CALGARY, ALBERTA–(Marketwired – July 22, 2015) – Touchstone Exploration Inc. (“Touchstone” or the “Company”) (TSX:TXP) announces that it has disposed of its interest in the Dawson area of Alberta for cash consideration of $2,150,000. The property was a non-producing legacy asset that was originally acquired for a potential THAI® project. In October 2014 Touchstone terminated a Dawson area cyclical steam pilot program based on uneconomic operating results. With the conclusion of the steam pilot and no intent to pursue THAI® projects in the future, the Company had no immediate development plans for the property. The property was assigned proved reserves of 463,000 barrels (net) and proved plus probable reserves of 946,000 barrels (net) of heavy oil as of December 31, 2014. Associated future capital costs were $7,813,000 (proved) and $13,322,000 (proved plus probable). Following this transaction the Company has no land holdings in Alberta.
James Shipka, Chief Operating Officer, said “the Dawson property was outside the scope of Touchstone’s business model and its monetization allows us to reduce our net debt and focus future capital on our core producing properties in Trinidad.”
The Company is also pleased to announce that its borrowing base on its Trinidad based credit facility has been maintained at US$15 million. This amount will continue until the next borrowing base redetermination in October 2015.
Touchstone Exploration Inc. is a Calgary-based company engaged in the business of acquiring interests in petroleum and natural gas rights, and the exploration, development, production and sale of petroleum and natural gas. Touchstone is currently active in onshore properties located in the Republic of Trinidad and Tobago and western Canada. The Company’s common shares are traded on the Toronto Stock Exchange under the symbol “TXP”.
Touchstone Exploration Inc.
Mr. Paul Baay
President and Chief Executive Officer
(403) 750-4400
Touchstone Exploration Inc.
Mr. James Shipka
Chief Operating Officer
(403) 750-4400