WTI (July) $93.04 -$2.98, Brent (Aug) $95.03 -$2.78, Diff -$1.99 +20c.
USNG (July) $3.34 +13c, UKNG (July) 118.64p, TTF (July) €48.93 -€0.045

Oil price

Oil is flat today as markets take the view that the key blockage to any US/Iran deal is the Israel/Lebanon ceasefire so given that’s happening things may well look better over the weekend. I’m not expecting much from Opec who are keeping their heads down…

Touchstone Exploration

Touchstone has announced that, further to the Company’s announcement dated June 4, 2026 regarding the Fundraise, the Company has initially raised aggregate gross proceeds (before expenses) of US$10.9 million (approximately £8.1 million and C$15.0 million) at the Issue Price of 7 pence per New Common Share.

Of the aggregate gross proceeds raised to date, approximately US$10.3 million (approximately £7.7 million and C$14.3 million) is being subscribed for by the Company’s largest shareholder, Purebond Limited, by way of the aggregate of the First Tranche Subscription Shares and the Debt Securities (each as defined in the Fundraise Announcement, which also provides further details of the Subscription Agreement).

The WRAP Offer remains open for participation and a further announcement will be made upon its closing confirming, inter alia, the final aggregate number of New Common Shares to be issued, allocations to Purebond, and related party transaction disclosures.

This raise, as forecast by the company in recent announcements, is a welcome chance for Touchstone to rebuild the balance sheet, including paying down historic debt, but also will enable the company to fund the upcoming development wells and to finance recompletions and workovers on existing stock. 

With a handle on helping its working capital, and of course as I have mentioned a number of times in recent months, giving the ability to continue the transition to the anticipated higher margin Central Block marketing contracts this will settle Touchstone considerably. 

Finally the recent uncertainty has been sorted, with operational progress and more to come, aided by higher International prices and better gas contracts in the near term and with the Cascadura  compressor on the way I remain positive.

Touchstone yesterday announced the launch of an integrated financing to raise gross proceeds of between US$10 million and US$15 million (between approximately £7.4 million / C$13.9 million and £11.2 million / C$20.8 million), of which US$10 million is expected to be provided by Touchstone’s largest existing shareholder, Purebond Limited.

The Fundraise will be conducted via the issue of new common shares of no par value in the capital of the Company at a price of 7 pence (equivalent to approximately C$0.13) each and consists of:

• an aggregate investment of up to US$10 million by Purebond Limited, comprising (i) a direct subscription by Purebond for new Common Shares  at the Issue Price pursuant to the subscription agreement entered into with the Company dated June 4, 2026, subject to clawback to satisfy valid applications pursuant to the Placing and the LIFE Offering (both as defined below) and (ii) pursuant to the Subscription Agreement and the related repayment and subscription agreement between the Company and Purebond, unsecured non-convertible debt securities of the Company in connection with the Fundraise; such Debt Securities are not issued at the Issue Price;
• a non-pre-emptive placing of new Common Shares at the Issue Price to certain institutional and other investors, to be carried out by way of an accelerated bookbuild;
• a non-pre-emptive private placement of new Common Shares at the Issue Price to certain investors in Canada pursuant to the Listed Issuer Financing Exemption; and a non-pre-emptive retail offer through the Winterflood Retail Access Platform to raise gross proceeds of up to £0.74 million (US$1.0 million / C$1.4 million) through the issue of new Common Shares at the Issue Price to be made on terms outlined in a separate announcement.

The Issue Price represents a 3.4 percent discount to 7.25 pence, which was the closing price of the Common Shares on the AIM market of the London Stock Exchange on June 3, 2026. The Placing is to be conducted by way of an accelerated bookbuild process which will commence immediately following this Announcement and will be subject to the terms and conditions set out in Appendix 1 to this Announcement.

Background to the Fundraise and Intended Use of Proceeds The net proceeds from the Fundraise are intended to accelerate the Company’s 2026 development program and fortify its financial position. Specifically, capital will be deployed to:

• Execute high-impact drilling: Fund the next phase of development wells to drive near-term volume growth. Enhance existing assets: Perform low-cost, production-enhancing recompletions and workovers across the asset portfolio.
• Strengthen the balance sheet: Reduce aged trade payables and resolve historical working capital constraints. Operational Performance and Pricing Dynamics The Company has continued to advance its operational and development activities during 2026. Average daily production for the quarter ended March 31, 2026 rose 8 percent year-over-year to 4,657 boe/d, with April 2026 sales volumes averaging 4,700 boe/d.

A significant catalyst for revenue growth lies in the Company’s transition to anticipated higher-margin Central block marketing contracts:

• Current realizations: March 2026 Central block LNG sales volumes achieved US$4.22/MMBtu (net of LNG fees) under the current Train 4 agreement.
• Near-term upside: All gross production exceeding 7.1 Bcf (approximately 4.6 Bcf net) for the October 2025 to September 2026 period is eligible for nomination to the Atlantic LNG Train 2/3 marketing contract.
• The arrangement utilizes pricing formulas that are more directly linked to international LNG pricing benchmarks and, based on pricing assumptions used in the Company’s March 2026 forecasts, was estimated to generate net realizations of approximately US$11.75/MMBtu (net of LNG fees). Due to scheduled Train 4 and pipeline infrastructure maintenance periods running through July 19, 2026, the Company is currently redirecting and selling Central field production through this higheryielding Train 2/3 contract and the domestic market.
• Future flexibility: The Train 4 agreement expires in May 2027, allowing the Company to transition all Central block production volumes to the Train 2/3 contract over the longer term. 2026 Development Plan The Company has achieved strong operational progress on its 2026 capital program, as the FR-1835 and FR-1836 development wells on the WD-8 block were successfully drilled, completed and placed on production in mid-May 2026.

Key Upcoming Milestones:

• Second Quarter 2026: Commissioning of the Cascadura booster compressor is targeted for June to stabilize production and increase plant deliverability.
• Third Quarter 2026: Planned activities include drilling two development commitment wells on the WD-4 block(1) , executing a targeted recompletion and workover program across the Central and Ortoire blocks, and spudding the Central block BR-2 well.
• Fourth Quarter 2026: Integration of the new WD-4 and BR-2 wells into the production stream and commencement of drilling the CR-4 development well(1) on the Central block. (1)Note that the drilling of the WD-4 and the CR-4 development wells are contingent on the Company raising in excess of US$10 million as disclosed below. Production Potential Successful execution across the WD-4, Cascadura, and Central blocks provides for the potential for a meaningful increase in production volumes. Management estimates that average production could grow from approximately 4,700 boe/d to approximately 6,800 boe/d by March 2027. The majority of this incremental growth is expected to be driven from the Central block wells. These figures represent potential production levels based on successful development outcomes and remain subject to operational progress, final funding levels, and individual well productivity. Liquidity and Going Concern Considerations A portion of the proceeds from the fundraise are expected to be used to strengthen liquidity and reduce working capital constraints identified in the going concern note included in the Company’s March 31, 2026, unaudited interim condensed consolidated financial statements.

Under Management’s current assumptions, including the lower US$10 million funding scenario, this strategic use of capital is expected to mitigate the risk of year-end 2026 financial covenant breaches under its Trinidad-based loan agreement.

Additionally, the Company has secured a formal waiver from its lender, eliminating the testing of the debt service coverage covenant for the 2026 financial year. Expected Use of Proceeds Description of use of gross proceeds from the Fundraise (millions of US$) US$10 million case US$15 million case Well workovers (Cascadura and Central) 1.1 1.1 WD-4 block (Two minimum commitment wells) – 2.7 New drill – BR-2 (Central) 4.0 4.0 New drill – CR-4 (Central) – 1.8 Working capital and vendor payables 8.4 10.1 Less: forecasted funds flow from operations (3.5) (4.7) Total gross proceeds 10.0 15.0 Related Party Participation Purebond has entered into a Subscription Agreement with the Company as part of the Fundraise.

Concurrent with the Placing, the LIFE Offering and the Subscription, there will be a separate offer by the Company on the Winterflood Retail Access Platform (“WRAP”) of WRAP Offer Shares at the Issue Price to provide UK retail investors with an opportunity to participate in the Fundraise. The WRAP Offer will be made on terms outlined in a separate announcement to be made shortly. For the avoidance of doubt, the WRAP Offer is not part of the Placing, nor is it underwritten, and is the sole responsibility of the Company.

Reabold Resources

Another share notification today as Rohan Oza has announced a stake of 14.31% up from 5.64% having been the cornerstone investor in the last fundraise. As I have said before this involvement is exciting for Reabold management and shareholders who I imagine like the idea of a high profile investor out of the USA with deep pockets backing the company. 

I remain confident that Reabold have an exciting period ahead of them, expect activity at West Newton as they recomplete a well later this year and at Colle Santo where the onshore LNG play has increased in value as European gas prices stay firm and other players are getting involved. 

My target price of 500p may look demanding but I remain happy with that, the upside is substantial and perfectly achievable. The shares have performed very well but from a very low base, up some 160% over six months and 134% year on year shows that investors of all shapes and sizes have Reabold inn their sights.

Prospex Energy

Prospex has announced that it has been notified that on 4 June 2026, Tom Reynolds, CEO of the Company, purchased 698,549 ordinary shares of 0.1 pence each in the Company at an average price of 3.58 pence per Ordinary Share.

Following this transaction, Tom Reynolds has a beneficial interest in 698,549 Ordinary Shares, representing approximately 0.16 per cent of the Company’s total issued share capital.

This is a meaningful announcement from Prospex, I always comment when directors buy shares for cash as it counts for a great deal and this is no exception. Tom Reynolds has spent the last four months getting under the hood at Prospex and to me has done a good job in all areas.

Having got up to speed with the assets and made important portfolio decisions, Tom has clearly decided that the prospects are very good and that there is great potential for re-rating so he has put his money where his mouth is and acted accordingly. 

The timing is also noteworthy, I think that buying at this point actually indicates more confidence than the empty signal given transmitted when a CEO sometimes gives when buying stock immediately on walking in the door. 

I remain very confident that Prospex has a bright future, its portfolio strong in today’s strong European gas market and with a good combination of development, appraisal and exploration upside and all well funded by the recent oversubscribed raise.