Touchstone Exploration Inc. announced that its Trinidadian subsidiary, Primera Oil and Gas Limited (POGL), has entered into Exploration and Production (Public Petroleum Rights) Licences for the Cipero and Charuma blocks. These licenses became effective on July 1, 2024.
The Cipero and Charuma blocks were awarded to POGL through the Trinidad and Tobago 2022 Onshore and Nearshore Competitive Bid Round. The licenses were executed by representatives from POGL, the Government of Trinidad and Tobago, the Trinidad and Tobago Ministry of Energy and Energy Industries (MEEI), and a subsidiary of the National Gas Company of Trinidad and Tobago (NGC).
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POGL holds an 80% operating working interest in each license, while NGC retains the remaining 20%. The licenses initially have a six-year term, with the possibility of a 19-year extension for areas with an MEEI-approved commercial discovery.
The Cipero block encompasses 29,924 acres, while the Charuma block covers 72,784 acres. Under the minimum work commitments for each block, POGL is to conduct five geological studies. Additionally, they are required to reprocess 426 kilometers of 2D seismic data for Cipero and 784 kilometers for Charuma. For the Charuma block, POGL will also reprocess 61 square kilometers of 3D seismic data. Exploration drilling commitments include four wells for Cipero and one well for Charuma. Financial obligations over the initial six-year term amount to US$2.2 million for Cipero and US$4.8 million for Charuma.
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POGL is responsible for 100% of the exploration minimum work commitments and financial obligations over the initial six-year exploration term of the relevant license. These financial obligations include bonuses, lease payments, and surface rental costs.
Touchstone’s Chief Executive Officer (CEO) Paul Baay stated, “This marks a significant milestone for our company as we expand our exploration activities in Trinidad and Tobago. We are committed to fulfilling our obligations and advancing these promising projects.”
