# Touchstone’s $28.4m deal unlocks strategic gas assets in Trinidad

- Link: https://www.directorstalkinterviews.com/touchstones-28-4m-deal-unlocks-strategic-gas-assets-in-trinidad/4121197036
- Published: 2025-05-16T14:00:00+01:00
- Author: Amilia Stone

[Touchstone Exploration](https://www.directorstalkinterviews.com/company/touchstone-exploration-inc/txp.l)
has finalised a transformative acquisition in Trinidad, securing a pivotal gas-producing
asset that enhances its production capabilities and market reach.

Touchstone Exploration Inc. has successfully closed the acquisition of Shell Trinidad
Central Block Limited (STCBL) for approximately \$28.4 million. This strategic move
grants Touchstone a 65% operating interest in the Central Block, an onshore exploration
and production licence in Trinidad encompassing around 6,699 gross acres. The remaining
35% interest is held by state-owned Heritage Petroleum Company Limited.

The Central Block includes four producing natural gas wells and a gas processing
facility, contributing approximately 3,200 barrels of oil equivalent per day to 
Touchstone’s production. This acquisition not only bolsters Touchstone’s production
base but also provides access to the liquefied natural gas (LNG) market through 
existing gas marketing contracts, including two with the Atlantic LNG facility.

To finance this acquisition, Touchstone secured a new \$30 million six-year non-
revolving term loan facility. The loan agreement includes revised financial covenants
and a two-year extension of the maturity date of the existing revolving loan facility.
Touchstone intends to fully draw the \$30 million under the new term facility to
finance the acquisition and meet obligations under the amended lending arrangements.

This acquisition aligns with Touchstone’s strategy to expand its portfolio of high-
quality assets in Trinidad. The Central Block’s proximity to Touchstone’s existing
Ortoire block offers potential synergies for natural gas egress and marketing from
future discoveries. Additionally, the infrastructure associated with the Central
Block provides processing and takeaway capacity for natural gas in the Herrera fairway,
enhancing operational efficiency.

_**Touchstone Exploration Inc** ([LON:TXP](https://www.directorstalkinterviews.com/company/touchstone-exploration-inc/txp.l))
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._

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