Touchstone Exploration Announces Third Quarter 2026 Results

CALGARY, AB / ACCESS Newswire / November 13, 2026 / Touchstone Exploration Inc. ("Touchstone", "we", "our" or the "Company") (TSX:TXP)(AIM:TXP) reports its financial and operating results for the three and nine months ended September 30, 2026. Selected financial information is outlined below and should be read in conjunction with Touchstone's September 30, 2026 unaudited interim condensed consolidated financial statements and related Management's discussion and analysis, both of which are available on the Company's profile on SEDAR+ (www.sedarplus.ca) and website (www.touchstoneexploration.com). 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. Field-estimated volumes are based on field measurements and may differ from final sales volumes.

Third Quarter 2026 Financial and Operating Highlights

• Production: Averaged 4,485 boe/d in the third quarter of 2026, a 1% increase from 4,433 boe/d in the second quarter of 2026, primarily due to the completion of the Cascadura facility compression project. Third-quarter production decreased 13% from 5,142 boe/d in the third quarter of 2025, primarily reflecting planned compressor maintenance and a well shut-in on the Central block, as well as lower crude oil volumes. Reported sales volumes were reduced by a 9,465-barrel (approximately 103 bbls/d) increase in crude oil inventory during the quarter, the majority of which was sold in October 2026.
• Revenue and realized commodity pricing: Petroleum and natural gas sales totalled $16.46 million, a 30% increase from the $12.70 million recorded in the third quarter of 2025. The increase reflected a 49% increase in realized commodity price per boe, partially offset by a 13% decrease in sales volumes.
• Crude oil sales: $5.73 million from average production of 837 bbls/d at an average realized price of $74.33 per barrel.
• NGL sales: $1.80 million from average production of 422 bbls/d at an average realized price of $46.35 per barrel.
• Natural gas sales: $8.94 million from average production of 19.4 MMcf/d (3,226 boe/d) at an average realized price of $5.02 per Mcf. Central block natural gas realized an estimated average price of $7.81 per Mcf, compared to $2.58 per Mcf for Ortoire block natural gas sold under the Company's fixed-price contract. Central block volumes were sold under the Atlantic LNG Train 2/3 gas supply contract in July 2026 during Train 4 downtime.
• Operating netback: Generated $22.58 per boe, an 82% increase from $12.38 per boe in the third quarter of 2025, primarily driven by higher realized prices across all products, partially offset by higher royalty expenses.
• Funds flow from operations: Increased to $5.37 million from $0.74 million in the third quarter of 2025, primarily driven by a $3.46 million increase in operating netback and lower general and administrative and current income tax expenses.
• Net income: Recorded net income of $0.08 million ($0.00 per basic and diluted share), compared to a net loss of $2.06 million ($0.01 per basic and diluted share) in the third quarter of 2025. The $2.14 million improvement primarily reflected a $4.64 million increase in funds flow from operations, partially offset by $2.50 million in non-cash items, primarily deferred income tax expense and the convertible debenture revaluation loss.
• Capital expenditures: Invested $1.76 million in the third quarter of 2026, primarily directed toward drilling the PS-623 crude oil development well, which was completed and brought on production in October 2026.
• Net debt and deleveraging: Reduced net debt by 17% from the prior quarter to $57.34 million at September 30, 2026. This reflected $3.55 million in bank debt principal repayments funded from operating cash flow and the repayment of the $8.4 million debenture issued in the June 2026 integrated financing, with the proceeds resubscribed for common shares, which eliminated the debenture obligation.

Post Period-end Highlights

• CR-3 Karamat completion: Following isochronal well testing operations, downhole pressure gauges were installed for a pressure buildup test and additional flow test. After a five-day pressure buildup test, wellhead pressures built to approximately 1,600 psi and were still building. The well was then opened for an additional well test at different choke settings. Over the previous two-day period, the well was producing at an average gross natural gas rate of approximately 2.3 MMcf/d on a 90 percent open choke with a wellhead flowing pressure of 300 psi. CR-3 will undergo another brief pressure buildup test and will then be placed on permanent production to the facility. Downhole pressure recorders are expected to be retrieved at the end of November for future evaluation and analysis.
• WD-4 drilling: The first well in the Company's two-well WD-4 block development drilling campaign, PS-623, which was spud in the third quarter, reached total depth on October 4, 2026. The well has been completed and placed onstream at an average field-estimated production rate of approximately 290 bbls/d of crude oil over its first 16 days of production. The second well was spud on October 29, 2026.
• Production Update: Field-estimated production for October 2026 averaged 5,020 boe/d, comprised of 20.3 MMcf/d of net natural gas production (3,377 boe/d) and 1,643 bbls/d of net crude oil and liquids production.

Third Quarter 2026 Financial and Operational Results Overview

Notes:

1. Refer to "Advisories - Product Type Disclosures".
2. In the table above and elsewhere in this news release, references to "boe" mean barrels of oil equivalent that are calculated using the energy equivalent conversion method. Refer to "Advisories - Oil and Natural Gas Measures".
3. Specified or supplementary financial measure. Refer to "Advisories - Non-GAAP and Other Financial Measures".