Touchstone Exploration
Cascadura compressor update.
Final testing of the compressor for the Cascadura natural gas processing plant is underway
in Houston. According to CEO Paul Baay, the compressor should be shipped to Trinidad
sometime in February.
The schedule is still on track to complete installation during Q2 with preliminary work already
underway at the Cascadura facility ... ie pouring of a larger cement pad to mount the compressor on.
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See pages 13 and 14 of the November corporate presentation.
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For further details of the compressor project, refer to the November video presentation at the 18:00
and 53:00 minute marks
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Net cost to TXP of the compressor project is approximately US$5.4 million, which includes the purchase price,
shipping, installation and commissioning costs, of which 30% (roughly US$1,620,000) had already been spent
as of the presentation date in mid-November.
As for the costs of the new CR3 well at Central Block, the company had initially estmated the gross costs of
US$5.5 million to drill, which went about 25% over budget, or roughly US$6,875,000 to drill. Another $1.1 million
was estimiated for the tir-in costs. Touchstone's partner Heritage Petroleum has a 35% working interest
in the Central Block, so net cost to Touchstone for the CR3 well should be about US$5,183,000.
As of the end of Q3, Touchstone had a cash balance of US$12,685,000 and subsequently completed
a financing in October for an additional US$9,330,000 to satisfy covenants of the Central Block
acquisition term loan.
Also, as of the end of Q3, Touchstone was owed almost US$8 million in VAT refunds from theTrinidad
and Tobago Gov't. CEO Paul Baay has been in Trinidad for the past week attending the annual
Trinidad and Tobago Energy Conference and has subsequently held meetings with the government
about the outstanding VAT refunds.
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As CEO Paul Baay mentioned, all their producing wells were cash flow positive as of the date of
the November presentation, so the company is still well funded to carry on with additional wells at
Central Block in 2026.
It should be about a month before completion of the tie-in and flow rate tests for the new CR3 well
at Central Block. Next well at Central Block will be spud after the CR3 tie-in and flow rate tests are completed.
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This was the stage of progress for the tie-in phase of the CR3 well as of January 14, 2026.
Pipe was to be laid on site starting January 15 and welding was to commence the following week.
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