Touchstone release financial results for the three months ended March 31, 2026

14 May Touchstone release financial results for the three months ended March 31, 2026

Touchstone Exploration Inc. reports its operating and condensed financial results for the three months
ended March 31, 2026 and provides an operational update. Selected financial information is outlined below and should be read in conjunction with Touchstone’s March 31, 2026 unaudited interim condensed consolidated financial statements and related Management’s discussion and analysis. Unless otherwise stated, all financial amounts presented herein are in United States dollars, and all production volumes disclosed herein are sales volumes based on Company working interest before royalty burdens.

First Quarter 2026 Financial and Operating Highlights

• Production growth: Average daily production increased 8% year-over-year to 4,657 boe/d, as
  production from the Central field (2,131 boe/d) successfully mitigated natural declines in legacy
  assets. Relative to the preceding quarter, average quarterly production decreased from 4,877
  boe/d, primarily due to natural declines in mature crude oil and Ortoire natural gas volumes.
• Revenue and realized pricing: Petroleum and natural gas sales totaled $12.5 million, a 14%
  increase from the $11.0 million recorded in the previous quarter. This was driven by an 18%
  increase in realized natural gas prices and a 25% recovery in realized crude oil pricing, with March
  2026 crude oil volumes averaging $86.58 per barrel.
• Crude oil sales: $5.68 million from average production of 929 bbls/d at a realized price of
  $67.94 per barrel.
• NGL sales: $1.50 million from average production of 422 bbls/d at a realized price of $39.38
  per barrel.
• Natural gas sales: $5.36 million from average production of 19.84 MMcf/d (3,306 boe/d) at a
  realized price of $3.00 per Mcf.
• Operating netback: Realized an operating netback of $13.73 per boe, a 46% improvement over
  the $9.41 per boe recorded in the preceding quarter. This expansion reflected higher commodity
  pricing and stable royalty structures, which more than offset the increased operating cost base.
• Funds flow from operations: Increased to $1.85 million from $0.62 million in the previous quarter,
  primarily driven by a $1.54 million increase in operating netbacks.
• Net income: Recorded a net loss of $2.38 million ($0.01 per basic share), a normalization from
  $13.62 million in net income reported in the fourth quarter of 2025, which was skewed by $14.53
  million in one-time non-cash gains.
• Capital investments: Expenditures were focused on high-impact projects, including the FR-1835
  crude oil development well, tie-in of the CR-3 natural gas development well, and the Cascadura
  compression project, totalling $3.22 million for the quarter.
• Financial position: Ended the period with a net debt position of $76.07 million.
  Post Period-end Highlights
• Strategic infrastructure: Successfully delivered the Cascadura compressor to the facility in April,
  with commissioning expected in June 2026 to unlock further production capacity.
• WD-8 block drilling: Completed drilling the FR-1836 well ahead of schedule, with the well
  encountering an estimated 227 feet of net hydrocarbon pay.
• Production Update: In April 2026, the Company produced estimated average net production
  volumes of 4,677 boe/d, including average net natural gas sales volumes of 19.3 MMcf/d (3,221
  boe/d) and average net crude oil and natural gas liquid sales volumes of 1,456 bbls/d.

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