Touchstone Exploration in deal for exchange of onshore assets in T&T

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Touchstone Exploration’s Trinidadian subsidiary, Primera Oil and Gas Limited has entered a new Asset Exchange deal with Lease Operators Limited to see the exchange of onshore Trinidad assets.

Touchstone will be transferring the Fyzabad, San Francique and Barrackpore blocks – which currently produce aggregate crude oil volumes of approximately 130 barrels per day (bpd) – in exchange for the Rio Claro, Balata East and Balata East Deep Horizons blocks, which offset the Ortoire block and currently produce aggregate crude oil volumes of approximately 35 bpd.

According to a press release, Touchstone has agreed to swap its operated 100% working interests in the Fyzabad, San Francique and Barrackpore producing blocks for the counterparty’s working interest in the Rio Claro, Balata East and Balata Deep blocks for no cash consideration with the swap becoming effective upon closing.

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“The proposed exchange of assets further high-grades our portfolio as we focus on the Herrera turbidite fairway directly offsetting our Ortoire block in close proximity to our Cascadura discovery,” Paul Baay, President and Chief Executive Officer said.

Touchstone received regulatory approval in August last year to move ahead with its Cascadura gas project from the Ortoire block offshore. Construction has now begun on a multi-well surface production facility with a designed production capacity of 200 million cubic feet of natural gas per day; 5,000 barrels per day of associated liquids and 200 barrels per day of produced water. The facility will also have a storage capacity of 8,800 barrels of liquids on the Cascadura A wellsite.

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With a review of the data on the three licenses, Baay added that Touchstone has identified numerous drilling opportunities that can be incorporated into its infrastructure currently being constructed.

The Agreement remains subject to certain closing conditions, including receipt of applicable regulatory approvals and an extension of the Rio Claro Exploration and Production (Public Petroleum Rights) Licence (the “Rio Claro Licence”), and is expected to close prior to the end of 2023.

The 100% working interest Balata East block is governed by an Enhanced Production Service Contract with Heritage Petroleum Company Limited in the shallow horizon that is effective through June 30, 2030. The Balata Deep asset is a 100% working interest in the area identified in the Balata East block from a depth of 5,000 feet downwards with no limit.

The Balata Deep block is governed by an Exploration and Production (Public Petroleum Rights) Licence with the Trinidad and Tobago Ministry of Energy and Energy Industries (MEEI), where the initial exploration period expires on August 13, 2025. The Rio Claro Licence with the MEEI is currently expired, and an extension through August 2025 is a condition precedent for closing. The Rio Claro Licence is for an 80% operated working interest, with Heritage holding the remaining 20% working interest.

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