Highlights

  • Touchstone raised GBP 6.32 million (USD 8.44 million) through a private placement.
  • Retail offer planned to raise an additional GBP 0.68 million (USD 0.91 million).
  • Net proceeds will fund the 2025 capital program and satisfy loan obligations.

Touchstone Exploration Inc. (LSE:TXP) announced on 24 October 2025 that it has conditionally raised GBP 6.32 million (USD 8.44 million) via a private placement of 57,454,545 new common shares at 11 pence (C$0.206) per share. The placement included subscriptions from a new investor, Purebond Limited, and certain existing investors.

In addition, the company intends to raise up to GBP 0.68 million (USD 0.91 million) through a retail offer for existing shareholders via the Bookbuild Platform, allowing up to 6,181,818 new common shares. The placement and retail offer together form the "Offered Shares," although the retail offer is separate from the private placement.

Use of Proceeds

The net proceeds from the placement and retail offer are expected to fund Touchstone's revised 2025 capital program, which includes drilling a development well on the Central block and capital investments for the Cascadura natural gas facility compression project scheduled for completion in Q2 2026.

Investor Participation and Board Appointment

Purebond Limited, a UK-registered entity managed by the Kansagra family, participated in the placement and has secured the right to appoint one non-executive director to Touchstone’s Board while its stake remains above 15%. The company plans to announce the Board nominee in due course.

Management Commentary

Paul R. Baay, President and CEO, commented:
"This financing fully satisfies our outstanding obligations under our Loan Agreement, positioning us to advance our 2025 capital investment program focused on high-return projects, including drilling on the recently acquired Central block and the installation of the Cascadura compressor.

We are grateful for the continued support of our existing investors and are pleased to welcome Purebond as a significant new shareholder in Touchstone. This strategic investment strengthens our financial position and adds valuable expertise to our Board through the appointment of Mr. Kansagra, a UK-based director with extensive experience in the resource sector and capital markets."

Admission and Share Details

Application has been made for the Offered Shares to be admitted to trading on the TSX and AIM. The shares are expected to be issued and admitted at or before 8:00 a.m. London time on 30 October 2025. The common shares issued under the placement will represent approximately 18% of the total issued share capital on admission, before any retail offer shares are issued.

Updated Guidance

Touchstone updated its 2025 operational and financial guidance following the incorporation of the Central block and Cascadura development activities:

  • Average daily production is expected at 4,700–5,300 boe/d, down 11% from prior estimates.
  • Funds flow from operations is forecast at USD 6 million, reflecting a 45% decrease from prior guidance.
  • Capital expenditures are estimated at USD 26 million, a USD 2 million reduction from prior guidance.
  • Net debt is expected to reach approximately USD 65 million, up USD 1 million from previous guidance.