Touchstone Exploration Inc. has signed an Exploration and Production License with the Ministry of Energy and Energy Affairs of Trinidad and Tobago for the Ortoire Block in Southern Trinidad. Under the terms of the License, Touchstone is the operator with an 80 percent working interest. The Petroleum Company of Trinidad and Tobago holds the remaining 20 percent partner interest and will be carried for the License minimum work obligations. The License is effective for an initial term of six years and can be extended a further 25 years in the event of a commercial discovery.
The Ortoire Block is located approximately ten kilometers east of Touchstone’s Trinidad office in Fyzabad and covers approximately 44,731 gross acres (35,785 net to Touchstone). The License includes a commitment for a six year minimum work program which includes technical reviews, an 85 kilometer 2D seismic program and a four well drilling program. Capital requirements associated with the minimum work obligations total approximately $11 million USD over the initial six year term of the License and are expected to be funded from operating cash flows.
James Shipka, Chief Operating Officer, said “the Ortoire Exploration Block adds a significant and exciting exploration opportunity to our Trinidad oil portfolio. Preliminary work on the block performed to date has identified several interesting prospects adjacent to and on trend with established production and at depths shallower than 6,000 feet which is consistent with our current drilling programs.”
Michael Loewen, Country Manager, said “we look forward to moving ahead with our exploration program on the Ortoire Block, which has the potential to contribute meaningful oil volumes to Trinidad and Tobago and provide employment opportunities in the local communities.”
The addition of the Ortoire Exploration Block brings Touchstone's total land holdings in Trinidad and Tobago from approximately 24,500 working interest acres to 60,300 net acres, 55,000 of which are located onshore.
