Touchstone Exploration has provided an update regarding the previously announced transaction to acquire the entire share capital of Shell Trinidad Central Block Limited ('STCBL').
As previously announced, on December 12, 2024, the Company's wholly owned Trinidadian subsidiary signed a Share Purchase Agreement to acquire 100 percent of STCBL from a third party. STCBL holds a 65 percent operating working interest in the onshore Central block exploration and production licence, as well as four producing gas wells and a gas processing plant in Trinidad, with state owned Heritage Petroleum Company holding the remaining 35 percent working interest. Under the terms of the Agreement, Touchstone will pay $23 million in cash plus closing cash and abandonment fund balances, and the Acquisition will be deemed effective as of January 1, 2025.
The parties have amended the Agreement to extend the long-stop date to May 12, 2025. Under the Agreement, the parties have until this date to satisfy or waive the conditions precedent, as applicable. Completion will occur on a mutually agreed date following the satisfaction of all conditions, which the Company expects to take place in the second quarter of 2025. All customary regulatory approvals have been received, and Touchstone has made significant progress with its current lender regarding the financing of the Acquisition.
For further information regarding the Acquisition and related advisories thereto, refer to the Company's announcement dated December 13, 2024 entitled 'Touchstone Exploration Announces the Acquisition of Central Block ' .
No assurances can be given that the Acquisition will ultimately be completed. Due to confidentiality terms in the agreement, Touchstone is not able to provide further information to the market on this Acquisition until the transaction is effectively closed, or terminated, as the case may be.
Source: Touchstone
