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
| 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:
- 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 Officer | Tel: +1 (403) 750-4487 |
| Shore Capital (Nominated Advisor and Joint Broker) Daniel Bush / Toby Gibbs / Tom Knibbs | Tel: +44 (0) 207 408 4090 |
| Canaccord Genuity (Joint Broker) Adam James / Ana Ercegovic | Tel: +44 (0) 207 523 8000 |
| FTI Consulting (Financial PR) Nick Hennis / Ben Brewerton | Tel: +44 (0) 203 727 1000 Email: touchstone@fticonsulting.com |
Advisory Regarding Forward-Looking Statements
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