Execution of onshore bid round exploration licences

Touchstone Exploration release

CALGARY, ALBERTA (July 2, 2024) - Touchstone Exploration Inc. ("Touchstone", "we", "our" or the "Company") (TSX, LSE: TXP) announces that Primera Oil and Gas Limited ("POGL"), our wholly owned Trinidadian subsidiary, has entered into Exploration and Production (Public Petroleum Rights) Licences for the Cipero and Charuma blocks (collectively, the "Licences") effective July 1, 2024.

The Cipero and Charuma blocks were awarded to POGL pursuant to the Trinidad and Tobago 2022 Onshore and Nearshore Competitive Bid Round. The Licences were fully 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").

POGL has an 80 percent operating working interest under each Licence, with NGC holding the remaining 20 percent working interest. Similar to the Company's Ortoire licence, the Licences initially have a six-year term and may be extended by an additional 19 years for areas that have a MEEI approved commercial discovery.

Summary of Licences 

Block	Cipero	Charuma
Gross acreage	29,924	72,784
POGL operating working interest	80 percent	80 percent
NGC working interest	20 percent	20 percent
Minimum work commitments:(1)
Geological studies	Conduct five studies	Conduct five studies
Reprocess 2D seismic	426 kilometres	784 kilometres
Reprocess 3D seismic	n/a	61 square kilometres
Exploration drilling	Four wells	One well
Financial obligations over the six-year initial licence term(1)(2)	US$2.2 million	US$4.8 million
Notes: (1)    Gross reserves are the Company's working interest share before deduction of royalties. (2)    Reserve additions exclude period production. See "Advisories: Oil and Gas Metrics". (3)    Based on the three Consultants' average December 31, 2022 forecast prices and costs. See "Forecast prices and costs".

 

Notes:

(1)   POGL is responsible for 100 percent of the exploration minimum work commitments and financial obligations over the initial six-year exploration term of the relevant licence.

(2)   Financial obligations are amounts payable pursuant to the applicable license, which include bonuses, lease payments and surface rental costs.