CALGARY, ALBERTA–(Marketwired – Sept. 23, 2013) –
NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA
TOUCHSTONE EXPLORATION INC. (“Touchstone” or the “Company”) (TSX VENTURE:TAB) is pleased to announce that the Government of Trinidad and Tobago approved their 2014 Budget. Included within this Budget are changes to the tax legislation for oil and gas companies operating in the country. The Minister of Finance and the Economy presented the 2014 Budget Statement to parliament on September 9th, 2013 which will come into effect January 1st, 2014.
These material changes will have a significant improvement for Touchstone’s underlying cash flows thereby improving future netbacks.
The key changes to the fiscal regime currently affecting Touchstone are as follows:
|Current||Revised (effective January 2014)|
|Investment tax credit||• Tax credit of 20% on capital expenditures
• Tax credit can only be used in the year incurred
• Unused credits can be rolled forward for one year
|• Initial allowance of 10%
• Annual allowance 20% reducing balance
|• 100% of cost to be written off in year incurred|
|• Intangible expenditures||• Intangible and tangible expenditures|
|• Initial allowance 10%|
|• Annual allowance 20% reducing balance|
|• Tangible expenditures||• 50% year 1|
|• Initial allowance 20%||• 30% year 2|
|• Annual allowance 20% straight line||• 20% year 3|
|Workovers & Qualifying Sidetracks|
|• Deduction of intangible costs incurred||• 100% deduction of all costs incurred|
Touchstone, through its operating subsidiaries in Trinidad, will greatly benefit from these significant changes as it continues to be very active on both the drilling and recompletion aspects of its capital program. The Company will directly reinvest the additional funds generated by the tax savings to accelerate the capital program in 2014-2015.
Mr. Scott Budau, CFO of Touchstone said, “These changes are making Trinidad much more competitive from a capital markets prospective and we anticipate it will fuel additional activity in the country for both ourselves and others companies.”
Touchstone Exploration Inc. is 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 internationally. The Company is currently active in onshore properties located in the Republic of Trinidad and Tobago. The Company’s common shares are traded on the TSX Venture Exchange under the symbol “TAB”. Please see the latest corporate presentation on the Touchstone Exploration Inc.’s website at www.touchstoneexploration.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Mr. Paul R. Baay
Chairman & Chief Executive Officer
Touchstone Exploration Inc.
Mr. Scott Budau
Chief Financial Officer
Macam Investor Relations
President & Chief Executive Officer