Touchstone Exploration Announces Canadian Private Placement and Proposed UK Placing

Source: 12/6/2022, Location: North America

Touchstone Exploration has launched a private placement in Canada to raise a minimum of C$7.5 million (approx. US$5.5 million and £4.5 million) up to a maximum of C$10 million (approx. US$7.4 million and £6.1 million) at a price of C$0.90 (approx. 54.5 pence) per Common Share of no par value.

The Company further announces a proposed placing in the UK to raise approx. US$5.5 million (approx. £4.5 million and C$7.4 million) through the issue of Common Shares of no par value with institutional and other investors in the United Kingdom at a price of 54.5 pence per UK Placing Share (approx. C$0.90).

The Canadian Private Placement and the UK Placing are expected to raise aggregate gross proceeds of between US$11 million (approx. £9 million and C$14.9 million) and US$13 million (approx. £10.6 million and C$17.5 million) to allow Touchstone to accelerate its Ortoire exploration and development program in Trinidad.

In the event of excess demand, the Company reserves the right to increase the size of the UK Placing and/or the Placing Price.

Background to the Fundraise and Use of Proceeds

In recent years, the Company has been focusing on its successful exploration and development program on the Ortoire block, onshore in the Republic of Trinidad and Tobago (Touchstone 80% working interest), which has identified significant natural gas discoveries at the Coho and Cascadura projects and an oil discovery at Royston.

Touchstone recently completed the development of its facility at Coho and announced initial natural gas production on October 10, 2022, with the Coho-1 well delivering average net natural gas sales of 7.3 MMcf/d (approximately 1,212 boe/d) over 19 operational days in October.

On August 16, 2022, the Company received a Certificate of Environmental Clearance ("CEC") to conduct development operations within the Cascadura area of the Ortoire block from the Trinidad and Tobago Environmental Management Authority. The CEC approved the construction of a multi-well surface production facility with a designed production capacity of 200 MMcf/d of natural gas, 5,000 bbls/d of associated liquids and 200 bbls/d of produced water, with a storage capacity of 8,800 barrels of liquids on the Cascadura A wellsite. In addition to the facility, the CEC includes the drilling of up to eight wells on two additional well pads (Cascadura B and C) and the establishment of associated pipelines and infrastructure within the Ortoire block.

Construction of the Cascadura surface facility and associated infrastructure required to bring production online from the two existing Cascadura wells is in progress. Once production at Cascadura is online, which the Company anticipates will be by the end of the first quarter of 2023, initial gross aggregate natural gas and associated liquids production from the Cascadura-1ST1 and Cascadura Deep-1 wells, based on previous well tests, has been forecasted at approximately 11,500 boe/d (9,200 boe/d net).

In addition to the development of the Cascadura facility, the Company has a portfolio of further exploration and development drilling targets at the Ortoire block. In order to allow the Company to continue to accelerate these prospective exploration, development and production opportunities while the Company's cash balance and cash flows from operations are being allocated towards the Cascadura facility construction, Touchstone is seeking to complete the Canadian Private Placement and the UK Placing in order to side track Royston-1ST1 to drill and test the intermediate and subthrust sheets of the Herrera Formation. Net proceeds will also be applied to bring forward the drilling and potential completion of the Cascadura-2 development well. The funds raised will strengthen the Company's balance sheet and the Company also intends to use a portion of the net proceeds for working capital purposes as it continues constructing the Cascadura facility.

Canada >>  1/30/2023 - Africa Oil Corp. is pleased to announce that the Company repurchased a total of 321,790 Africa Oil common shares during the period of January 23, 2023...
Singapore >>  1/30/2023 - The Board of Directors of Marco Polo Marine Ltd (the “Company”) wishes to announce that the number of issued ordinary shares of the Company (excluding...

United States >>  1/30/2023 - Martin Midstream Partners L.P. announced that its wholly owned subsidiary, Martin Operating Partnership L.P., as borrower, MMLP and certain of MMLP’s ...
United States >>  1/30/2023 - Martin Midstream Partners L.P. has commenced cash tender offers to purchase (i) any and all of the approximately $53.7 million outstanding aggregate p...

United States >>  1/30/2023 - Martin Midstream Partners L.P. and its wholly owned subsidiary, Martin Midstream Finance Corp. (“MMFC” and together with MMLP, the “Issuers”), intend ...
Brazil >>  1/27/2023 - Petrobras informs that it received, up front, the amount of R$ 1.3 billion, regarding the complement of the firm compensation (earnout) for fiscal ye...

Gulf Oil and Gas
Copyright © 2021 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.