Touchstone Exploration has just made a strategic leap that could redefine its trajectory in the global energy market. By acquiring a major producing block in Trinidad, the company now holds the keys to the liquefied natural gas (LNG) value chain, opening up new revenue channels and strengthening its position in one of the most energy-rich regions of the Caribbean.
The $28.4 million acquisition secures Touchstone a 65% operating interest in the Central Block, a 6,699-acre onshore area in Trinidad. This asset is more than just land—it includes four actively producing natural gas wells, a gas processing facility, and connections to LNG export infrastructure. The block is already yielding approximately 3,200 barrels of oil equivalent per day, a robust production rate that immediately boosts Touchstone’s output and cash flow profile. The remaining 35% stake is held by Heritage Petroleum, the national oil company, creating a partnership that adds political and operational stability.
What sets this acquisition apart is not just the uplift in production—it’s the strategic access it grants to the global LNG market. With gas marketing contracts tied directly to Atlantic LNG, one of the Caribbean’s most vital LNG hubs, Touchstone is now plugged into a system that monetises gas at international prices. This pivot gives the company exposure to global energy demand growth and adds a cleaner-burning commodity to its portfolio, aligning with the energy transition movement.
The Central Block’s location also offers significant synergies with Touchstone’s existing Ortoire block. The two assets sit within the prolific Herrera fairway, an area known for its natural gas-rich sands. By integrating operations across both assets, Touchstone can optimise processing capacity, streamline infrastructure use, and reduce overall development costs. The company has now positioned itself as a dominant player in this high-potential region, with room to scale up further as drilling and exploration continue.
To finance the acquisition, Touchstone secured a $30 million six-year term loan, ensuring minimal disruption to its balance sheet. The deal structure supports immediate production while allowing the company to reinvest efficiently into development and exploration. The financial package also demonstrates lender confidence in Touchstone’s strategic direction and operational discipline.
This move is not just a tactical expansion, it’s a transformational step. By acquiring an asset with built-in production, midstream infrastructure, and LNG-linked contracts, Touchstone has created a new growth platform that could significantly lift its valuation and shareholder returns in the medium to long term.
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.
