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Highlights

  • Touchstone Exploration extends deadline for acquisition of Shell Trinidad Central Block to May 2025
  • Company progresses with financing and regulatory approvals for the acquisition
  • The acquisition includes a 65% interest in onshore gas production assets in Trinidad

Touchstone Exploration Inc. (TSX: TXP) (LSE: TXP) has provided an update on its previously announced transaction to acquire Shell Trinidad Central Block Limited (STCBL). The company signed a Share Purchase Agreement (SPA) on December 12, 2024, to acquire 100% of STCBL from a third-party seller. STCBL holds a 65% operating working interest in the onshore Central Block exploration and production license in Trinidad, along with four producing gas wells and a gas processing plant. The remaining 35% interest in the project is held by the state-owned Heritage Petroleum Company Limited.

Under the terms of the agreement, Touchstone will pay $23 million in cash, along with closing cash and abandonment fund balances. The transaction is expected to be effective as of January 1, 2025. However, the parties involved have amended the agreement to extend the long-stop date to May 12, 2025. This extension allows both parties additional time to meet the necessary conditions precedent for the deal.

Touchstone has made notable progress with its current lender in securing the necessary financing for the acquisition and has already received all required regulatory approvals. The company expects the transaction to close in the second quarter of 2025, assuming the remaining conditions are satisfied.

While the company is unable to provide further details due to confidentiality terms in the agreement, it has stated that no assurances can be made regarding the ultimate completion of the acquisition.