Touchstone Exploration, through its subsidiary POGL, has obtained an exploration and production licence for the Rio Claro block in Trinidad and Tobago. This agreement, completed with the Government of Trinidad and Tobago, the Ministry of Energy and Energy Industries (MEEI), and a subsidiary of the National Gas Company (NGC), grants POGL an 80% working interest in the Rio Claro Licence, with NGC retaining the remaining 20%.
Under the terms, the Rio Claro Licence includes an initial six-year exploration period, which could be extended by 19 years if commercial discoveries are sanctioned by the MEEI. Positioned strategically next to Touchstone’s Ortoire block, Rio Claro strengthens the company’s focus on exploration and development within the Herrera Formation area. This block also includes the recently acquired Balata East field and is considered highly promising. Proprietary seismic data highlights several significant Herrera Formation anomalies that appear to extend from Ortoire into Rio Claro, including Cascadura-3ST1, a notable discovery in the Ortoire block believed to cross into Rio Claro, presenting additional resource potential.
Seismic analysis has also shown that both the Royston anomaly in the Herrera Formation and the Kraken anomaly in the Cretaceous Formation span into the Rio Claro Licence area. With existing sales infrastructure in place at Ortoire and Balata East, new discoveries within Rio Claro could be brought to market swiftly.
Earlier in 2023, POGL entered an asset exchange agreement with a Trinidadian entity, involving certain onshore assets. This agreement, initially modified due to regulatory delays, saw its first phase completed on 1 June 2024, with POGL’s San Francique field traded for the Balata East block. Finalising the Rio Claro Licence with the MEEI wraps up this transaction, and Touchstone will no longer proceed with a second asset exchange that expired on 31 August 2024.
Touchstone’s acquisition of the Rio Claro block strengthens its exploration portfolio, potentially expanding its resource base within Trinidad and Tobago’s promising formations, while setting up swift production pathways for future discoveries.
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.
