Touchstone Exploration shares fall 14% as going concern warning overshadows full-year results

Touchstone Exploration Inc (AIM:TXP, TSX:TXP, OTC:PBEGF) shares dropped 14% to 9.5p after the TSX and LSE-listed oil and gas producer disclosed material uncertainties over its ability to continue as a going concern, with the company projecting a potential breach of banking covenants by the end of 2026. The Trinidad-focused company said it could breach net senior funded debt and debt service coverage covenants as of 31 December this year, which could render its bank debt immediately repayable, while a working capital deficit of $15.4 million at the year end leaves limited headroom.