WTI (Dec) $61.79 +$3.29, Brent (Dec) $65.99 +$3.40, Diff -$4.20
USNG (Nov) $3.34 -11c, UKNG (Nov) 81.0p -0.01p, TTF (Nov) €32.15 -€0.215

Oil price

Oil is up another 50 cents today, the sanctions play is alive but unless they bite the oversupply in the market should keep the market under control. Problems still exist in Venezuela, Trump is still pursuing drug cartels there and Maduro has apparently mobilised 5,000 Russian missiles just in case…

Worth taking a look at Valero, yesterday they smashed the whisper with earnings of $3.66 against a forecast of $3.05 but they said that refining margins were up 44% in the quarter vs the industry average of 29%. Note that they said that ‘solid demand and falling gasoline and diesel inventories helped’ and that crack and diesel spreads had doubled in the Gulf Coast and North Atlantic markets. 

Reabold Resources

Reabold has noted the announcement today by ADX Energy Ltd regarding the Parta exploration licence in Romania, in which Reabold has an indirect interest through its 50.8% shareholding in Danube Petroleum Limited. ADX holds the remaining 49.2% shareholding in Danube via its wholly owned subsidiary ADX Energy Panonia SRL, and is the operator of Parta.

Panonia has been unable to perform the work plan in Parta due to regulatory constraints, delays and operational access restrictions. ADX was reluctant to enter into exploration phase 2, with additional significant commitments, due to the inability to perform the phase 1 program despite its reasonable efforts. As a result  ADX has been in discussions with the Romanian Regulatory Authorities regarding an extension of the Parta licence. Despite repeated requests, the Regulatory Authority has advised that the exploration phase 1 of the licence has expired. Additionally, the Regulatory Authority has issued Panonia with invoices totalling EUR 4.2 million relating to alleged expenditures relating to the unperformed exploration commitments applicable to Parta.

ADX, on behalf of Panonia, will formally dispute these invoices on the basis of having incurred significant costs to address the unforeseen challenges attributable to the work program, as well as due to the regulatory delays and access restrictions which have prevented Panonia from entirely fulfilling the work program, and denied Panonia the ability to benefit from the potential upside from making a discovery.

Further details can be found in the ADX Energy Ltd ASX release published on 24 October 2025 – https://investors.adx-energy.com/announcements/7225646.

The most important takeout from this announcement is that for Reabold there is no real impact as Romania has been a non-core asset for a while and whilst the operator will likely dispute the invoices, which RBD believe are unjustified, the process will take some time.

In the worst case this would remove any chance of delivering value from Romania, but as it is non-core it won’t impact Reabold at the corporate level and perhaps more importantly they won’t be putting any cash into the situation. 

Away from Romania the outlook for Reabold is getting increasingly exciting on a number of fronts and the shares are up 25% in the last six months, this could be the start of a much deserved longer term rally which would come as no surprise. 

Touchstone Exploration

Touchstone has announced that it has conditionally raised £6.32 million (approximately US$8.44 million) by way of a private placement of 57,454,545 new common shares in the Company with no par value to certain new and existing investors at a price of 11 pence (approximately C$0.206) per Common Share.

The Company is proposing to raise up to an additional £0.68 million before expenses (approximately US$0.91 million) by way of a retail offer to its existing shareholders via the Bookbuild Platform (the “Retail Offer”) of up to 6,181,818 new Common Shares at the Placing Price (together with the Common Shares issuable under the Placing, the “Offered Shares”). A separate announcement will be made regarding the Retail Offer and its terms. For the avoidance of doubt, the Placing is separate from, and does not form part of, the Retail Offer.

The Company intends to use the net proceeds of the Placing, together with any funds raised under the Retail Offer, to continue its revised 2025 capital program and to satisfy the remaining equity raising requirement under the Company’s Fourth Amended and Restated Loan Agreement with Republic Bank Limited (the “Loan Agreement”).

Further Details of the Placing

Pursuant to the Placing, a new investor, Purebond Limited, and certain existing investors have agreed to subscribe for 57,454,545 new Common Shares at the Placing Price, to raise gross proceeds of £6.32 million (approximately US$8.44 million). The Placing Price represents a 2.2 percent discount to 11.25 pence, which was the closing price of the Common Shares on the AIM market (“AIM”) of the London Stock Exchange on October 23, 2025.

Purebond Limited is a UK registered entity controlled and managed by the Kansagra family. A condition of Purebond’s participation in the Placing is that it receives the right to appoint one nominated non-executive director to the Company’s Board of Directors (the “Board”) while its interest in the Company’s total issued share capital remains above 15 percent. Accordingly, the Company has entered into an investor rights agreement with Purebond Limited which confers the Board appointment right. Subject to completion of standard regulatory due diligence, Purebond Limited has indicated that it intends to nominate Bhupendra Kansagra, a director of Purebond Limited, as its Board nominee. A further announcement will be made in this respect in due course. 

Use of Proceeds

The net proceeds from the Placing and the Retail Offer are expected to be used to fund the Company’s revised 2025 capital program, as outlined below. The planned expenditures include drilling one development well on the Company’s Central block and capital investments related to the Cascadura natural gas facility compression project, which is scheduled for completion in the second quarter of 2026.

Paul R. Baay, President and Chief Executive Officer, commented:
“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.

We are grateful for the continued support of our existing investors and are pleased to welcome Purebond as a significant new shareholder in Touchstone. This strategic investment strengthens our financial position and adds valuable expertise to our Board through the appointment of Mr. Kansagra, a UK-based director with extensive experience in the resource sector and capital markets.“

Touchstone needed to make this raise after the debacle in the earlier raise which was not their fault so with the portfolio looking forward is exciting and in particular on the Central block it is good news. There remains substantial upside in the stock which now the management should be able to deliver.

Admission of the Offered Shares

Application has been made for the Offered Shares to be admitted to trading on the Toronto Stock Exchange (“TSX”) and AIM (“Admission”). Subject to the receipt of required approvals from the TSX and AIM, the Offered Shares are expected to be issued and admitted to trading at or before 8.00 a.m. (London time) on October 30, 2025.

The Placing is conditional on, among other things, Admission becoming effective (including final approval for the listing of the Offered Shares on the TSX) and the placing agreement entered into between the Company and Shore Capital in connection with the Placing not being terminated in accordance with its terms. The Common Shares to be issued pursuant to the Placing will, when issued, represent approximately 18 percent of the total share capital of the Company on Admission (before the issue of any Common Shares pursuant to the Retail Offer). Shore Capital acted as broker in connection with the Placing.

The Offered Shares will, when issued, rank pari passu in all respects with the Company’s existing issued Common Shares. All Offered Shares being issued by the Company pursuant to the Placing and the Retail Offer will be freely transferable; however, any of these Offered Shares that are resold to residents of Canada (or any person otherwise subject to the securities laws of any jurisdiction of Canada) will be subject to applicable Canadian securities laws, which may include restrictions on resale, whether through a Canadian exchange or otherwise.

Update on May 8, 2025 Private Placement

On June 30, 2025, Touchstone Exploration Inc. announced that £10,324,500 of the £15,375,000 gross proceeds had not been received as of the TSX‑approved closing deadline of June 27, 2025. As a result, the Company closed on £5,050,500 in gross proceeds and issued 24,636,585 Common Shares.

The Company has not received any further proceeds from the May 8, 2025 private placement to date. Accordingly, the Company believes it is unlikely that it will receive the outstanding balance of proceeds of £10,324,500 and has therefore completed the Placing to secure its near-term capital requirements.

The Company has reserved all rights in connection with the May 8, 2025 private placement and, following the completion of the Placing, it has determined that it will not be pursuing litigation at this time.

Updated Guidance

On August 14, 2025, the Company announced its revised 2025 operational and financial guidance (the “Revised Guidance”). Following the incorporation of the Central block assets and the development activities at Cascadura reported on September 29, 2025, Touchstone provides the following updates to the Revised Guidance.

• Average daily production: Primarily as a result of the Cascadura-5 well expected to be brought onstream in November 2025 and initial production from the Cascadura-4ST2X well now anticipated in 2026, the Company expects 2025 daily average production of 4,700 to 5,300 boe/d. This represents a decrease of approximately 600 boe/d (11 percent) compared to the 5,600 boe/d midpoint previously estimated in the Revised Guidance.
• Funds flow from operations: Updated guidance forecasts funds flow from operations of approximately $6 million, compared to $11 million in the Revised Guidance. The change in estimated Cascadura development well online dates noted above primarily resulted in the $5 million (45 percent) decrease from the prior estimate.
• Capital expenditures: Based on the anticipated reduction in funds flow from operations, the Company has elected to defer the drilling of two WD-8 crude oil development wells. This results in a $3 million decrease in capital spending, partially offset by a $1 million increase in Cascadura-4ST2X costs, for total estimated 2025 capital expenditures of $26 million, representing a $2 million reduction from the $28 million contemplated in the Revised Guidance.
• Net debt: Reflecting the anticipated decrease in funds flow from operations and the revised capital program, Touchstone expects to exit 2025 with net debt of approximately $65 million, representing an increase of $1 million (2 percent) from the $64 million disclosed in the Revised Guidance.

For further details regarding the Company’s Revised Guidance and the related advisories (which are incorporated by reference herein), please refer to the Company’s news release dated August 14, 2025 titled “Touchstone Exploration Announces Second Quarter 2025 Results”, available on the Company’s profile on www.sedarplus.ca and on its website at www.touchstoneexploration.com.

Touchstone Exploration Inc. announces a retail offer to raise up to £0.68 million via BookBuild (the “Retail Offer”) by way of the issue of up to 6,181,818 new common shares with no par value (“Common Shares”) in the capital of the Company (the “Retail Offer Shares”) at an issue price of 11 pence per Retail Offer Share (the “Issue Price”).

In addition to the Retail Offer, the Company is also conducting a placing of new Common Shares (the “Placing Shares” and together with the Retail Offer Shares, the “New Common Shares”) at the Issue Price (the “Placing” and together with the Retail Offer, the “Issue”). A separate announcement has been made regarding the Placing and its terms. For the avoidance of doubt, the Retail Offer is not part of the Placing. 

The Issue Price represents a discount of approximately 2.2 per cent to the closing share price of 11.25 pence per existing Common Share on October 23, 2025, being the last practicable date prior to the announcement of the Placing.

The proceeds of the Retail Offer will be utilised in the same way as the proceeds of the Placing, as set out in the separate announcement of the Placing released by the Company at 7.00 a.m. on October 24, 2025.

The Retail Offer is conditional on the New Common Shares to be issued pursuant to the Retail Offer being admitted to trading on the Toronto Stock Exchange (“TSX”) and the AIM market (“AIM”) operated by the London Stock Exchange (“Admission”). Admission of the New Common Shares pursuant to the Retail Offer is expected to take place on or around 8.00 a.m. (London time) on October 30, 2025. Completion of the Retail Offer is conditional, inter alia, upon the completion of the Placing.

Expected Timetable in relation to the Retail Offer

Any changes to the expected timetable set out above will be notified by the Company through a Regulatory Information Service. References to times are to London times unless otherwise stated.

Dealing Codes

Retail Offer

The Company values its retail shareholder base, which has supported the Company alongside institutional investors since the Company’s admission to AIM in 2017. Given the support of retail shareholders, the Company believes that it is appropriate to provide its retail shareholders in the United Kingdom the opportunity to participate in the Retail Offer. The Company is therefore making the Retail Offer available in the United Kingdom through the financial intermediaries which will be listed, subject to certain access restrictions, on the following website:

https://www.bookbuild.live/deals/NQN32Q/authorised-intermediaries

Shore Capital Stockbrokers Ltd will be acting as retail offer coordinator in relation to this Retail Offer (the “Retail Offer Coordinator”).

Existing retail shareholders can contact their broker or wealth manager (“Intermediary”) to participate in the Retail Offer. In order to participate in the Retail Offer, each intermediary must be on-boarded onto the BookBuild platform and agree to the final terms and the retail offer terms and conditions, which regulate, inter alia, the conduct of the Retail Offer on market standard terms and provide for the payment of commission to any intermediary that elects to receive a commission and/or fee (to the extent permitted by the FCA Handbook Rules) from the Retail Offer Coordinator (on behalf of the Company).

Any expenses incurred by any intermediary are for its own account. Investors should confirm separately with any intermediary whether there are any commissions, fees or expenses that will be applied by such intermediary in connection with any application made through that intermediary pursuant to the Retail Offer.

The Retail Offer will be open to eligible investors in the United Kingdom who are existing shareholders at 7:05 a.m. on 24 October 2025. The Retail Offer is expected to close at 4:30 p.m. on 28 October 2025. Investors should note that financial intermediaries may have earlier closing times. The Retail Offer may close early if it is oversubscribed.

If any intermediary has any questions about how to participate in the Retail Offer on behalf of existing retail shareholders, please contact BookBuild at email: support@bookbuild.live.

The Retail Offer, the subject of this announcement, is and will, at all times, only be made to, directed at and may only be acted upon by those persons who are shareholders in the Company. To be eligible to participate in the Retail Offer, applicants must meet the following criteria before they can submit an order for Retail Offer Shares: (i) be a customer of one of the participating intermediaries listed on the above Bookbuild website; (ii) be resident in the United Kingdom and (iii) be a shareholder in the Company (which may include individuals aged 18 years or over, companies and other bodies corporate, partnerships, trusts, associations and other unincorporated organisations and includes persons who hold their shares in the Company directly or indirectly through a participating intermediary). For the avoidance of doubt, persons who only hold CFDs, Spreadbets and/or similar derivative instruments in relation to shares in the Company are not eligible to participate in the Retail Offer.

The Company reserves the right to scale back any order at its discretion. The Company reserves the right to reject any application for subscription under the Retail Offer without giving any reason for such rejection.

It is vital to note that once an application for Retail Offer Shares has been made and accepted via an intermediary, it cannot be withdrawn.

The New Common Shares will, when issued, be credited as fully paid and will rank pari passu in all respects with existing Common Shares including the right to receive all dividends and other distributions declared, made or paid after their date of issue.

The Retail Offer is an offer to subscribe for transferable securities, the terms of which ensure that the Company is exempt from the requirement to issue a prospectus under Regulation (EU) 2017/1129 as it forms part of UK law by virtue of the European Union (Withdrawal) Act 2018. It is a term of the Retail Offer that the aggregate total consideration payable for the Retail Offer Shares will not exceed £1 million. The exemption from the requirement to publish a prospectus, set out in section 86(1)(e) of the Financial Services and Markets Act 2000 (as amended), will apply to the Retail Offer.

The Retail Offer is not being made into any jurisdiction other than the United Kingdom or to US Persons (as defined in Regulation S of the US Securities Act 1933, as amended).

No offering document, prospectus or admission document has been or will be prepared or submitted to be approved by the Financial Conduct Authority (or any other authority) in relation to the Retail Offer, and investors’ commitments will be made solely on the basis of the information contained in this announcement and information that has been published by or on behalf of the Company prior to the date of this announcement by notification to a Regulatory Information Service in accordance with the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules and the Market Abuse Regulation (EU Regulation No. 596/2014) (“MAR”) as it forms part of United Kingdom law by virtue of the European Union (Withdrawal) Act 2018 (as amended).

There is a minimum subscription of £100.00 per investor under the terms of the Retail Offer which is open to investors in the United Kingdom subscribing via the intermediaries which will be listed, subject to certain access restrictions, on the following website:

https://www.bookbuild.live/deals/NQN32Q/authorised-intermediaries

There is no maximum application amount to apply in the Retail Offer. The terms and conditions on which investors subscribe will be provided by the relevant financial intermediaries, including relevant commission or fee charges.

Investors should make their own investigations into the merits of an investment in the Company. Nothing in this announcement amounts to a recommendation to invest in the Company or amounts to investment, taxation or legal advice.

It should be noted that a subscription for Retail Offer Shares and investment in the Company carries a number of risks. Investors should take independent advice from a person experienced in advising on investment in securities such as the Retail Offer Shares if they are in any doubt.

Prospex Energy

Prospex has confirmed that gas production from the Viura‑1B well in the Viura gas field in northern Spain has reached the planned plateau rate of 180,000 normal cubic metres per day.  The operator of the Viura field, HEYCO Energía Iberia S.L. (“HEI” or the “Operator”) brought the well back into production on Friday 17 October 2025.

The reported flow rate of gas on 22 October 2025 from the Viura-1B well was 186,333 normal cubic metres, which is equivalent to 196,490 standard cubic metres or 6.9 million standard cubic feet.  This rate was achieved at a 30% choke setting.  This will be the ongoing plateau production rate.  The water cut continues to be low and is reducing.

Prospex owns 7.24% of the Viura field through its ownership of 7.5% of HEI.  Prospex is accruing 14.47% of the production income from the Viura gas field until payback of its initial capital investment (expected to be ≈£8 million) plus the accrued 10% p.a. interest thereon.

Mark Routh, Prospex’s CEO, commented:
“I am very pleased to confirm that the flow rate of natural gas from the Viura-1B well in the Viura field has achieved the planned plateau production rate within a week of the recommencement of production last Friday.  The confirmation of the performance of this reservoir is especially pleasing after the recent frustrating one-off event which delayed the resumption of production after the successful workover in July.

“This confirms our view that Viura is a prolific gas field and was an excellent addition to our portfolio and that it is likely to continue production and cash flows long into the future.”

Good news after the disappointment of the summer and the flow rate will be very good for Prospex, albeit Viura is still a modest contributor. I hope it encourages Mark and team to keep investing as per the most recent announcement. 

Original article   l   KeyFacts Energy Industry Directory: Malcy's Blog