Mr. Paul Baay reports

TOUCHSTONE ANNOUNCES COMMENCEMENT OF CASCADURA PRODUCTION

Touchstone Exploration Inc.'s Cascadura natural gas and liquids facility has safely delivered first production. Touchstone has an 80-per-cent operating working interest in the Cascadura field, which is located on the Ortoire block onshore in the Republic of Trinidad and Tobago. Heritage Petroleum Company Ltd. holds the remaining 20-per-cent working interest.

Natural gas and associated liquids production commenced on Sept. 6, 2023, and the company intends to increase gross aggregate natural gas production from the Cascadura-1ST1 and Cascadura Deep-1 wells to 60 MMcf/d (million cubic feet per day) (10,000 boe/d (barrels of oil equivalent per day)), plus associated natural gas liquids, over the coming weeks.

Natural gas and associated liquids production from the company's Cascadura wells is separated at the Cascadura facility on the Cascadura A surface location. The facility operates as a self-contained system, capturing all natural gas from the separators and liquids storage tanks, and recycling it back into the system to increase sales volumes. Additionally, the facility sustains its own power requirements through on site solar systems and natural gas generators, and is entirely independent of the Trinidad power grid. The facility has a designed gross production capacity of 200 MMcf/d and 5,000 bbl/d (barrels per day) of associated liquids, with a current gross production capacity of 90 MMcf/d and 2,250 bbl/d of associated liquids (17,250 boe/d).

The facility was constructed over the past year, and represented approximately 110,000 work hours of local employment using Trinidadian contractors and fabrication facilities. Throughout construction and commissioning, the project recorded no lost time injuries.

Natural gas volumes are transported through a 20-inch pipeline constructed and operated by The National Gas Company of Trinidad and Tobago Ltd. (NGC), and sold to NGC pursuant to an Ortoire natural gas sales agreement executed in December, 2020. Condensate volumes will be transported via tanker trucks to the company's Barrackpore liquids sales facility and sold to Heritage, pursuant to a Cascadura field liquids sales agreement executed on Sept. 1, 2023.

Paul Baay, president and chief executive officer, commented:

"The commencement of production from Cascadura marks the most significant milestone to date in the Touchstone journey, transitioning us to a majority-natural-gas-weighted production company. Our fixed price natural gas agreement will deliver a significantly increased predictable cash flow stream to be reinvested in the future development of our extensive Trinidad asset base. Cascadura represents the second producing area on our Ortoire block, where we have multiple defined development prospects, alongside a significant pipeline of long-term exploration prospects.

"We would like to thank our partners and contractors for their support, and attention to safety during the facility construction and commissioning process. Our team will now focus on optimizing Cascadura production, and planning a future drilling program to fill our existing Coho and Cascadura facilities."

Touchstone Exploration Inc.

Touchstone Exploration is a Calgary, Alta.-based company 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.

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