Touchstone Exploration has taken a bold step forward with its $28.4 million acquisition of Shell’s Central Block assets in Trinidad, setting the stage for expanded natural gas production and direct access to the global LNG market. This move strengthens its position in one of the Caribbean’s most promising energy corridors and aligns with a broader strategy of leveraging infrastructure and reserves for scalable, long-term growth.
The acquisition, completed on 15 May 2025, gives Touchstone a 65% operating interest in the Central Block, a 6,699-acre onshore licence featuring four producing natural gas wells and a gas processing facility. The remaining 35% stake remains with Trinidad’s state-owned Heritage Petroleum. For Touchstone, the Central Block isn’t just another licence, it’s a strategic complement to its existing operations in the Ortoire block, where its Coho and Cascadura fields have already begun redefining the company’s production profile.
Production from the Central Block is currently averaging around 18 million cubic feet per day of natural gas and 200 barrels per day of natural gas liquids. This translates to a robust 3,200 barrels of oil equivalent per day, immediately boosting Touchstone’s output and laying a solid foundation for cash flow expansion. More critically, the asset comes with existing infrastructure and contractual ties to the LNG market, including agreements with Atlantic LNG, providing near-term monetisation pathways with premium pricing exposure.
Touchstone’s acquisition strategy is underpinned by a newly secured $30 million, six-year non-revolving term loan. This facility, which includes restructured financial covenants and an extension to its revolving credit line, ensures the company is well-capitalised not only for the purchase but for continued investment in developing the asset. Drawing the full amount under this term loan offers operational and financial clarity for investors watching Touchstone’s next phase of growth.
What makes this acquisition particularly strategic is its synergy with Touchstone’s existing operations. The Central Block’s proximity to current assets allows for operational integration, shared processing capacity, and improved efficiency. It strengthens the company’s foothold in the Herrera fairway, a region with proven hydrocarbon potential and supportive regulatory conditions. This is more than a portfolio expansion—it’s a consolidation of high-value opportunities in a tightly focused geography.
CEO Paul Baay described the transaction as a transformative moment for Touchstone, one that widens its production base, diversifies its market exposure, and accelerates access to international LNG revenues. It signals the company’s intent to play a larger role in Trinidad’s energy evolution, all while offering investors a clearer line of sight to scalable, resilient returns.
Touchstone Exploration Inc (LON:TXP) is a Canadian-based, international upstream oil and gas company currently active in the Republic of Trinidad and Tobago. Primera Oil and Gas is the Trinidadian subsidiary of Touchstone.
