Transaction Highlights
The Transaction contemplates swapping producing legacy crude oil fields which we consider noncore due to limited scalability in exchange for highly prospective exploration and development acreage contiguous to our Ortoire block.
Acquisition of approximately 28,000 working interest acres directly offsetting our Ortoire block, allowing us to significantly expand development prospects adjacent to our Cascadura and
The Balata East block has a liquids facility which may potentially be used as a delivery point for future liquids volumes produced at Cascadura and
The Transaction also provides Touchstone access to an 18-kilometre oil pipeline that transects our Ortoire block.
Future potential production from the Rio Claro block is not subject to our current Ortoire block natural gas sales agreement with
Transaction Details
Under the Agreement, Touchstone has agreed to swap its operated 100% working interests in the Fyzabad, San Francique and Barrackpore producing blocks for the counterparty's working interest in the Rio Claro, Balata East and Balata Deep blocks for no cash consideration with the swap becoming effective upon closing. The Agreement remains subject to certain closing conditions, including receipt of applicable regulatory approvals and an extension of the Rio Claro Exploration and Production (Public Petroleum Rights) Licence (the 'Rio Claro Licence'), and is expected to close prior to the end of 2023. The 100% working interest Balata East block is governed by an Enhanced Production Service Contract with
Contact:
Mr.
President and Chief Executive Officer
Mr.
Chief Financial Officer
Telephone: 403.750.4487
Advisory
Forward-looking Statements
Certain information provided in this news release may constitute 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 'expects', 'plans', 'anticipates', 'believes', 'intends', 'estimates', 'projects', 'potential' and similar expressions, or are events or conditions that 'will', 'would', 'may', 'could' or 'should' occur or be achieved. Forward-looking statements in this news release may include, but are not limited to, statements relating to the anticipated closing of the Transaction and the timing thereof, anticipated benefits of the Transaction, Touchstone's development and exploration plans with respect to such assets and the anticipated future receipt and timing of regulatory approvals including the required licence extension with respect to the Transaction. Although the Company believes that the expectations and assumptions on which the forwardlooking 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 forwardlooking 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 2021 Annual Information Form dated
(C) 2023 Electronic News Publishing, source