Production"). The Company will continue to evaluate well performance and decline curves as production operations progress.
CR-3 represents the Company's first well targeting the Karamat reservoir at the Central block. The Karamat reservoir is present across the wells at the Carapal, Baraka and Baraka East fields of the Central block. Subject to further geological and engineering evaluation of the CR-3 results, the Karamat interval may provide an additional development opportunity alongside the Company's ongoing Herrera reservoir development program at the Central block. The CR-3 results do not establish comparable reservoir quality, deliverability or commercial development potential at other locations.
The Company is also planning a workover at the Baraka-1 well to evaluate a lower interval of the Herrera reservoir that was previously tested over a three-day period by a prior operator at gross peak rates of approximately 270 bbls/d of oil and 1.3 MMcf/d of natural gas. The planned workover is intended to assess the production potential of this interval and further evaluate the deeper oil potential of the Central block.
WD-4 Block Drilling
The Company commenced its two-well WD-4 development drilling campaign with the spud of PS-623 on September 19, 2026. The well reached total depth of 6,500 feet on October 4, 2026, with the Company's interpretation of wireline logs indicating approximately 450 feet of potential net hydrocarbon pay between depths of 3,326 feet and 6,250 feet.
PS-623 was completed across 40 feet in the Cruse formation and the well has been placed onstream at a field-estimated flush production rate of 387 bbls/d of oil with a one percent water cut flowing on a 6/32-inch choke at a flowing wellhead pressure of 1,040 psi during its first 24 hours of production. Flush production rates reflect the elevated rates typically observed when a well is first placed on production and are expected to decline as production progresses. The Company will continue to monitor PS-623 performance to establish a decline curve and stabilized production rate (see "Advisories - Production Testing and Flush Production").
Preparations for the second well in the campaign are underway, with the drilling rig mobilized to the second drilling lease and expected to begin drilling the well imminently. As previously announced, the turnkey drilling costs associated with the second well will be covered by the drilling contractor, reducing the Company's capital exposure while advancing development of the WD-4 field.
Cascadura Area (Ortoire Block)
The Cascadura booster compressor has continued to demonstrate improved operating reliability following initial post-commissioning troubleshooting. Uptime availability improved to approximately 98 percent in September, supporting growth in average gross natural gas production of approximately 9.7 MMcf/d in July, 12.5 MMcf/d in August and 13.0 MMcf/d in September.
The improved compressor reliability provides a more stable operating platform for ongoing production optimization activities and supports the Company's efforts to optimize production from the Cascadura field.
The Company plans to undertake three Cascadura optimization workovers before year-end 2026. The program includes a coiled tubing cleanout at Cascadura-3ST1, a recompletion of the oil zone at Cascadura-5, and a workover at Cascadura Deep-1 to commingle two previously producing Herrera reservoir zones. The Cascadura Deep-1 workover involves removing a plug that was temporarily isolating the lower Herrera zone that was on production from September 2023 to June 2024 and was subsequently isolated to produce the upper Herrera zone. The workover is intended to enable commingled production from both Herrera zones. These activities are intended to enhance well productivity, access additional producing intervals and further optimize production from the Cascadura field.
Source: Touchstone Exploration
