Touchstone Exploration Inc. has announced its preliminary 2025 capital budget and financial guidance, focused on expanding production and optimizing its Cascadura assets.
“We aim to fully leverage the extensive infrastructure and flowline installations completed in 2024 to unlock the field’s potential,” Paul Baay, President and Chief Executive Officer, stated. “Our preliminary 2025 capital budget focuses on executing our ‘drill-to-fill’ strategy, which involves drilling four gross Cascadura development wells to increase production and optimize asset performance.”
Touchstone averages 5,211 boe/d production in third quarter | OilNOW
Touchstone said it intends to fund this program through operating cash flows and a near-term US$10 million increase in its debt facilities. Baay added, “With prudent financial management, we expect to exit 2025 with a net debt level consistent with that of 2024, demonstrating our commitment to maintaining financial stability.”
Touchstone’s US$23 million capital budget includes US$20 million directed toward the Cascadura field and US$3 million allocated to exploration license payments and well optimization operations. The company plans to drill four gross (3.2 net) Cascadura development wells, with two from Pad B in Q1 2025 and two from Pad C in Q3 2025.
Touchstone boosting production with Cascadura wells | OilNOW
The company projects generating US$22 million in funds flow from operations in 2025.
Touchstone emphasized that the 2025 budget and guidance depend on the successful debt facility expansion and could be subject to change. The drilling of Cascadura-4 was deferred from December 2024 to Q1 2025 to align with the updated schedule.
