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Highlights
- Touchstone's subsidiary secures key licence, advancing exploration on the Herrera Formation
- Strategically positioned near Cascadura, opening up significant natural gas opportunities
- Rio Claro Licence enhances Touchstone’s presence in Trinidad’s high-potential oil and gas sector
Touchstone Exploration Inc. (TSX:TXP) (LSE:TXP) has announced a major milestone in its Trinidadian operations with the execution of an Exploration and Production (Public Petroleum Rights) licence for the Rio Claro block. This agreement, signed on November 4, 2024, between Touchstone’s wholly owned subsidiary, Primera Oil and Gas Limited (POGL), the Government of Trinidad and Tobago, the Ministry of Energy and Energy Industries (MEEI), and the National Gas Company of Trinidad and Tobago (NGC), strengthens the company’s position in one of the most promising exploration areas in the country.
The Rio Claro Licence, in which POGL holds an 80% operating interest and NGC retains 20%, encompasses an area that is directly adjacent to Touchstone’s Ortoire block. This strategic location allows for seamless integration of future discoveries into the company’s existing operations. Like other licences held by Touchstone, the Rio Claro Licence comes with an initial six-year exploration term, with the potential for a 19-year extension in areas where commercial discoveries are approved.
The Rio Claro Licence significantly enhances Touchstone’s footprint in Trinidad’s highly prospective Herrera Formation fairway. The licence area surrounds the recently acquired Balata East field, and proprietary seismic data has identified several promising anomalies in the Herrera Formation that extend from Touchstone's Ortoire block into the Rio Claro acreage. One of the most exciting prospects is the Cascadura-3ST1 discovery within the Ortoire block, which appears to extend into the Rio Claro Licence, providing a clear opportunity for further exploration and development.
Seismic interpretation has also revealed that the Royston anomaly in the Herrera Formation and the Kraken anomaly in the Cretaceous Formation both extend into the Rio Claro Licence area. This opens up significant upside potential for the company, as both the Royston and Kraken anomalies could hold substantial reserves of liquid hydrocarbons and natural gas.
With existing infrastructure in place at Ortoire and Balata East, any future discoveries of hydrocarbons within the Rio Claro block can be easily integrated into production systems. The proximity to the Cascadura field and its newly commissioned gas gathering system allows for efficient transportation of any discovered natural gas. Touchstone is already planning to drill the first commitment well on the Rio Claro block, originating from the Cascadura C well pad. This well will target a bottom-hole location within the Rio Claro Licence, with the potential to unlock additional natural gas resources that will be marketed under a distinct gas arrangement, separate from the existing Ortoire agreement.
Paul R. Baay, President and CEO of Touchstone, commented, “The issuance of the Rio Claro Licence marks a significant step forward for Touchstone. The integration of the Cascadura structure into the Rio Claro Licence area presents us with substantial opportunities. With our newly commissioned gathering system at Cascadura C, any potential discoveries on this block can be seamlessly integrated into production.”
The acquisition of the Rio Claro Licence is part of a broader asset exchange agreement that Touchstone entered into with a privately held Trinidadian entity in January 2023. Under this agreement, Touchstone exchanged its 100% working interests in the Fyzabad, San Francique, and Barrackpore producing blocks for the counterparty’s interests in the Rio Claro Licence, Balata East, and Balata East Deep Horizons blocks. The agreement was contingent upon securing the extension of the Rio Claro Licence, which has now been successfully completed, further boosting Touchstone’s portfolio.
The acquisition of the Rio Claro Licence positions Touchstone as a key player in Trinidad’s growing energy sector. With multiple promising prospects in the Herrera and Cretaceous formations, the company is well poised to continue its exploration and development efforts in one of the most productive oil and gas regions in the Caribbean.
As Touchstone continues to execute its strategy for growth, the Rio Claro Licence offers exciting new opportunities. The company remains focused on unlocking value from this new asset while also advancing its existing operations in Trinidad. With a solid exploration foundation, strategic partnerships, and a growing portfolio, Touchstone is set to deliver long-term value to shareholders.
