Canadian energy company Touchstone Exploration has reported increased oil production from two newly completed development wells in Trinidad and Tobago, while also forecasting stronger natural gas revenues amid maintenance work at Atlantic LNG.

In an operational update issued this week, the company said the FR-1835 and FR-1836 development wells on the WD-8 block were successfully completed and brought into production in mid-May.

Since startup, the two wells have collectively produced an average of approximately 175 barrels of medium-gravity crude oil per day, which the company said is in line with internal expectations.

Touchstone President and Chief Executive Officer Paul Baay said the new wells are expected to provide immediate and stable cash flow as global crude oil prices remain elevated.

“Operationally, our focus remains on efficiently converting reserves into near-term cash flow,” Baay said in a statement.

He added that the drilling costs for both wells were funded by the drilling operator through a strategic asset exchange agreement completed in 2025.

The company also expects to benefit from improved natural gas pricing during a scheduled maintenance shutdown at Atlantic LNG Train 4, which began on May 26 and is expected to continue through July 19.

According to Touchstone, natural gas volumes from its Central block are being redirected to Atlantic LNG Train 2/3 and the domestic market during the outage period.

The company said this temporary diversion is anticipated to positively impact realized gas prices because pricing formulas linked to Train 2/3 are higher than those tied to Train 4.

It also pointed to strong domestic industrial demand driven by Trinidad and Tobago’s methanol and ammonia sectors.

At the Cascadura facility on the Ortoire block, installation work on a new booster compressor is continuing, with commissioning expected to begin in June.

Touchstone said the compressor is designed to reduce wellhead backpressure and improve production efficiency by helping to address regional pipeline capacity limitations.

Meanwhile, the company is preparing an intervention programme at its Carapal Ridge 3 (CR-3) well to address what it described as a localized inflow restriction within the formation.

The CR-3 well has so far been producing an estimated 2.2 million cubic feet of natural gas per day along with approximately 14 barrels of condensate daily.

Touchstone said reservoir analysis suggests residual drilling and completion fluids may be limiting production, and it plans to carry out a coiled tubing cleanout and acid stimulation programme to improve output.

However, the intervention has been delayed because the only local coiled tubing service provider is currently repairing equipment issues and sourcing replacement parts.

The company said it is also assessing whether it may be commercially advantageous to postpone the work until the Atlantic LNG maintenance window concludes, allowing it to continue benefiting from the current gas pricing environment.