Touchstone Exploration has provided an update on its recent operational activities in the Republic of Trinidad and Tobago. The Company's current strategy is twofold: maximizing the utilization of existing excess capacity in its processing facilities through targeted drilling and deploying capital toward its highest-priced sales contracts to optimize project returns.
Highlights
- Carapal Ridge 3 onstream: The Carapal Ridge 3 ("CR-3") well was successfully tied into the Central block natural gas facility and brought onstream on March 28, 2026. The well is currently flowing natural gas and condensate as it continues to recover drilling and completion fluids.
- Central block throughput growth: Since the Central block acquisition, gross natural gas throughput (excluding Coho-1 volumes) has increased from approximately 16 MMcf/d to 19 MMcf/d through optimization, rising further to approximately 21.5 MMcf/d following the startup of CR-3. During the current cleanup phase, CR-3 has demonstrated intermittent peak rates of up to 5.7 MMcf/d during liquid offloading.
- Cascadura compressor progress: The Cascadura facility booster compressor successfully completed run testing in Houston. The unit is currently in transit to Trinidad, with arrival at port expected in April 2026 and commissioning targeted for May 2026.
- Oil block drilling: The Company successfully drilled the FR-1835 well on the WD-8 block, encountering approximately 290 feet of net pay. The drilling rig has since spudded the second well in a four-well campaign.
- Production update: Average net sales volumes for January and February 2026 were 4,778 boe/d, consisting of approximately 20.5 MMcf/d of natural gas and 1,357 bbls/d of crude oil and liquids.
Paul R. Baay, President and Chief Executive Officer, commented:
'Our current strategy is twofold: maximizing the utilization of existing excess capacity in our processing facilities through targeted drilling and deploying capital toward our highest-priced sales contracts to optimize project returns. The CR-3 well achieves both objectives, adding immediate production while allowing us to benefit from strengthening LNG market fundamentals and improved pricing.
As the first new well in the field in over 17 years, our team was successful in bringing CR-3 online and into the plant. In line with the performance of historical wells in this field, the cleanup process is expected to take several weeks, and we will provide further updates as stabilized rates are established.
The Central block acquisition has successfully marked our entry into the LNG market. By increasing throughput without incurring additional incremental operating costs, we are leveraging our infrastructure to capture higher-value sales. Simultaneously, our legacy crude oil blocks continue to provide low-risk production growth, funded by the strategic disposition of non-core assets last year. Finally, the upcoming Cascadura compressor installation is a vital investment that is expected to stabilize short-term production and extend the long-term economic life of the field."
Central Block
The CR-3 well commenced production on March 28, 2026, and is currently flowing natural gas, 58-degree API condensate, and drilling and completion fluids. While initial deliverability is currently being impacted by mud losses and liquids in the wellbore, the well continues to clean up drilling and completion fluids to the facility. Increased production from CR-3 is expected to accelerate the fulfillment of gas volumes committed under "deliver or pay" requirements, enabling a strategic shift toward the Company's higher-priced LNG sales contracts.
Since the May 2025 acquisition, Touchstone has executed an active optimization program focused on reducing facility operating costs and increasing plant throughput. Average natural gas throughput volumes for the Central block during January and February 2026 were approximately 3,435 boe/d (net 2,233 boe/d).
Realized LNG pricing (prior to fees) for the period was $6.74/MMbtu in January and an estimated $3.98/MMbtu in February, supported by strong Henry Hub pricing early in the year. We expect continued pricing strength in March, driven by international LNG market dynamics and geopolitical supply disruptions. In contrast to the variable LNG market, Ortoire volumes, including Cascadura and Coho production, continue to receive a fixed natural gas price of $2.33/MMbtu.
Cascadura Compressor
The Cascadura booster compressor successfully completed a two-day run test in Houston, Texas during February 2026 and is currently in transit to Trinidad. Upon its expected arrival in April, the unit will be transported to the Cascadura facility for installation, with commissioning targeted for May 2026.
The unit is designed to mitigate elevated sales pipeline pressures, which currently range from 650 to 750 psi and constrain production. By reducing wellhead backpressure, the compressor is expected to improve both production rates and overall operational stability at the facility.
Oil Blocks
Following the December 2025 asset swap of the non-core Fyzabad property for three turnkey development wells, the Company began a four-well drilling campaign on the WD-8 and WD-4 blocks in early March 2026.
The first well, FR-1835, was spud on March 7, 2026 and reached total depth on March 16, 2026. Wireline logs indicate approximately 290 feet of net hydrocarbon pay. This well was drilled ahead of schedule, with all turnkey drilling costs covered by the operator, apart from certain ancillary drilling equipment costs. The second well, FR-1836, was spud on March 26, 2026, and is currently drilling. Upon reaching total depth on FR-1836, the drilling rig will demobilize, and completion and tie-in operations will proceed for both wells. The rig is then expected to move to the WD-4 block in the third quarter of 2026 to drill two additional wells.
Source: Touchstone Exploration
