CALGARY, AB, Dec. 18, 2020 /CNW/ - Touchstone Exploration Inc.
("Touchstone", "we", "our", "us" or the "Company") (TSX:
TXP) (LSE: TXP) is pleased to announce that it has executed a
long-term natural gas sales agreement with the National Gas Company
of Trinidad and Tobago Limited ("NGC") for all future natural gas
production from the Ortoire block (Touchstone 80% working interest
operator, Heritage Petroleum Company Limited 20% working
interest).
Per NGC's Media release dated December
18, 2020
NGC, Touchstone in gas supply Partnership
The National Gas Company of Trinidad and Tobago Limited (NGC)
signed a natural gas supply agreement with Primera Oil and Gas
Limited, a subsidiary of Canadian energy exploration company
Touchstone Exploration on Friday 18th December 2020. Primera, acting on behalf of its
Joint Venture partner Heritage Petroleum Company Limited, will
supply gas from the Ortoire Block, initially from the Coho-1
field.
Paul Baay CEO of Touchstone commented: "This agreement provides
a stable, multi-decade revenue stream for Touchstone to fully
develop the world-class asset at Ortoire. This transforms the
company from being an exploration company to one that is a full
cycle energy provider. The structure of the agreement provides the
shareholders of Touchstone with a predictable cash flow and
earnings stream for years to come while minimising the capital
required to maximise the resource."
Chief Executive Officer of Heritage Petroleum Arlene Chow said,
"This strategic partnership is not only promising for the industry
and the companies involved, but ultimately, it will greatly benefit
the people of Trinidad and Tobago.
"
NGC's President Mark Loquan noted that this signaled an
important milestone in the country's gas story. "NGC is unwavering
in its commitment to secure natural gas through innovation and
strategic partnerships, especially in these challenging times. This
is notable because onshore natural gas production has been for so
long overlooked in the sector."
He also congratulated the teams who worked on the agreement,
affirming that, "…in an epoch where the energy industry here and
globally rarely fields a good story, this one bodes well for
Trinidad and Tobago."
Operational Update
Touchstone has mobilized a service rig to the Chinook-1 location
to perform a comprehensive completion and production testing
program. The Company expects to perform three production tests to
evaluate reservoir pressures and hydrocarbon deliverability of the
Herrera sands observed while drilling and defined by open hole
wireline logs. The first test will evaluate the previously untested
subthrust Herrera sands, while the other tests are expected to
investigate the potential of the intermediate and overthrust
Herrera sand intervals. We anticipate final results from the
Chinnok-1 production testing program in the first quarter of
2021.
Following testing at Chinook-1, the service rig is expected to
immediately move to the Cascadura Deep-1 location. The Cascadura
Deep-1 production testing program is anticipated to include flow
and buildup testing of three zones of interest. The first two tests
plan to evaluate sands observed in two previously untested thrust
sheets in the intermediate Herrera that are below the sands
observed in the Cascadura-1ST1 well, while the third test will
assess the base of the sands which were observed but not fully
penetrated in the Cascadura-1ST1 well.
Touchstone Exploration Inc.
Touchstone Exploration Inc. is a Calgary, Alberta 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".
Advisories
Forward-Looking Statements
Certain information provided in this news release may constitute
forward-looking statements and information (collectively,
"forward-looking statements") within the meaning of applicable
securities laws. Such forward-looking statements include, without
limitation, forecasts, estimates, expectations and objectives for
future operations that are subject to assumptions, risks and
uncertainties, many of which are beyond the control of the Company.
Forward-looking statements are statements that are not historical
facts and are generally, but not always, identified by the words
"expects", "plans", "anticipates", "believes", "intends",
"estimates", "projects", "potential" and similar expressions, or
are events or conditions that "will", "would", "may", "could" or
"should" occur or be achieved.
Forward-looking statements in this news release may include, but
is not limited to, statements relating to the Company's exploration
plans and strategies, including production testing plans and timing
thereof. Although the Company believes that the expectations and
assumptions on which the forward-looking statements are based are
reasonable, undue reliance should not be placed on the
forward-looking statements because the Company can give no
assurance that they will prove to be correct. Since forward-looking
statements address future events and conditions, by their very
nature they involve inherent risks and uncertainties. Actual
results could differ materially from those currently anticipated
due to a number of factors and risks. Certain of these risks are
set out in more detail in the Company's 2019 Annual Information
Form dated March 25, 2020 which has
been filed on SEDAR and can be accessed at www.sedar.com. The
forward-looking statements contained in this news release are made
as of the date hereof, and except as may be required by applicable
securities laws, the Company assumes no obligation to update
publicly or revise any forward-looking statements made herein or
otherwise, whether as a result of new information, future events or
otherwise.
SOURCE Touchstone Exploration Inc.