Cavendish update25 Feb 2026 07:42
Summary from Cavendish:
Touchstone has released a YE25 reserves report …. Despite a decrease in forecast pricing, the report highlights an increase in post-tax value, with the PDP NPV10, increasing 34% to US$89m (20p/share), and the 2P NPV10 increasing to US$315m (72p/share).
— Report underscores opportunity: The GLJ reserves report estimates total gross PDP reserves of 9.9mmboe (2024: 6.8mmboe), 1P reserves of 27.6mmboe (2024: 29mmboe) and 2P reserves of 49.6mmboe (2024: 50.1mmboe) at YE25… The report also highlights the disconnect between Touchstone’s share price and the after tax NPV of its reserves, with GLJ assigning an after-tax NPV10 of US$89m, a 34% YoY increase. NPV10 for 1P and 2P reserves were US$183m and US$315m, respectively, a significant 59% and 173% premium to EV…
— Upcoming catalysts: In addition to the commencement of production from the CR-3 ridge well in March, a four well drilling campaign will begin on the Company’s WD-8 and WD-4 acreage in early March.
Following the sale of the non-core Fyzabad property, the Company is fully carried for the drilling of three of these wells. The Cascadura compressor is targeted for commissioning in 2Q26, which is expected to provide a stable production profile to enhance future forecasts and well-deliverability modelling.
— No changes to our valuation: We maintain our target price at 30.6p, a 258% premium to the current share price. We will release 2026E forecasts at the time of the 4Q25 results in March.