Touchstone Exploration Announces Second Quarter 2026 Results and Operational Update

CALGARY, AB / ACCESS Newswire / August 14, 2026 / Touchstone Exploration Inc. ("Touchstone", "we", "our" or the "Company") (TSX:TXP)(AIM:TXP) reports its financial and operating results for the three and six months ended June 30, 2026 and provides an operational update. Selected financial information is outlined below and should be read in conjunction with Touchstone's June 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.

Second Quarter 2026 Financial and Operating Highlights * Funds flow from operations: Increased to $7.13 million from $1.85 million in the prior quarter, primarily driven by a $4.07 million increase in operating netback. * Net income: Delivered net income of $2.34 million ($0.01 per basic and diluted share), reversing the first quarter 2026 net loss of $2.38 million. * Capital investments: Deployed $1.52 million in capital expenditures focused on high-impact development initiatives, including the FR-1836 crude oil development well and the Cascadura booster compression project. * Production: Achieved 4,433 boe/d, representing a 5% decrease from 4,657 boe/d in the first quarter of 2026, primarily due to planned third-party infrastructure maintenance at Atlantic LNG that temporarily constrained natural gas production. * Petroleum and natural gas sales: Totalled $17.47 million, a 39% increase from $12.54 million in the prior quarter, driven primarily by higher realized pricing across all commodity streams. * Realized commodity pricing: * Crude oil and liquids: Averaged $70.13 per barrel, a 19% improvement from $59.02 per barrel in the first quarter of 2026. * Natural gas: Combined pricing averaged $4.93 per Mcf, up from $3.00 per Mcf in the preceding quarter. Ortoire block realized pricing remained steady at $2.55 per Mcf. Central block realized pricing increased 93% sequentially to approximately $6.56 per Mcf, as June natural gas volumes were redirected to Atlantic LNG Train 2/3 during the Train 4 downtime. * Operating netback: Generated $24.37 per boe, representing a 77% improvement over the $13.73 per boe recorded in the preceding quarter. * Net debt and deleveraging: Reduced net debt by 10% sequentially to $68.71 million at quarter-end, supported by $3.55 million in bank debt principal repayments funded through cash flow and financing proceeds. * Strategic financing and capital structure: Completed a multi-jurisdictional integrated financing in the quarter for net proceeds of $10.20 million, initially comprising an issuance of 26,631,330 common shares and an $8.40 million debenture. Subsequent to quarter-end, the $8.4 million debenture was repaid in full, and the repayment proceeds were redirected to the related subscription by Purebond for 89,765,000 common shares, fully converting the financing into equity and eliminating the debt obligation.