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Trinidad: Touchstone

announces significant
Cascadura independent

reserves valuation

Touchstone Exploration has announced high-
lights of its independent reserves evaluation of
the Cascadura Assessment Area prepared by
GLJ Ltd with an effective date of June 30, 2020.
Highlights of the total proved (1P), total proved
plus probable (2P) and total proved plus proba-
ble plus possible (3P) reserves from the Casca-
dura Reserves Report are provided below.
The Cascadura Assessment Area is located boepd in the 3P forecast, 15,108 boepd in the 2P has announced that pursuant to the Well Partic-
in the Company’s Ortoire exploration block, forecast, and 10,266 boepd in the 1P forecast. ipation Agreement (WPA) dated November 17,
onshore in the Republic of Trinidad and Tobago Estimated before tax 3P 10% discounted net 2017, as amended by Supplemental Agreement
(Touchstone 80% working interest operator, present value of future net revenues (NPV10) No.1 dated May 31, 2018, Supplemental Agree-
Heritage Petroleum Company Limited 20% of $802.9mn, 2P NPV10 of $519.2mn, and 1P ment No.2 dated January 21, 2019, and Supple-
working interest). The Cascadura Assessment NPV10 of $287.7mn. mental Agreement No.3 dated September 26,
Area represents the geologically and geophys- Net future development costs associated with 2019, between FRAM Exploration (Trinidad)
ically defined reservoirs which were evaluated the development of the Cascadura Assessment and Predator Oil & Gas Trinidad (POGT),
by the Company’s Cascadura-1ST1 exploration Area is estimated at $11.6mn for 1P reserves and POGT served written notice on July 14, 2020 of
well drilled in the fourth quarter of 2019 and $15.8mn for both 2P and 3P reserves. its intent to exercise its option under Recital B of
tested in the first half of 2020. James Shipka, Chief Operating Officer, com- the WPA to make an offer to enter into a Share
Paul R. Baay, President and Chief Executive mented: “GLJ’s independent evaluation of the Purchase Agreement to acquire the entire out-
Officer, commented: “We are delighted to report Cascadura-1ST1 production test results and the standing issued share capital of FRAM assum-
that the independent reserves report verifies the subsequent reserves evaluation of the Casca- ing zero net debt at the time of Completion, and
material size of the reserves yet to be produced dura Assessment Area confirms the tremendous Subject to Contract, technical, legal and com-
in the Cascadura structure and provides the potential of the Ortoire exploration block. The mercial due diligence.
groundwork for a multi-year future onshore Cascadura Reserves Report combines both the Conditions Precedent, Cash Consideration
development programme in Trinidad. Through pressure and flow testing of the Cascadura-1ST1 and Terms and Conditions were commercially
the excellent work of the Touchstone team in well with the 3D seismic data which covers the sensitive at the time but can now be summarised
the drilling of our first two exploration wells, we entirety of the Cascadura structure as we now below. Conditions Precedent: the receipt of writ-
have successfully proven up the hydrocarbon understand it. ten consent prior to Completion from the Minis-
bearing turbidite model in Ortoire. This model “The team is currently working hard to try of Energy and Energy Industries (MEEI) and
will be further evaluated by our next two explo- design the facilities and infrastructure required Heritage Petroleum Company for the proposed
ration targets at Chinook and Cascadura deep, to bring the Cascadura gas and liquids to market Change of Control of FRAM; the receipt prior to
with drilling at Chinook on track to commence as quickly as possible, and with GLJ estimating Completion from FRAM of a mutually agreed
within the next few weeks. there is in excess of 500 bcf of discovered natural Working Capital Statement Columbus Energy
“We could not have envisioned a better start gas in place in the Cascadura area, it is evident Resources, FRAM’s parent company, to provide
from the first two wells of the Ortoire explora- that we have a clear pathway to a multi-year a written, legally binding, warranty to POGT
tion programme, and we look forward to updat- development programme.” prior to Completion that there are no outstand-
ing the market and our Trinidad stakeholders as Touchstone Exploration, July 20 2020 ing claims against Columbus of whatsoever
we progress with our Ortoire exploration and nature as a consequence of which a lien on the
development activities in the coming months.” assets of FRAM might arise.
Gross Discovered Petroleum Initial- INVESTMENT Cash Consideration: The Offer comprised a
ly-in-Place (DPIIP) is estimated to be between cash consideration of $1.75mn exclusive of VAT,
571.5 bcf of natural gas in the High Estimate and Predator Oil and Gas where applicable.
241.2 bcf in the Low Estimate, with a Best Esti- Terms and Conditions: The Offer was valid
mate of 398.5 bcf. announces offer to acquire for five (5) business days from July 14, 2020,
Company working interest 3P reserves of expiring at 5:00 p.m. UK GMT on Tuesday, July
73.190mn boe (85% recovery of High Esti- FRAM Exploration (Trinidad) 21, 2020. The Offer was conditional on, among
mate DPIIP), 2P reserves of 45.030mn boe other matters, a Working Capital Adjustment to
(75% recovery of Best Estimate DPIIP), and 1P Predator Oil & Gas Holdings PRD, the Jer- be mutually agreed at Completion
reserves of 23.622mn boe (65% recovery of the sey-based Oil and Gas Company with opera- Offer Deadline Expired: The validity of the
Low Estimate DPIIP). tions focused on developing carbon-neutral Offer expired at 5:00 p.m. UK GMT on Tuesday,
Net peak production is estimated to be 22,600 businesses in Trinidad, Morocco, and Ireland, July 21, 2020.

Week 29 23•July•2020 www. NEWSBASE .com P17