Touchstone Exploration Inc. has entered an agreement to purchase onshore producing assets from Trinity Exploration and Production Plc for $20.8 million prior to adjustments, according to a news release.
As part of the agreement, Touchstone will acquire a 100% working interest in five blocks located in the Southern Basin of the republic of Trinidad and Tobago. The blocks—Fyzabad-2, WD-2, WD-5/6, WD-13 and WD-14—have an estimated average field production of about 1,490 barrels of oil per day, the release said.
Three of the blocks adjoin Touchstone’s Fyzabad Block, while the remaining two are contiguous with Touchstone’s WD-4 Block. The company said the acquisition will add three years of development drilling inventory to its portfolio.
Touchstone plans to fund the acquisition through cash on hand and its existing bank facility. In addition, Touchstone is negotiating terms of the expansion of its bank facility and, depending on the outcome of those discussions, will complete the funding of the acquisition with additional debt and/or equity. FirstEnergy Capital Corp. acted as Touchstone's financial advisor.
In conjunction with the signing of the agreement, Touchstone has paid a $2.08 million deposit to Trinity which is not refundable if the acquisition fails to close due to a breach of the agreement by Touchstone, according to the release. The acquisition is conditional upon the approval of Trinity shareholders and is subject to regulatory approvals and the satisfaction of closing conditions.
The acquisition is expected to close by January 2016 and will be effective as at the completion date, the release said.
Recommended Reading
Defeating the ‘Four Horseman’ of Flow Assurance
2024-04-18 - Service companies combine processes and techniques to mitigate the impact of paraffin, asphaltenes, hydrates and scale on production — and keep the cash flowing.
Tech Trends: AI Increasing Data Center Demand for Energy
2024-04-16 - In this month’s Tech Trends, new technologies equipped with artificial intelligence take the forefront, as they assist with safety and seismic fault detection. Also, independent contractor Stena Drilling begins upgrades for their Evolution drillship.
Lift-off: How AI is Boosting Field and Employee Productivity
2024-04-12 - From data extraction to well optimization, the oil and gas industry embraces AI.
AI Poised to Break Out of its Oilfield Niche
2024-04-11 - At the AI in Oil & Gas Conference in Houston, experts talked up the benefits artificial intelligence can provide to the downstream, midstream and upstream sectors, while assuring the audience humans will still run the show.