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Execution of Onshore Bid Round Exploration Licence

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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

BlockCiperoCharuma
Gross acreage29,92472,784
POGL operating working interest80 percent80 percent
NGC working interest20 percent20 percent
Minimum work commitments: (1)
Geological studiesConduct five studiesConduct five studies
Reprocess 2D seismic426 kilometres784 kilometres
Reprocess 3D seismicn/a61 square kilometres
Exploration drillingFour wellsOne well
Financial obligations over the six-year initial licence term (1)(2)US$2.2 millionUS$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:

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

Touchstone Exploration Inc.

Touchstone Exploration Inc. Paul Baay, President and Chief Executive Officer Scott Budau, Chief Financial OfficerTel: +1 (403) 750-4487
Shore Capital (Nominated Advisor and Joint Broker) Daniel Bush / Toby Gibbs / Tom KnibbsTel: +44 (0) 207 408 4090
Canaccord Genuity (Joint Broker) Adam James / Ana ErcegovicTel: +44 (0) 207 523 8000
FTI Consulting (Financial PR) Nick Hennis / Ben BrewertonTel: +44 (0) 203 727 1000 Email: touchstone@fticonsulting.com

Advisory Regarding Forward-Looking Statements

Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.

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