Calgary-based Touchstone Exploration Inc. is buying the entire shares of Trinidad and Tobago-focused Trinity Exploration and Manufacturing Plc.
Trinity is a crude oil exploration, improvement and manufacturing firm with onshore and offshore property positioned solely within the Republic of Trinidad and Tobago.
Underneath the phrases of the acquisition, Trinity shareholders will obtain 1.5 widespread shares of Touchstone for every Trinity widespread share held. Based mostly upon the closing Touchstone share value as of April 30, 2024, the acquisition represents an implied worth for Trinity of roughly $30.1 million, Touchstone stated in a information launch.
Roughly 24.91 % of the at the moment excellent Touchstone Shares will probably be issued pursuant to the acquisition, in response to the discharge. The completion is topic to customary regulatory, inventory change and Trinity shareholder approvals and is predicted to shut by the top of the third quarter.
After the acquisition is accomplished, present Touchstone shareholders will personal roughly 80 % of the post-acquisition Touchstone shares, and Trinity shareholders will personal roughly 20 % of the post-acquisition Touchstone shares.
The Trinity property are a “pure extension of Touchstone’s property in Trinidad,” Touchstone stated. The addition of Trinity’s present manufacturing portfolio, together with its exploration and improvement property, will place Touchstone as a key participant within the Trinidad oil and gasoline sector, and “one of many main impartial working firms devoted to investing in each onshore and offshore exercise to develop Trinidadian oil and pure gasoline manufacturing,” it added.
On a pro-forma foundation, the acquisition is predicted to create a producing portfolio between roughly 11,700 and 12,400 barrels of oil equal per day with mixed estimated proved plus possible reserves of roughly 80.3 million barrels of oil equal as of December 31, 2023.
Touchstone President and CEO Paul Baay stated, “We imagine this acquisition represents a compelling strategic alternative which can ship enhanced scale, stability sheet power, and development alternatives. The enterprise mixture will create an upstream oil and pure gasoline firm of elevated scale in Trinidad, enhancing our skill to ship development in reserves, manufacturing and money flows for the advantage of our mixed shareholders and native stakeholders”.
“The mixed group will have the ability to spend money on a number of improvement packages and speed up the expansion potential of the enlarged asset base, thereby giving us the potential to materially improve long-term worth,” Baay added.
Trinity is an impartial oil exploration, improvement and manufacturing firm with producing property onshore, in addition to offshore off the east and west coasts of Trinidad. The corporate produced internet every day common crude oil gross sales volumes of two,790 barrels per day (bpd) in 2023 and a pair of,669 bpd within the first quarter.
As of December 31, 2023, Trinity’s administration estimate of its whole proved plus possible reserves was 12.91 million barrels. Trinity operates seven onshore oil blocks from which it produced 1,495 bpd in 2023, accounting for 53 % of its internet annual common crude oil manufacturing, in response to the discharge.
Trinity’s west coast property, the Level Ligoure-Guapo BayBrighton Marine and Brighton Marine licenses, are positioned offshore and produced internet crude oil volumes of 352 bpd in 2023, representing 13 % of Trinity’s annual internet manufacturing.
Touchstone famous that Trinity has been working and producing offshore from the east coast of Trinidad since 2013, and at the moment produces crude oil from three platforms within the Trintes subject which resides inside the Galeota block. The web common 2023 crude oil manufacturing from the Trintes subject was 943 bpd, representing 34 % of Trinity’s internet annual manufacturing.
To contact the creator, electronic mail rocky.teodoro@rigzone.com