Touchstone Exploration Inc (AIM:TXP, TSX:TXP, OTC:PBEGF) said it has agreed an asset swap deal in Trinidad which sees it trade legacy production interests in return for acreage adjoining its Ortoire block.
The company told investors its subsidiary Primera Oil and Gas, would transfer ownership of the Fyzabad, San Francique and Barrackpore blocks, which are all considered non-core and together host some 130 barrels of oil daily oil production
In exchange, it will receive the Fyzabad, San Francique and Barrackpore blocks which together presently produce 35 barrels per day but also are considered by Touchstone to comprise “highly prospective exploration and development acreage contiguous to Ortoire”.
Touchstone said the new acreage gained in the deal will allow it to significantly expand development prospects adjacent to our Cascadura and Royston discoveries.
“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,” said Touchstone chief executive Paul Baay in a statement.
“With the technical data that we have reviewed on the three licences, we have identified numerous drilling opportunities that can be incorporated into our infrastructure currently being constructed,” he added.
Cascadura is the larger of the company’s recent new discoveries, made within the Ortoire block, estimated to come online in 2023 with an anticipated initial net production rate of around 9,200 barrels of oil equivalent (boe).
Coho, also found within Ortoire, meanwhile came online in 2022 and by October was producing some 1,212 boe per day.
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