Trinidad & Tobago’s natural gas sector presents a rare opportunity for energy investors. With world-class infrastructure, a business-friendly regulatory environment, and substantial untapped reserves, the country is positioned as a strategic player in the global energy landscape. Touchstone Exploration, the largest onshore oil and gas producer in Trinidad, is seizing this opportunity with a development strategy that balances low-risk drilling with high-reward exploration.
Natural gas development in Trinidad relies on a three-pronged approach: securing prime land positions in proven hydrocarbon regions, controlling key processing infrastructure, and executing a disciplined drilling programme. This strategy enables companies to unlock reserves efficiently while capitalising on strong initial production rates and predictable long-term output. The result is rapid capital payback and compelling returns for investors.
Touchstone Exploration is leading this charge, leveraging its deep local knowledge and technical expertise to transform Trinidad’s onshore gas sector. The recent acquisition of Shell’s onshore processing facility is a game-changer, providing direct access to high-value LNG markets where gas sells for $12-$14 per MCF—substantially higher than domestic rates of $2.50 per MCF. By securing this strategic infrastructure, Touchstone is poised to unlock significant revenue potential while maintaining control over processing and market access.
Trinidad’s energy sector benefits from a rich history of hydrocarbon production, dating back to 1908. Today, it boasts sophisticated LNG export facilities, an extensive pipeline network, and a robust petrochemical industry. The country’s onshore sector remains underexplored compared to offshore developments, creating a lucrative niche for agile companies like Touchstone that can apply modern exploration techniques to legacy fields.
Touchstone’s land strategy focuses on consolidating acreage in key hydrocarbon fairways. The company has secured extensive seismic data, allowing it to refine drilling targets and optimise resource extraction. This methodical approach enables Touchstone to build a strong drilling inventory, balancing near-term production with long-term exploration upside.
The company’s drilling strategy is designed for efficiency and profitability. Trinidad’s gas wells typically produce high initial flow rates before stabilising into steady, long-term output. With a rapid capital recovery—often within five to six months—Touchstone minimises financial risk while maximising returns. The predictable nature of these wells ensures stable production, providing a foundation for sustained cash flow growth.
Market dynamics further strengthen Touchstone’s investment case. Trinidad faces a significant domestic gas supply shortfall, with demand far exceeding current production. This ensures that every molecule of gas produced is sold. Additionally, regulatory changes have opened up access to the LNG export market, allowing independent producers to benefit from premium global pricing. This shift positions Touchstone to capitalise on higher margins while maintaining stable domestic sales.
Beyond immediate production growth, Touchstone is exploring deeper hydrocarbon formations that could unlock substantial additional reserves. The largely untested Cretaceous play has the potential to mirror the major offshore discoveries in neighbouring Guyana. If successful, this could represent a transformational opportunity, significantly expanding Touchstone’s resource base.
For investors, Touchstone offers a compelling combination of stable cash flow, infrastructure control, premium pricing access, and exploration upside. The company’s disciplined capital allocation ensures a self-funded growth model, reducing debt exposure while maintaining operational flexibility. With an ambitious target of 7,000 BOE/day in 2025 and a clear path to further expansion, Touchstone is well-positioned to deliver significant shareholder value in the years ahead.
Touchstone Exploration is transforming Trinidad’s onshore energy sector by combining technical expertise with strategic asset control. With a strong production base, premium LNG pricing opportunities, and untapped exploration potential, the company presents a rare opportunity for investors seeking high-growth exposure to natural gas markets.
