Touchstone Exploration has announced it will acquire Shell’s 65% stake in the Central block offshore Trinidad & Tobago for $23 million, providing the Calgary-based operator with increased access to natural gas resources in the region. The transaction, which is pending regulatory approval, is expected to be completed by the second quarter of 2025. Touchstone is collaborating with Republic Bank Ltd of Trinidad to finance the acquisition.
Shell currently holds a majority interest in the Central block exploration and production licence, along with a gas processing plant, with the remaining 35% owned by Heritage Petroleum Company. The acquisition includes four wells in key natural gas pools, such as Carapal Ridge, Baraka, and Baraka East. Touchstone has already identified potential locations for additional wells and sees further opportunities in a deeper Cretaceous prospect in the block.
The assets are expected to boost Touchstone’s production by approximately 2,000 barrels of oil equivalent per day (boepd), with the vast majority of this being natural gas. Currently, the gross production from these assets stands at around 3,200 boepd, which includes 18 million cubic feet of natural gas and 200 barrels of natural gas liquids per day.
The Central block is situated close to Touchstone’s existing Ortoire block, and the company also processes gas from its Coho field in the area. Touchstone sees significant potential for optimisation of the infrastructure, infill drilling, and further exploration in the block. CEO Paul Baay highlighted that the acquisition aligns strategically with Touchstone’s current assets and offers access to global LNG prices. The company plans to explore infill development drilling and production increases at the site during 2025 to further boost its LNG sales.
This acquisition represents a significant expansion of Touchstone’s operations in Trinidad & Tobago, enhancing its resource base and positioning the company for future growth in the natural gas sector.
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.
