Touchstone Exploration Inc. (TSX, AIM: TXP), a Calgary-based oil and gas producer operating onshore in Trinidad and Tobago, reported a significant improvement in its third-quarter 2026 results on 13 November 2026, with petroleum and natural gas sales rising 30% year-on-year to $16.46 million. The company swung to a net income of $0.08 million from a net loss of $2.06 million in the same period of 2025. However, the announcement also disclosed a going concern material uncertainty note in its interim financial statements, flagging liquidity risks tied to commodity prices, work commitments, and VAT receivable recovery.

Key Points

  • Touchstone Exploration Inc. (TSX, AIM: TXP) — onshore Trinidad and Tobago oil and gas producer
  • Q3 2026 petroleum and natural gas sales rose 30% to $16.46 million; operating netback surged 82% to $22.58 per boe
  • Net debt reduced 17% quarter-on-quarter to $57.34 million; funds flow from operations increased to $5.37 million from $0.74 million
  • Investors should watch the going concern disclosure, VAT receivable recovery progress, and CR-3 Karamat well results

Q3 2026 Revenue and Operating Netback Driven by Higher Realised Commodity Prices Across All Products

Touchstone's 30% revenue increase to $16.46 million was driven predominantly by a 49% rise in its realised commodity price per barrel of oil equivalent, partially offset by a 13% decline in sales volumes. Natural gas remained the dominant revenue contributor at $8.94 million, produced at an average rate of 19.4 MMcf/d across the Ortoire and Central blocks. The operating netback reached $22.58 per boe, an 82% improvement from $12.38 per boe in Q3 2025, reflecting higher prices across crude oil, NGLs, and natural gas, though royalty expenses also increased by 47% per boe over the same period.

Net Debt Falls 17% After Debenture Repayment and Bank Debt Reduction on Trinidad Operations

Touchstone reduced its net debt by 17% from the prior quarter to $57.34 million at 30 September 2026. This reflected $3.55 million in bank debt principal repayments funded from operating cash flow, alongside repayment of the $8.4 million debenture issued in the June 2026 integrated financing, which was settled through the issuance of common shares. The company reported cash of $8.1 million at the period end. Scheduled bank debt principal repayments of approximately $12.7 million are due over the next 12 months, and the company is pursuing recovery of approximately $12.0 million in outstanding VAT receivables.

Going Concern Uncertainty Flagged Alongside Ortoire Work Commitment Deferral Sought

The interim financial statements include a material uncertainty note regarding Touchstone's ability to continue as a going concern. The announcement states that adverse commodity price movements, operational disruptions, or delays in VAT recovery could negatively affect the company's ability to meet its debt obligations and contractual commitments. Minimum contractual payments of approximately $13.1 million are estimated for the remainder of 2026, of which approximately $11.2 million relates to the Ortoire exploration commitment and the Balata East development well obligation — both of which the company is actively seeking to defer.

Post-Period CR-3 Karamat and PS-623 Well Results Provide Early Operational Momentum

Following the quarter end, Touchstone reported that the CR-3 Karamat well on the Ortoire block produced at an average gross natural gas rate of approximately 2.3 MMcf/d on a 90% open choke and is expected to be placed on permanent production shortly. Meanwhile, the PS-623 crude oil development well on the WD-4 block — in which Touchstone holds a 100% working interest — was placed onstream and produced at an average field-estimated rate of approximately 290 bbls/d over its first 16 days. October 2026 field-estimated production averaged 5,020 boe/d, an improvement on the Q3 2026 quarterly average of 4,485 boe/d.