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Gold/Mining/Energy : Canadian Oil & Gas Companies

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To: pstad60 who wrote (24791)	5/9/2025 3:35:28 PM
From: pstad60	Read Replies (1) of 24892

Touchstone Exploration : Malcy's Blog commentary 9 May 2025 \| Categories: Daily Blog malcysblog.com ".... Touchstone Exploration-Completing the jigsaw…So, the Central Block deal appears to be near to closing, should this happen imminently it is very good news for Touchstone for whom this transforms their business and should mean a resultant sizing up operationally and financially. This deal is being financed by a combination of debt and equity, the former via Republic Bank and a six year $30m non-revolving package. In the raise the company has raised some £15.375m at 20.5p in a significantly oversubscribed private placement that has brought in two new institutional shareholders as well as existing backers, at an 11.8% discount with buyers over. It’s an eminently sensible financing which makes the deal potentially accretive via the increase in netback revenue from the 2,000 b/d backed by the increase in the company’s portfolio of assets. Funds per share should also increase when we get updated guidance thus offsetting any dilution from the equity part of the financing. Operationally the benefits of the Central Block have already been made in previous blogs, but to recap, the acquisition of Shell’s production, c.94% natural gas and using the facility to sell as LNG with the pricing attractions that carriers is highly beneficial compared to existing contracts. TXP is already planning two Central Block wells this year. Elsewhere the portfolio will now set to drilling two wells at Cascadura and I understand that these four wells will be drilled back-to-back to ensure most efficient economics. It is the fact that these are all development wells that makes me comfortable about year-end production aimed at a respectable 8-9/- boe/d+, with 2P reserves of 5.6m boe. Touchstone is now fully funded with an added state of the art facility enabling significant premium pricing via the LNG sales, it will have a robust balance sheet and be a much stronger beast in this particular jungle. The last few months has seen a complete turnaround for Touchstone, it has got to grips with the original portfolio with added subsurface activity promising higher production and with margins that are now rising and metrics much better...." GLTA !

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