# Touchstone announce a C$5 million increase in term credit facility

- Link: https://www.directorstalkinterviews.com/touchstone-announce-a-c5-million-increase-in-term-credit-facility/412796938
- Published: 2019-11-01T09:31:11+00:00
- Author: Amilia Stone

**[Touchstone Exploration](https://www.directorstalkinterviews.com/company/touchstone-exploration-inc/txp.l)**(
[LON:TXP](https://www.directorstalkinterviews.com/company/touchstone-exploration-inc/txp.l))
has announced a C$5 million increase of its term credit facility to an aggregate
of C$20 million, which the Company will use to fund the drilling of the second exploration
well on its Ortoire concession and for general working capital purposes.

The terms of the October 31, 2019 amended term credit agreement are materially unchanged
from the term credit facility established in November 2016 and amended in June 2018
and April 2019. The Amended Term Credit Facility continues to bear a fixed interest
rate of 8% per annum, compounded and payable quarterly, with no mandatory principal
payments until January 1, 2021. Touchstone is now required to repay C$1,100,000 
per quarter commencing on January 1, 2021 through October 1, 2023, and the then 
outstanding principal balance is repayable on the November 23, 2023 maturity date.
As consideration for the Amended Term Credit Facility, the Company paid the lender
a commitment fee of C$100,000.

In connection with the Amended Term Credit Facility, the Company amended its related
Production Payment Agreement with the lender. The Company’s amended future production
obligations increased from 1% of petroleum sales to 1.33% of petroleum sales, payable
quarterly through October 31, 2023. Touchstone continues to have the ability to 
prepay the credit facility principal balance and has the option to negotiate a buyout
of future production obligations with the lender if the credit facility principal
balance is prepaid in full.

The expanded facility will primarily be used to fund the Company’s Cascadura-1 exploration
well, which is currently drilling and is anticipated to reach total depth in mid-
November. In addition, Touchstone has moved in a service rig to Coho-1 to commence
production testing. Test results are expected to be available in mid-November.

**About Touchstone**

Touchstone Exploration Inc. is a Calgary based company engaged in the business of
acquiring interests in petroleum and natural gas rights and the exploration, development,
production and sale of petroleum and natural gas. Touchstone is currently active
in onshore properties located in the Republic of Trinidad and Tobago. The Company’s
common shares are traded on the Toronto Stock Exchange and the AIM market of the
London Stock Exchange under the symbol “TXP”.

Share on: