Primera Oil and Gas Limited, a subsidiary of Touchstone Exploration Inc., has officially initiated activities under the Rio Claro licence as of 5 November. This six-year licence involves a financial commitment of $2.4 million, encompassing geological studies, 3D seismic processing, and the drilling of three exploration wells. Primera holds an 80% operating interest in the licence, while the remaining 20% is owned by a subsidiary of the National Gas Company of Trinidad and Tobago (NGC). Despite the shared ownership, Primera is solely responsible for fulfilling all financial and work commitments during the initial period. The licence also allows for a potential extension of up to 19 years in cases where commercially viable discoveries are approved by the Ministry of Energy and Energy Industries.
The Rio Claro licence area neighbours Touchstone’s Ortoire Block and includes land surrounding the Balata East field, expanding Touchstone’s exploration focus within the resource-rich Herrera Formation. Proprietary seismic data has identified several promising geological features within the Herrera Formation that extend from the Ortoire Block into Rio Claro. Notably, the Cascadura-3ST1 discovery appears to overlap the Rio Claro acreage, and seismic interpretations indicate that other key anomalies, such as Royston and Kraken, also extend into the newly licensed area.
Touchstone believes that future discoveries of natural gas or liquid hydrocarbons within the Rio Claro acreage could be efficiently integrated into existing production systems at Ortoire and Balata East. However, resources discovered in Rio Claro will be marketed under a separate agreement, distinct from the terms of the Ortoire contract.
Paul Baay, President and CEO of Touchstone, noted that the issuance of the Rio Claro licence aligns with the start of production at the Cascadura C well pad. He highlighted plans to drill the first commitment well from the Cascadura pad C, targeting a location within the new Rio Claro licence, pending regulatory approvals.
the Rio Claro licence presents a significant opportunity for Touchstone and Primera to expand their exploration and production activities while leveraging existing infrastructure for future growth.
Touchstone Exploration Inc (LON:TXP) is a Canadian-based, international upstream oil and gas company currently active in the Republic of Trinidad and Tobago. Primera Oil and Gas is the Trinidadian subsidiary of Touchstone.
