LONDON (ShareCast) - (Sharecast News) - Touchstone Exploration said on Friday that it has conditionally raised £6.32m through a private placing of new shares, and planned to raise up to a further £0.68m via a retail offer to existing shareholders, with proceeds earmarked to fund its revised 2025 capital programme and meet obligations under its loan agreement with Republic Bank.
The AIM-traded company said the placing comprised 57.5 million new common shares at 11p each, representing a 2.2% discount to the previous day's closing price.

New investor Purebond, alongside existing shareholders, participated in the raise.

Under the agreement, Purebond would have the right to appoint a non-executive director to Touchstone's board while its shareholding remained above 15%.

Subject to due diligence, it intended to nominate its director Bhupendra Kansagra.

The company said proceeds from the placing and retail offer would be used to fund drilling of one development well on the Central block in Trinidad and to support the Cascadura natural gas facility compression project, scheduled for completion in the second quarter of 2026.

"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," said chief executive Paul Baay.

"We are grateful for the continued support of our existing investors and are pleased to welcome Purebond as a significant new shareholder in Touchstone."

Touchstone said application had been made for the new shares to be admitted to trading on both the Toronto Stock Exchange and AIM, with admission expected by 30 October.

The shares would represent about 18% of the company's issued share capital before the retail offer.

Touchstone also updated its guidance, reflecting revised timelines for bringing new wells onstream.

Average daily production for 2025 was now expected to range between 4,700 and 5,300 barrels of oil equivalent per day, down around 11% from previous estimates, while forecast funds flow from operations had been cut to about $6m from $11m.

Capital expenditure for the year had been reduced to $26m, and Touchstone said it expected to end 2025 with net debt of roughly $65m.

At 1117 BST, shares in Touchstone Exploration were up 2.93% at 11.58p.

Reporting by Josh White for Sharecast.com.

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