Touchstone Exploration (TSX, LSE:TXP) has launched a new financing initiative - comprising a placing, a share subscription from major shareholder Purebond, an offer to Canadian investors, and a retail offer in London - together targeting between $10 million and $15 million of new equity.
New shares will be priced at 7p each.
Touchstone, a junior oil and gas company operating in the Caribbean, says proceeds will fund high‑impact development wells, recompletions and workovers of existing wells, and strengthen the balance sheet, to resolve historical working capital constraints.
It comes against a backdrop of high oil prices, which creates a lever on the profitability and cash flow available from marginal wells, changing the threshold for commercial viability, and also boosts the investment case for optimising established mature fields.
Today, Touchstone reported average production of 4,657 barrels of oil per day for the quarter ended 31 March, and noted that April yielded 4,700 boe/d.
Touchstone said management estimates anticipate that the phase of investment in development operations could lift output to about 6,800 boe/d by March 2027, based on a fundraise in excess of US$10 million.
Moreover, it told investors that a successful raise should mitigate the risk of year‑end covenant breaches, and said it has obtained a waiver removing the 2026 debt service coverage test from its lender.
