Touchstone Exploration Inc. has signed an Exploration and Production License for the East Brighton Block in the Republic of Trinidad and Tobago. The License is for an initial six year term, with the option to extend a further twenty-five years upon commercial discovery. The licensed area is a contiguous block directly adjacent to the Brighton Marine field which has produced approximately 60 million barrels of oil to date. The Company holds a 24.5% non-operated working interest in the Block.
Paul Baay, President and CEO, said “East Brighton represents Touchstone’s third major oil exploration block in Trinidad and Tobago. Combined with the Cory Moruga and Ortoire Blocks, the Company has excellent potential for future growth and looks forward to sharing the benefits with the people of Trinidad and Tobago.”
Initial work commitments associated with the License renewal include conducting technical studies and revaluation of existing 3D seismic within two years of the effective date of the License, and the drilling of one 5,000 foot exploration well by the end of year three. The Company currently forecasts its share of these commitments to be approximately $3.5 million over the three year period. The commitments are expected to be funded through future cash flows.
James Shipka, Chief Operating Officer, said “the East Brighton Exploration Block is a significant exploration opportunity for the Company. With high quality 3D seismic coverage over the block and two noteworthy drilling tests on the block (PBM-1 and PBM-2), the East Brighton block has tremendous potential and complements our existing inventory of low risk development properties.”
The East Brighton Block brings Touchstone’s land holdings in Trinidad and Tobago to a total of 60,300 net working interest acres.