Centra block15 Jul 2025 07:13
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Why Central Block’s 22 MMcf/d Threshold Matters
A lot of investors have asked why Touchstone’s Central Block is such a big deal—and why everyone keeps talking about getting production over 22 MMcf/d.
Here’s the simple version:
Current Production:
Central Block is flowing ~17.9 MMcf/d. That’s already a steady revenue stream priced off a blend of LNG-linked benchmarks:
• Europe’s TTF
• Asia’s Japan/Korea Marker
• Brent crude
After deductions, this has recently been translating to around $10.48 per mcf plant gate, which is much higher than Cascadura’s fixed contract gas price.
The 22 MMcf/d Threshold
This is the critical part. Management has stated that any volume above 22 MMcf/d qualifies for higher pricing terms, linked directly to LNG exports.
While they haven’t publicly disclosed the exact formula or uplift, the implication is clear:
More production doesn’t just mean more gas - it means higher margins per mcf on the incremental volume.
The Plan:
Touchstone has already completed surveys for two new development wells that could add another ~20 MMcf/d gross. That would take total field output close to 38 MMcf/d - well above the threshold.
Why It Matters:
Crossing that level could:
Substantially boost cash flow
Fund more drilling without constant dilution
Transform the balance sheet over the next 12–18 months
It’s been a long road with plenty of setbacks, but if the rigs get moving and this is the catalyst that could finally turn all the effort into sustained returns.
Here’s hoping they can deliver.
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