Touchstone Exploration Inc. (TXP:CA) Discusses VAT Recovery Status and Debt Covenant Strategy for 2025-2026 Transcript

Kenneth McKinnon

Good afternoon, and thank you for joining us. I’m Ken McKinnon, Chair of Touchstone. And before handing over to Paul and Brian, who will take you through the presentation, I wanted to outline what I and the Board see as strategic priorities in the near to medium term.

Firstly, we need to work to reverse the significant decline in the share price and deliver returns to shareholders. You will see in the presentation the strong foundation we have built and the opportunities we have to grow both production and more importantly, cash flow. This will support one of our very immediate priorities, and that’s to deleverage.

The last 18 months have been about building a solid foundation. We’ve secured our equity and loan covenants, integrated the new central block assets and most importantly, we’ve learned how to drill more efficiently at lower cost while reducing G&A. A lot of our leverage has been used to acquire the central block, and you will see that the acquisition is a true game changer, giving us direct access to high-value international LNG pricing.

So in closing, 2026 is about executing a disciplined work program, which will generate funds to both deleverage and continue to grow. Today, Touchstone is at an inflection point. It’s now about execution and ensuring we maximize the returns from our CapEx budget. When we recover — when we get to the right recovery amount that should follow — excuse me, when we get it right, the recovery should follow.

Thank you, and I’ll now hand it over to Paul.