TOUCHSTONE ANNOUNCES EXPANDED
BANK DEBT AND A DRILLING UPDATE
CALGARY, ALBERTA (March 4, 2024) -
Touchstone Exploration Inc. ("Touchstone",
"we", "our" or the "Company") (TSX, LSE: TXP) is pleased to
provide updates on its bank debt and drilling
operations.
Bank Debt
Touchstone's wholly owned
Trinidadian subsidiary, Touchstone Exploration (Trinidad) Ltd., has
entered into a binding term sheet with our
existing Trinidad-based lender providing for an increase in
borrowing capacity of $13 million (the "Amended Bank Loan"). The
parties are currently documenting an amended and restated bank loan
agreement and related security registrations, following which the
additional credit capacity will become effective.
The
principal changes included in the Amended Bank Loan are as
follows:
· a new
$10 million five-year non-revolving term loan facility, with no
principal repayment in the first year and sixteen equal and
consecutive quarterly payments thereafter; and
· an
increase in our current revolving loan facility borrowing capacity
from $7 million to $10 million, which will mature two years from
the execution date and may be renewed at the option of the parties
thereafter.
Following execution of the Amended
Bank Loan, Touchstone's facilities will consist of its unchanged
existing seven-year term loan facility, the new five-year $10
million term loan facility, and the increased $10 million revolving
loan facility.
The existing seven-year
non-revolving term loan facility has a
current principal balance of $21 million, with fourteen equal and consecutive quarterly principal
payments of $1.5 million outstanding through to the June 15, 2027
maturity date. We have $7 million drawn on our revolving loan
facility, resulting in an aggregate $28 million in bank debt
principal currently outstanding.
We intend to use the additional
Amended Bank Loan facility borrowing capacity to finance our 2024
capital program as presented in our December 19, 2023 news release
entitled "Touchstone Announces
2024 Capital Budget, Preliminary 2024 Guidance and an Operational
Update".
Drilling Operations
Touchstone has commenced drilling
the Cascadura-3 development well and the CO-374 development well.
Cascadura-3 was spud on March 1, 2024 from our Cascadura C surface
location on the Ortoire block in which we have an 80 percent
working interest. The well is targeting gas-charged sands in the
Herrera formation northeast of the recently drilled Cascadura-2
well and is expected to be drilled to an anticipated total depth of
7,000 feet using Star Valley Rig #205. CO-374 was spud on February
28, 2024 on our CO-1 block, in which we have a 100 percent working
interest. The well is targeting crude oil-charged sands in the
Cruse and Forest formations and is expected to be drilled to a
total depth of 6,600 feet using PCSL Rig #8.
The Cascadura-2 well has been
successfully cased after we encountered wellbore instability issues
due to high gas pressures which resulted in the need to sidetrack a
portion of the well. Operations are proceeding on the road and
pipeline right-of-way which will tie-in the Cascadura development
wells to our Cascadura natural gas facility. This project includes
the preparation of the Cascadura B surface location, which has been
approved for the drilling of up to four additional development
wells.
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". For further
information about Touchstone, please visit our website at
www.touchstoneexploration.com or
contact:
Touchstone Exploration Inc.
Paul Baay, President and Chief
Executive
Officer
Tel: +1 (403) 750-4487
Scott Budau, Chief Financial
Officer
James Shipka, Chief Operating
Officer
Shore Capital (Nominated Advisor and Joint
Broker)
Daniel Bush / Toby Gibbs / Iain
Sexton
Tel: +44 (0) 207 408 4090
Canaccord Genuity (Joint Broker)
Adam James / Ana
Ercegovic
Tel: +44 (0) 207 523 8000
FTI
Consulting (Financial PR)
Nick Hennis / Ben Brewerton
Tel: +44 (0) 203 727 1000
Email: touchstone@fticonsulting.com
Advisory Regarding Forward-Looking
Statements
The information provided in this
announcement contains certain 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 "expect", "plan", "anticipate",
"believe", "intend", "maintain", "continue to", "pursue", "design",
"result in", "sustain" "estimate", "potential", "growth",
"near-term", "long-term", "forecast", "contingent" and similar
expressions, or are events or conditions that "will", "would",
"may", "could" or "should" occur or be achieved. The
forward-looking statements contained in this announcement speak
only as of the date hereof and are expressly qualified by this
cautionary statement.
Specifically, this announcement
includes, but is not limited to, forward-looking statements
relating to: the Company's business plans, strategies, priorities
and development plans; the anticipated total depth and targeted
formations of current wells being drilled; the intended use of
proceeds and expected timing of closing the Amended Bank Loan; and
the Company's expectation that the proceeds from the Amended Bank
Loan will fully fund the Company's 2024 capital program.
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 2022 Annual
Information Form dated March 23, 2023 which is available under the
Company's profile on SEDAR+ (www.sedarplus.ca)
and on the Company's website (www.touchstoneexploration.com).
The forward-looking statements contained in this announcement are
made as of the date hereof, and except as may be required by
applicable securities laws, the Company assumes no obligation or
intent to update publicly or revise any forward-looking statements
made herein or otherwise, whether as a result of new information,
future events or otherwise.
This announcement contains inside
information for the purposes of Article 7 of the UK version of the
Market Abuse Regulation (EU) No.596/2014, which forms part of UK
law by virtue of the European Union (Withdrawal) Act
2018.
Competent Persons Statement
In
accordance with the AIM Rules for Companies, the technical
information contained in this announcement has been reviewed and
approved by James Shipka, Chief Operating Officer of Touchstone
Exploration Inc. Mr. Shipka is a qualified person as defined in the
London Stock Exchange's Guidance Note for Mining and Oil and Gas
Companies and is a Fellow of the Geological Society of London (BGS)
as well as a member of the Canadian Society of Petroleum Geologists
and the Geological Society of Trinidad and Tobago. Mr. Shipka has a
Bachelor of Science in Geology from the University of Calgary and
has over 30 years of oil and gas exploration and development
experience.