Mr. Paul Baay reports

TOUCHSTONE EXPLORATION ANNOUNCES AN OPERATIONAL UPDATE

Touchstone Exploration Inc. has provided an operational update.

Highlights:

• The Cascadura natural gas facility expansion and construction of the flowline from the Cascadura C surface location to the facility are progressing as scheduled, and the company continues to target initial production from its Cascadura-2ST1 and Cascadura-3ST1 wells prior to the end of September, 2024;
• Achieved average net sales volumes of 5,432 barrels of oil equivalent per day in the second quarter of 2024;
• The company's current average net field estimated production is approximately 5,711 barrels of oil equivalent per day:
  • Following production optimization efforts at Cascadura, the Cascadura-1ST1 and Cascadura Deep-1 wells are currently producing at a combined net field estimated rate of approximately 4,082 barrels of oil equivalent per day;
  • The two CO-1 development wells drilled in 2024 commenced production on May 27, 2024, with current aggregate net field estimated production of approximately 212 barrels per day.

Cascadura

As part of its continuing production optimization efforts at Cascadura, Touchstone performed a recompletion on the Cascadura Deep-1 well by adding perforations above the previously completed pay intervals. The well was shut in on June 24, 2024, and resumed production on July 4, 2024. Prior to the recompletion, the Cascadura wells produced an aggregate net field estimated rate of 3,463 barrels of oil equivalent per day, and current combined net field estimated production is approximately 4,082 barrels of oil equivalent per day.

Touchstone continues to make steady progress on the project connecting the Cascadura C surface location to its Cascadura natural gas facility. Key milestones include the completion of road and right-of-way construction and the installation of watercourse culvert crossings. The bridge over the Poole River is approximately 50 per cent complete, with completion anticipated by the end of August. Additionally, the flowline construction is advancing on schedule, with approximately 62 per cent of the pipeline welded and 58 per cent trenched along the right-of-way.

Simultaneously, the Cascadura facility expansion is under way. An additional natural gas separator has arrived at the facility, and the wellhead tie-in piping and valves are being delivered to a third party for fabrication prior to installation.

We continue to target initial production from the Cascadura-2ST1 and Cascadura-3ST1 wells prior to the end of September, 2024.

CO-1 production

The two development wells on the company's CO-1 block commenced production on May 27, 2024. Since first production, the two wells have produced an aggregate net field estimated average of 167 barrels per day. In mid-July, 2024, the company performed optimization work on the wells, and they are currently producing at a combined net field estimated average rate of approximately 212 barrels per day.

Production volumes

In the second quarter of 2024, Touchstone attained average net sales volumes of 5,432 barrels of oil equivalent per day, comprising:

• Average natural gas net sales volumes of 25 million cubic feet per day (4,173 barrels of oil equivalent per day) at an average realized price of $2.48 per thousand cubic feet, with Cascadura Deep-1 shut in for seven days during the period;
• Average net daily crude oil and natural gas liquid sales volumes of 1,259 barrels per day, with an average realized price of $73.64 per barrel.

Touchstone's current average net field estimated production is approximately 5,711 barrels of oil equivalent per day, comprising:

• Average natural gas volumes of 26.6 million cubic feet per day (4,426 barrels of oil equivalent per day);
• Average crude oil and natural gas liquids volumes of 1,285 barrels per day.

About Touchstone Exploration Inc.

Touchstone Exploration is a company based in Calgary, Alta., that is engaged in the business of acquiring interests in petroleum and natural gas rights and the exploration, development, production and sale of petroleum and natural gas. Touchstone is currently active in onshore properties located in the Republic of Trinidad and Tobago. The company's common shares are traded on the Toronto Stock Exchange and the AIM (Alternative Investment Market) of the London Stock Exchange under the symbol TXP.

We seek Safe Harbor.