Touchstone Exploration Announces 2025 Year-End Reserves

About this update from Touchstone Exploration Inc

CALGARY, AB / ACCESS Newswire / February 25, 2026 / Touchstone Exploration Inc. ("Touchstone", "we", "our" or the "Company") (TSX:TXP)(LSE:TXP) announces 2025 year-end reserves. Touchstone's independent reserves evaluation was prepared by GLJ Ltd. ("GLJ") with an effective date of December 31, 2025 (the "Reserves Report"). Highlights of our total proved developed producing ("PDP"), total proved ("1P"), and total proved plus probable ("2P") reserves from the Reserves Report are provided below. Unless otherwise stated, all financial amounts referenced herein are stated in United States dollars. Readers are further cautioned to read the applicable advisories contained herein. Paul Baay, President and Chief Executive Officer, commented: "Our year-end reserves report highlights the strategic integration of the Central block into our producing reserve base, establishing a new pillar for LNG-linked growth alongside our stable oil production and Ortoire natural gas assets. This year's report also reflects the expansion of our gas marketing portfolio, underpinned by fixed-price sales at Ortoire and high-value LNG contracts tied to Central block production. While data from the Cascadura-5 well necessitated a downward revision to our Block B reserves, Block A remains on forecast and continues to represent a significant opportunity for production growth, particularly as natural gas pricing is subject to redetermined in October 2027. This independent evaluation underscores the substantial value of our Trinidadian portfolio. The NPV10 of future net revenues for our 2P reserves was estimated at approximately $653 million before tax and approximately $315 million after tax, which represented a 2 percent increase over 2024 despite our 2025 production. Furthermore, the addition of medium-gravity oil reserves from Cascadura-5 reinforces the potential of our emerging Herrera play. Through low-cost recompletion opportunities, we are well-positioned to efficiently enhance our production base by tapping lower-zone oil within our Block B assets. Looking ahead, we remain focused on execution. We look forward to tying in Carapal Ridge-3 for production in late March 2026, commencing our legacy oil block drilling program in March, and commissioning the Cascadura compressor in the second quarter of 2026. " 2025 Operational Highlights Year-end 2025 Reserves Overview Touchstone's year-end reserves reflect the strategic addition of natural gas and NGL reserves from the Central block acquisition, alongside a technical revision to Block B at Cascadura. The Cascadura subsurface model has evolved with each development well, providing a foundation for full-field development. The Cascadura compressor is targeted for commissioning in the second quarter of 2026, which is expected to provide a stable production profile to enhance future forecasting and well-deliverability modeling. With an established pipeline network and infrastructure in place, the Company is positioned for efficient and cost-effective future development. 2025 Year-end Reserves Report Summary Touchstone's year-end light and medium crude oil, conventional natural gas and NGL reserves in Trinidad were evaluated by independent reserves evaluator, GLJ, in accordance with definitions, standards, and procedures contained in the Canadian Oil and Gas Evaluation Handbook ("COGE Handbook") and National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). The reserve estimates set forth below are based upon GLJ's Reserves Report dated February 24, 2026, with an effective date of December 31, 2025. The Reserves Report uses the average price and inflation forecasts of three independent evaluation consultants (GLJ, McDaniel & Associates Consultants Ltd., and Sproule Associates Ltd. (collectively, the "Consultants")). All values in this news release are based on the three Consultants' average forecast pricing and GLJ's estimates of future operating and capital costs as of December 31, 2025. Additional reserves information as required under NI 51-101 will be included in the Company's Annual Information Form, which will be filed on SEDAR+ ( www.sedarplus.ca ) on or before March 31, 2026. Please refer to " Advisories: Reserves Disclosure " for further information. In certain tables set forth below, the columns may not add due to rounding. 2025 Reserves Summary by Category Notes: Summary of Crude Oil and Natural Gas Reserves by Product Type Notes: Summary of Net Present Values of Future Net Revenues Notes: Reconciliation of Gross Reserves by Product Type The following table sets forth a reconciliation of the Company's total gross proved, probable, and proved plus probable reserves by product type as of December 31, 2025, against such reserves as at December 31, 2024. The reconciliation is based on forecast price and cost assumptions. Notes: As of December 31, 2025, gross proved plus probable reserves were 49,558 Mboe, representing a slight decrease of 505 Mboe or 1 percent from the prior year. Future Development Costs The following table provides information regarding the future development costs ("FDC") deducted in the estimation of the Company's future net revenue using forecast prices and costs as included in the Reserves Report. The following table sets forth the changes in undiscounted FDC included in the Reserves Report against such costs in the December 31, 2024, reserves report prepared by GLJ dated March 5, 2025. Forecast Pricing and Costs Forecast pricing and costs are prices and costs that are generally acceptable, in the opinion of GLJ, as being a reasonable outlook of the future as of the evaluation effective date. The forecast cost assumptions consider inflation with respect to future operating and capital costs. The following table sets forth the benchmark reference commodity prices and inflation rates reflected in the Reserves Data as of December 31, 2025. These price assumptions were provided to the Company by GLJ and represented the average price forecast of the Consultants as of the date of the Reserves Report. Note: Touchstone Exploration Inc. Touchstone Exploration Inc. is a Calgary, Alberta based company engaged in the business of acquiring interests in petroleum and natural gas rights and the exploration, development, production and sale of petroleum and natural gas. Touchstone is currently active in onshore properties located in the Republic of Trinidad and Tobago. The Company's common shares are traded on the Toronto Stock Exchange and the AIM market of the London Stock Exchange under the symbol "TXP". For further information about Touchstone, please visit our website at www.touchstoneexploration.com or contact: Paul Baay, President and Chief Executive Officer Tel: +1 (403) 750-4487 Brian Hollingshead, EVP Engineering and Business Development Advisories Forward-Looking Statements The information provided in this news release contains certain forward-looking statements and information (collectively, "forward-looking statements") within the meaning of applicable securities laws. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to assumptions, risks and uncertainties, many of which are beyond the control of the Company. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expect", "believe", "estimate", "potential", "anticipate", "forecast", "pursue", "aim", "intends", and similar expressions, or are events or conditions that "will", "would", "may", "could" or "should" occur or be achieved. The forward-looking statements contained in this news release speak only as of the date hereof and are expressly qualified by this cautionary statement. Specifically, this news release, but is not limited to, forward-looking statements relating to: the Company's business plans, strategies, priorities and development plans; the quality and quantity of prospective hydrocarbon accumulations based on wireline logs; field estimated production; the Company's expectations regarding timing and results of future drilling, completion, and tie-in operations at including anticipated production rates and commercial outcomes therefrom; estimated crude oil, NGL and natural gas reserves and the net present values of future net revenue therefrom; the forecasted future production, commodity prices, inflation rates and all future costs used by GLJ in their evaluation; and Touchstone's current and future financial position, including the Company's liquidity and the sufficiency of resources to fund future capital expenditures. The Company's actual decisions, activities, results, performance, or achievement could differ materially from those expressed in, or implied by, such forward-looking statements and accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do, what benefits that Touchstone will derive from them. Information and statements relating to reserves are by their nature forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated, and can be profitably produced in the future. The recovery and reserve estimates of Touchstone's reserves provided herein are estimates only, and there is no guarantee that the estimated reserves will be recovered. Consequently, actual results may differ materially from those anticipated in the forward-looking statements (see " Advisories: Reserves Disclosure "). Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. Certain of these risks are set out in more detail in the Company's 2024 Annual Information Form dated March 19, 2025 which is available under the Company's profile on SEDAR+ ( www.sedarplus.ca ) and on the Company's website ( www.touchstoneexploration.com ). The forward-looking statements contained in this news release are made as of the date hereof, and except as may be required by applicable securities laws, the Company assumes no obligation or intent to update publicly or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise. Reserves Disclosure The disclosure in this news release summarizes certain information contained in the Reserves Report but represents only a portion of the disclosure required under NI 51-101. Full disclosure with respect to the Company's reserves as at December 31, 2025 will be contained in the Company's Annual Information Form for the year ended December 31, 2025 which will be filed on SEDAR+ ( www.sedarplus.ca ) on or before March 31, 2026. All reserves values, future net revenue and ancillary information contained in this news release are derived from the Reserves Report unless otherwise noted. Unless otherwise noted, reserve references in this news release are Company "gross reserves". Company gross reserves are the Company's total working interest reserves before the deduction of any royalties payable by the Company. Estimates of reserves and future net revenue for individual properties may not reflect the same level of confidence as estimates of reserves and future net revenue for all properties, due to the effect of aggregation. All reserves assigned in the Reserves Report are located onshore in the Republic of Trinidad and Tobago and presented on a consolidated basis. The recovery and reserve estimates of Touchstone's crude oil, NGL and natural gas reserves provided herein are estimates only, and there is no guarantee that the estimated reserves will be recovered. Actual reserves may eventually prove to be greater than or less than the estimates provided herein. There are numerous uncertainties inherent in estimating quantities of petroleum and natural gas reserves and the future cash flows attributed to such reserves. The reserve and associated cash flow information set forth herein are estimates only. This news release summarizes the crude oil, NGL and natural gas reserves of the Company and the net present values of future net revenue for such reserves using forecast prices and costs as at December 31, 2025, prior to provision for interest and finance costs, general and administration expenses, and the impact of any financial derivatives. It should not be assumed that the estimates of future net revenues presented herein represent the fair market value of the reserves. There is no assurance that the forecast prices and costs assumptions will be attained, and variances could be material. In the Reserves Report, GLJ estimated reserve volumes and future net revenues based on historical well performance, production forecasts and economic limits for individual wells. In certain cases, the forecast economic life of wells extends beyond the current terms of applicable licences or marketing agreements. While there is precedent for renewals and extensions, there is no assurance that such agreements will be renewed or extended on terms consistent with current assumptions. Any failure to extend these agreements would reduce the economic life of the associated reserves. Estimates of reserves and future net revenue therefrom in the Reserves Report have been made assuming the development of each property, in respect of which the estimate is made, will occur, and without the regard to the likely availability of funding required for the development. There can be no guarantee that funds will be available or that the Company's Board will allocate funding to develop all of the reserves attributable in the Reserves Report. Failure to develop those reserves could have a negative impact on our future cash from operating activities and financial position. Further, Touchstone may choose to delay development depending upon a number of circumstances including the existence of higher priority expenditures, available cash on hand, and borrowing capacity. "Proved Developed Producing" reserves are those reserves that are expected to be recovered from completion intervals open at the time of the estimate. These reserves may be currently producing, or if shut-in, they must have previously been on production, and the date of resumption of production must be known with reasonable certainty. "Proved" reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves. "Probable" reserves are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves. Certain terms used in this news release but not defined are defined in NI 51-101, CSA Staff Notice 51-324 - Revised Glossary to NI 51-101Standards of Disclosure for Oil and Gas Activities ("CSA 51-324") and/or the COGE Handbook and, unless the context otherwise requires, shall have the same meanings herein as in NI 51-101, CSA 51-324 and the COGE Handbook, as the case may be. Oil and Gas Measures To provide a single unit of production for analytical purposes, natural gas production has been converted mathematically to barrels of oil equivalent. The Company uses the industry-accepted standard conversion of six thousand cubic feet of natural gas to one barrel of oil (6 Mcf = 1 bbl). The 6:1 boe ratio is based on an energy equivalent conversion method primarily applicable at the burner tip. It does not represent a value equivalency at the wellhead and is not based on either energy content or current prices. While the boe ratio is useful for comparative measures and observing trends, it does not accurately reflect individual product values and might be misleading, particularly if used in isolation. As well, given that the value ratio, based on the current price of crude oil to natural gas, is significantly different from the 6:1 energy equivalency ratio, using a 6:1 conversion ratio may be misleading as an indication of value. Oil and Gas Metrics This news release contains oil and gas metrics that are commonly used in the oil and gas industry including reserves additions and reserve life index ("RLI"). These metrics have been prepared by Management and do not have standardized meanings or standardized methods of calculation, and therefore such measures may not be comparable to similar measures presented by other companies and should not be used to make comparisons. Such metrics have been included herein to provide readers with additional measures to evaluate the Company's performance; however, such measures are not reliable indicators of the future performance of the Company, and future performance may not compare to the performance in prior periods, and therefore such metrics should not be unduly relied upon. The Company uses these oil and gas metrics for its own performance measurements and to provide shareholders with measures to compare the Company's operations over time. Readers are cautioned that the information provided by these metrics, or that can be derived from the metrics presented in this news release, should not be relied upon for investment purposes. Reserve additions are calculated as the change in reserves from the beginning to the end of the applicable period excluding period production. Management uses this measure to determine the relative change of its reserves base over a period of time. RLI is calculated by dividing the applicable reserves by forecasted January 2026 annualized production volumes derived from the Reserve Report. Unaudited Financial Information The Company's estimated income tax pools and non-capital losses as at December 31, 2025 were incorporated into the after-tax net present values prepared by GLJ in the Reserves Report. These figures are based on unaudited estimated results and are subject to the same limitations as discussed in the forward-looking statements advisory disclosed herein. These estimated results are subject to change upon completion of the Company's audited financial statements for the year ended December 31, 2025, and changes could be material. Touchstone anticipates filing its audited consolidated financial statements and related management's discussion and analysis for the year ended December 31, 2025 on SEDAR+ ( www.sedarplus.ca ) on March 19, 2026. Product Type Disclosures This news release includes references to fourth quarter 2025 and annual 2025 average daily production. The following table provides production by product type composition as defined by NI 51-101. In this news release, references to "crude oil" include the combined product types light crude oil and medium crude oil and heavy crude oil; references to "NGLs" refer to condensate and propane; and references to "natural gas" refer to conventional natural gas, all as defined in NI 51-101 instrument. Abbreviations The following abbreviations referenced in this news release have the meanings set forth below: SOURCE: Touchstone Exploration, Inc. View the original press release on ACCESS Newswire

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