Touchstone Exploration reported that it completed the acquisition of Shell Trinidad Central Block Limited in the second quarter of 2025, adding “approximately 1,910 barrels of oil equivalent per day (boe/d) of liquids-rich natural gas production” and providing access to global LNG pricing.
In its announcement dated August 14, the company said average production for the quarter was 4,399 boe/d, with 69% natural gas, compared to 4,317 boe/d in the first quarter of 2025 and 5,432 boe/d in the second quarter of 2024. It noted that second-quarter volumes included roughly 1.5 months of output from the Central Block acquisition, which contributed about 1,910 boe/d over the post-acquisition period.
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Touchstone reported petroleum and natural gas sales of US$11.01 million, a 22% drop from US$14.1 million in the prior-year quarter. Crude oil sales were US$6.08 million from an average production of 1,142 barrels per day (bbls/d) at an average realized price of US$58.52 per barrel. NGL sales totaled $0.68 million from 210 bbls/d at $35.40 per barrel, while natural gas sales were US$4.25 million from 18.3 million cubic feet per day (MMcf/d) (3,047 boe/d) at $2.55 per thousand cubic feet (Mcf).
The company generated US$5.04 million in operating netback, down 38% year-over-year, which it attributed to “decreased petroleum and natural gas sales and related royalties and increased natural gas related operating expenses”.
Funds flow from operations fell to USS$1.43 million from US$3.97 million a year earlier, which Touchstone said was “largely driven by lower operating netbacks and increased cash finance expenses, partially offset by lower current income tax”.
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Touchstone posted a net loss of US$0.71 million, compared to net earnings of US$3.34 million in the second quarter of 2024. The company said the variance reflected “the decrease in year-over-year funds flow from operations and a US$1.54 million gain on asset disposition recorded in the prior year”.
Capital investment in the quarter totaled US$4.66 million, primarily directed toward drilling the Cascadura-5 development well. The company also raised US$5.22 million through a private placement of 24,636,585 common shares at 20.5 pence sterling (about C$0.38) per share.
Net debt rose to US$63.89 million as of June 30, 2025, which Touchstone said reflected the close of the Central Block acquisition, funded by an additional US$30 million term loan facility.
Following the quarter, the company closed a US$12.5 million private placement of convertible debentures and common share purchase warrants with a Canadian private investor. Touchstone said proceeds will “fund the remaining 2025 Cascadura development drilling program and reduce outstanding accounts payable”. It confirmed that the transaction satisfies an equity raise requirement under its Fourth Amended and Restated Loan Agreement.
Touchstone also reported that July 2025 field-estimated production averaged 5,281 boe/d, up 3.8 percent from June. Estimated volumes included 22.3 MMcf/d of net natural gas production (3,717 boe/d) and 1,564 bbls/d of net crude oil and liquids production.
