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Touchstone’s share price performance in 2024 and 2025 was dismal, but there are reasons to be optimistic in 2026 (the share price is already up 63% this year, with much of the increase occurring before the war with Iran).

Central Block, I suspect, will be key to a successful are there have already been positive developments, as JBLondon has reminded everyone on Discord this evening: “When Touchstone acquired Central Block, production averaged around 17 mmcf/d. Through optimisation that's already been lifted to roughly 21mmcf/d.” I’m hopeful there’s still a lot more to come, but it’s a pretty good start and something that demonstrates that Touchstone isn’t doomed to fail, as some here try to insist, in everything it does.

On January 14th 2026, Paul Baay, via Discord, answered 25 questions put to him by shareholders. Following January 5th 2026 RNS that “CR-3 also established a second, uphole, gas-charged play in the Karamat formation, which is being evaluated as a stand-alone prospect for potential drilling”, some of those questions concerned Karamat. Here they are, with Paul’s answers.

Q12: Has gas at Karamat changed the Central Block plan?

PB: Additive, but because it hasn’t been produced before it could be a higher priority.

Q13: Is a dedicated Karamat well being planned?

PB: Yes - planned and approved. Just waiting on capital allocation.

Q25: What were the key learnings from CR-3?

PB: Karamat was the wild card on the last well, so we will design future wells to get it behind casing before entering the Herrera.

It shouldn’t be long before we hear more. The Central Block is due to be shut down between March 11th and 15th so as to tie in CR-3, then testing begins followed by results and hopefully an announcement on the next stage of CB drilling.

More international investment, this time from China, is going into Trinidad: https://guardian.co.tt/business/tt-awards-two-offshore-blocks-to-chinese-state-company-6.2.2531632.001835bac9

The energy sector had been in decline, but is picking up as illustrated by the fact, as recorded in the article, that, “According to figures provided during the briefing, energy revenues rose from approximately $7.8 billion in 2024 to $8.2 billion in 2025” and did so despite lower prices.

Touchstone Exploration (Trinidad) Ltd acquired the Central Block asset from Shell Trinidad Central Block Ltd in May 2025. In November 2025, the Carapal Ridge-3 well (also referred to as CR-3) was spud, and was the first well to be drilled in Central Block in seventeen (17) years. The well was drilled to 8200ft, encountering significant Herrera sandstone reservoirs that are gas charged. The Herrera sandstones will be produced from the CR-3 well into the adjacent Central Block Gas Facility.

It was noted from the drill that the CR-3 well would have also encountered thick gas-charged Karamat sands, an interval not previously produced from in the Central Block pool. As such, Touchstone would like to drill two wells (CR-4 and possibly CR-5) to produce from this new gas charged reservoir. This would allow for further gas volumes to be produced into the Central Block Gas Facility, and by extension further gas volumes to boost Trinidad's gas production levels.

This request would not result in any increased environmental impact and risk, due to the following:

• The CR-3 site is a complete and finished surface location. By drilling CR-4 and CR-5 on this site, there would be less environmental disturbance since there is no additional surface/location work required. Additionally, accommodating these drills from the CR-3 site would significantly reduce the environmental impact, as it would no longer require the development of separate stand-alone well-sites and roads, and pipeline right of ways for tiebacks.

• By drilling these two wells from the CR-3 surface location, there will be no modifications required to the site to accommodate additional drill cuttings pits as drill pits are already available. Additional infrastructure requirements (pipelines, roads, etc.) would not be required to be constructed should the wells be successful, as these are already established.

• The Star Valley 205 Rig is currently on site at the CR-3 wellsite. The intention would be to utilize this same rig to commence the drill of CR-4 in late February 2026 (once all requisite approvals are received), following the pipeline tie in of CR-3. This would also result in a reduction of vehicular emissions, transportation requirements, and lower movement through the local communities.

With the intention to drilf these two wells, Touchstone also extends its commitment to continue its consistent engagement with the community, as was custom for the entire process for the CR-3 well. Our community liaison officer for this area, Akinola Straker, continues to liaise with all community members, and our management team also notifies and meets with the MP office for the Moruga/Tableland area to keep them updated on all proceedings.

Touchstone extends its thanks for the opportunity to submit this request, which should result in the least possible impact on the environment. Should you have any queries or require additional information, please feel free to contact any member of the HS

According to my Apple calculator, 23.5 Canadian cents equates to 12.91p, not 17p.

The Canadian price is often higher than the UK price, but perhaps not that much higher. Presumably, the Canadian price will either fall when the market opens there or the the UK price rise so as to close the gap,

Now 37%.

Almost 30% now.

…https://www.marketwatch.com/investing/stock/txp?countrycode=ca

From https://x.com/emauthority/status/2029345496322490553?ct=rw-null

The Environmental Management Authority (EMA) has granted a Certificate of Environmental Clearance (CEC) No. CEC7201/2026 to Primera Oil and Gas Limited (Primera), a subsidiary of Touchstone Exploration (Trinidad) Limited, for the drilling and production of natural gas and condensate at the existing Carapal Ridge-3 well site within the Central Block, Moruga.

This approval follows the successful performance of the Carapal-3 well and enables the development of two wells designed to increase national gas output from a newly identified gas-charged reservoir. The project will utilise an already developed surface well location, significantly reducing potential environmental risks, minimising additional land disturbance, and optimising existing infrastructure.

Early engagement between Primera and the EMA facilitated the submission of the CEC application and approval granted well within the statutory timeline. This reflects the EMA’s continued commitment to timely, transparent, and accountable decision-making.

The issuance of CEC7201/2026 marks the eighth major CEC granted under the new Board of Directors for priority projects within Trinidad and Tobago. Of these, seven approvals have been within the oil and gas sector, with one supporting tourism development, demonstrating a balanced regulatory approach across key economic sectors.

This underscores the Authority’s evolving regulatory framework, one that integrates efficiency, scientific rigour, and environmental stewardship. By ensuring that nationally significant projects are processed expeditiously without compromising environmental oversight, the EMA continues to support responsible investment, job creation, and long-term national resilience.

“By processing priority projects efficiently, without ever compromising environmental integrity, the EMA is actively enabling responsible investment, strengthening job creation and advancing long-term national resilience. Effective regulation is not a barrier to growth; it is the foundation of sustainable development.” — Doolar Ramlal, Chairman, EMA.

The EMA remains committed to upholding its mandate under the Environmental Management Act Chap. 35:05 to manage the nation’s environment while facilitating sustainable development that benefits present and future generations.

Https://trinidadexpress.com/business/local/central-block-boosts-touchstone-s-lng-growth-outlook/article_3a667299-2d2f-4e48-8b15-a46c1c616dfc.html

Interesting comment about Casc 5: “Baay said the addition of medium-gravity oil reserves from Cascadura-5 also points to further potential within the emerging Herrera play. The company said low-cost recompletion opportunities could allow it to tap deeper oil zones in Block B, adding incremental output without significant new drilling.”

If anyone seriously thinks the market has already priced in the previously indicated initial flow rate of 10 million thingthys per day they need to go an investment refresher course.

It doesn’t seem very likely, but if CR3 fails to produce anything or enough to have made drilling it worthwhile, there will likely be some more share price pain.

2P reserves with a net present value of $315 million after tax provides a lot of protection against short-term drilling disappointments.

That said, CR3 looks pretty encouraging and there’s not long left to find out what it produces.

Furthermore, there’s a detailed calculation on Discord that works the revenue boost of higher gas prices during the Atlantic shut down at about $3 million, which if roughly correct will go a long way to funding an additional well on Central Block.

Touchstone appear on Malcy’s 2026 bucket list, with a price target of 30p and this bit of commentary:

“For what it’s worth I think that this is a list of excellent companies offering significant opportunities. It was initially designed to provide a list of high quality, well managed companies that had good portfolios of assets and the ability to finance them.

“There are always some left field choices, sometimes when shares are at a discount to underlying value, such as Union Jack, Touchstone…” See https://www.malcysblog.com/2026/02/the-2026-bucket-list-afentra-arrow-borders-southern-corcel-dec-eco-atlantic-genel-jadestone-kistos-pharos-petrotal-reabold-seascape-serica-sintana-touchstone-union-jack-zephyr/

I hope to see 30p quite soon, but whether we do or not likely depends upon CR3 success, further near-term drilling on Central Block and a production increase from the compressor. Today’s news of higher gas prices for 40 to 50 days helps too.

Interesting comments on Discord earlier about the re-routing of the CR1 well feed (confirmed by Paul Baay) as part of the CR3 tie in, which will go where CR1 currently is. The thinking is that it should make tie ins for additional wells faster and that it’s an indication that higher pressures/more condensate are expected from CR3.

From https://www.malcysblog.com/2026/02/oil-price-petrotal-touchstone-star-and-finally/

With regard to reserves, relative to year-end 2024 and after accounting for 2025 production, gross PDP reserves increased by 45 percent to 9,933 Mboe. Gross 1P reserves declined by 5 percent to 27,559 Mboe, and gross 2P reserves decreased by 1 percent to 49,558 Mboe, an impressive number under the circumstances.

The change is reflected by the acquisition of the Central block which in addition to adding to reserves gives Touchstone access to the high-value LNG contracts, significantly enhancing pricing and ‘expands the gas marketing portfolio’ underpinned as it is by fixed-price sales at Ortoire.

There has been a downward revision of the Block B reserves as a result of the data from the Cascadura-5 well but over at Block A forecasts are unchanged and it ‘continues to represent a significant opportunity for production growth, particularly as natural gas pricing is subject to redetermined in October 2027’.

All in all this evaluation is a healthy one for Touchstone, providing, as it does, an ‘underscoring of the substantial value of our Trinidadian portfolio’ and the NPV10 of future net revenues for the 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.

As I said the reserves number looks very respectable despite the Cas-5 downgrade and the production last year and the hit by lower commodity prices. Such resilience in the overall number, only slightly down, gives me confidence in the value of the reserve base which significantly exceeds the market cap. It is time for Touchstone to narrow the gap and the shares to consolidate at a much higher level.

If rossannan didn’t post his nonsense 20 per times, visitors to this website (including rossannan himself) would be able to more easily see recent posts by others, such as mine from February 2nd and 3rd. Since he persists with his nonsense that the compressor is some sort of gimmick, here they are again:

Cascadura production has been disappointing, but here’s the new $6.7 million compressor that will hopefully significantly increase production: https://www.instagram.com/p/DUJSuXeAYHT/

According to the November 2025 presentation (page 14 of https://www.touchstoneexploration.com/content/uploads/2025/12/Corporate-Presentation-Nov-2025.pdf), the compressor should pay for itself in under 2 years.

However, as indicated by this recent question to and answer from Paul Baay (see Discord), we’ll have to wait to find out what the full effect is:

Q3: What uplift should we expect once compression is live?

PB: Initial uplift should be about 5–6 mmcf/d, but really don’t know until we get it running. The wells have never seen 300 PSI.

For a reminded about why there’s a need for a compressor, see the August 2026 presentation - https://youtube.com/watch?v=HNNcGlKK1BY - at 23:13, 29:16 and 37:48.

Note that Central Block, which has the same formation as Cascudura, has a compressor. Touchstone had hoped they could do without one for the first couple of years at Cascudura, but the declines persuaded them otherwise. The compressor will provide pressure stability that will both boost production and stability. As Paul acknowledged recently, the full effect won’t be known until it’s switched on, but it’s unlikely to be a $6.7 million gimmick.

There's a short video of the new compressor being tested on Instagram at https://www.instagram.com/p/DU56BReFLX8/?img_index=1

🚀Booster Compression Project🚀

Our Cascadura A compressor has been successfully run test in Houston, Texas. Meanwhile, preparations are in place on site for compressor installation with the cement pour now completed at Cascadura✅

The unit will now be partially disassembled and shipped to Trinidad for installation.

The compressor will support all the wells flowing through the Cascadura natural gas facility. You can see our progress below👀

https://www.linkedin.com/posts/cascadura-oilandgas-shipping-ugcPost-7429920764977418241-SjJv?utm_source=share&utm_medium=member_android&rcm=ACoAADFSecoBE2nsaBORLQDLVidhWnu2IMKBB0I

There’s no point asking Johnoxx and it doesn’t matter what he thinks.

Based upon the latest update from Paul Baay via Discord is sounds as though we should receive some stabilised production figures for CR3 in a couple of weeks or so. Those figures will do the talking.

They’re missing Rossannan’s insight on the JSE and PTAL boards; the companies he invested in before their share prices collapsed. People who live in glass houses shouldn’t throw stones.