Page 13 - LatAmOil Week 49 2022

LatAmOil NEWS IN BRIEF LatAmOil

date. With Coho having recently been brought In the event of excess demand, the Company
INVESTMENT onto production and facility construction at reserves the right to increase the size of the UK
Cascadura underway, we are making substantial Placing and/or the Placing Price.
Touchstone Exploration progress towards becoming an energy produc- Background to the Fundraise and Use of
tion company of significant scale, with a range Proceeds: In recent years, the Company has
raises approximately $13mn of additional exploration prospects. The Fund- been focusing on its successful exploration and
raise allows us to accelerate certain aspects of development programme on the Ortoire block,
in connection with UK and our exploration and development strategy while onshore in the Republic of Trinidad and Tobago
we focus resources on bringing Cascadura onto (Touchstone 80% working interest), which has
Canadian fundraising production. I look forward to updating share- identified significant natural gas discoveries at
the Coho and Cascadura projects and an oil dis-
holders on our progress.”
Touchstone Exploration has announced that, Touchstone Exploration, December 6 2022 covery at Royston.
further to the Company’s announcements dated Touchstone recently completed the devel-
December 5, 2022, and December 6, 2022, Touchstone Exploration opment of its facility at Coho and announced
regarding the private placement in Canada and initial natural gas production on October 10,
the proposed placing in the UK, Touchstone announces Canadian 2022, with the Coho-1 well delivering average
has raised aggregate gross proceeds of approx- net natural gas sales of 7.3 mcf per day (approx-
imately $13mn (approximately GBP11mn and private placement, imately 1,212 boepd) over 19 operational days
CAD18mn) through the placing of a total of in October.
19,924,400 new Company common shares of proposed UK placing to On August 16, 2022, the Company received
no par value, at a price of GBP0.54 pence per a Certificate of Environmental Clearance (CEC)
Fundraise Share (CAD0.90 per Fundraise Share accelerate work at Ortoire to conduct development operations within the
in respect of the Canadian Private Placement). Cascadura area of the Ortoire block from the
Of the aggregate common shares to be issued Touchstone Exploration has launched a pri- Trinidad and Tobago Environmental Manage-
pursuant to the Fundraise, the Company has vate placement in Canada to raise a minimum ment Authority. The CEC approved the con-
placed 8,704,400 new common shares with of CAD7.5mn (approximately $5.5mn and struction of a multi-well surface production
investors in Canada at the Placing Price, rais- GBP4.5mn) up to a maximum of CAD10mn facility with a designed production capacity
ing gross proceeds of approximately $5.8mn (approximately $7.4mn and GBP6.1mn) at a of 200 mcf per day of natural gas, 5,000 bpd
(approximately GBP4.8mn and CAD7.8mn), price of CAD0.90 (approximately GBP0.545) of associated liquids and 200 bpd of produced
and 11,220,000 new common shares with insti- per Common Share of no par value. water, with a storage capacity of 8,800 barrels of
tutional investors in the United Kingdom, at the The Company further announces a proposed liquids on the Cascadura A wellsite. In addition
Placing Price, raising gross proceeds of approx- placing in the UK to raise approximately $5.5mn to the facility, the CEC includes the drilling of
imately $7.5mn (approximately GBP6.1mn and (approximately GBP4.5mn and CAD7.4mn) up to eight wells on two additional well pads
CAD10.1mn). through the issue of Common Shares of no par (Cascadura B and C) and the establishment of
Shore Capital and Corporate and Shore Cap- value with institutional and other investors in associated pipelines and infrastructure within
ital Stockbrokers and Canaccord Genuity acted the UK at a price of GBP0.545 per UK Placing the Ortoire block.
as Joint Bookrunners in connection with the UK Share (approximately CAD0.90). Construction of the Cascadura surface facil-
Placing. The Canadian Private Placement and the ity and associated infrastructure required to
Paul R. Baay, President and CEO, com- UK Placing are expected to raise aggregate bring production online from the two existing
mented: “I am pleased to confirm the comple- gross proceeds of between $11mn (approxi- Cascadura wells is in progress.
tion of our fundraising, with strong support mately GBP9mn and CAD14.9mn) and $13mn Once production at Cascadura is online,
from both existing and new shareholders. The (approximately GBP10.6mn and CAD17.5mn) which the Company anticipates will be by the
Fundraise allows us to accelerate our exploration to allow Touchstone to accelerate its Ortoire end of the first quarter of 2023, initial gross
and development programme on the Ortoire exploration and development programme in aggregate natural gas and associated liquids pro-
block, which has yielded excellent results to Trinidad. duction from the Cascadura-1ST1 and Casca-
dura Deep-1 wells, based on previous well tests,
has been forecasted at approximately 11,500
boepd (9,200 boepd net).
In addition to the development of the Cas-
cadura facility, the Company has a portfolio of
further exploration and development drilling
targets at the Ortoire block. In order to allow
the Company to continue to accelerate these
prospective exploration, development and pro-
duction opportunities while the Company’s
cash balance and cash flows from operations are
being allocated towards the Cascadura facility
construction, Touchstone is seeking to com-
plete the Canadian Private Placement and the
UK Placing in order to side track Royston-1ST1
to drill and test the intermediate and subthrust
sheets of the Herrera Formation.

Week 49 07•December•2022 www. NEWSBASE .com P13