CALGARY, ALBERTA–(Marketwired – Jan. 20, 2014) – Touchstone Exploration Inc. (“Touchstone” or the “Company”) (TSX VENTURE:TAB) is pleased to announce that it has received regulatory approval for the renewal of its East Brighton offshore Exploration and Production License (“License”) in the Republic of Trinidad and Tobago. The renewed 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 of approximately 20,300 acres directly adjacent to the Brighton Marine field which has produced approximately 60 million barrels of oil to date. The property is divided into two sub-blocks, of which the Company holds a 35% non-operating working interest in Sub-Block A covering approximately 3,000 acres and a 24.5% non-operating interest in Sub-Block B covering approximately 17,300 acres. The acreage resides in the shallow coastal water along the southwest coastline of Trinidad in the Gulf-of-Paria, where water depths average approximately 50 feet.
A successful exploration program was completed in 1999 with two wells drilled, cased, and tested. Both wells tested commercial quantities of oil that resulted in a declaration of commerciality in Sub-Block A, as well as confirming the prospectivity of the overall trend. James Shipka, Vice President, Geosciences said, “The East Brighton property is a significant asset and presents a great opportunity for the Company. The successful testing of PBM 1 and 2 in the developed Nariva sands present in the Brighton Marine field has established East Brighton as an on-trend extension with significant resource potential.”
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 renewal, 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 $3.0 million over the three year period. The commitments are expected to be funded through future cash flows.
Formal signing of the License is expected to take place in Port of Spain, Trinidad prior to the end of February, 2014.
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 Company’s website at www.touchstoneexploration.com.
READER ADVISORY – Forward Looking Statements
The information herein contains forward-looking statements and assumptions. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”, continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe” and other similar expressions. Statements relating to “reserves” and “resources” are deemed to be forward looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves and resources described exist in the quantities predicted or estimated, and can be profitably produced in the future. Such statements represent the Company’s internal projections, estimates or beliefs concerning future growth, results of operations based on information currently available to the Company based on assumptions that are subject to change and are beyond the Company’s control, such as: production rates and production decline rates, the magnitude of and ability to recover oil and gas reserves, plans for and results of drilling activity, well abandonment costs and salvage value, the ability to secure necessary personnel, equipment and services, environmental matters, future commodity prices, changes to prevailing regulatory, royalty, tax and environmental laws and regulations, the impact of competition, future capital and other expenditures (including the amount, nature and sources of funding thereof), future financing sources, business prospects and opportunities, among other things. By their nature, forward-looking statements are subject to numerous known and unknown risks and uncertainties that could significantly affect anticipated results in the future and accordingly, actual results may differ materially from those predicted. Although the Company’s management believes that the expectations and assumptions reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievement since such expectations and assumptions are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies.
The Company is exposed to numerous operational, technical, financial and regulatory risks and uncertainties, many of which are beyond its control and may significantly affect anticipated future results. Operations may be unsuccessful or delayed as a result of competition for services, supplies and equipment, mechanical and technical difficulties, ability to attract and retain qualified employees on a cost-effective basis, commodity and marketing risk and seasonality. The Company is subject to significant drilling risks and uncertainties including the ability to find oil reserves on an economic basis and the potential for technical problems that could lead to well blowouts and environmental damage. The Company is exposed to risks relating to the inability to obtain timely regulatory approvals, surface access, and access to third party gathering and processing facilities, transportation and other third party related operation risks. The Company is exposed to risks related to recent acquisitions including unforeseen difficulties in integrating acquired companies, properties, personnel and infrastructure into the Company’s operations; the outcome of litigation brought against the Company or acquired companies or other disputes involving the Company or any acquired companies; or the failure generally to realize the anticipated benefits of such acquisitions. The Company is subject to industry conditions including changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced. There are uncertainties in estimating the Company’s reserve base due to the complexities in estimated future production, costs and timing of expenses and future capital. The financial risks the Company is exposed to include, but are not limited to, the impact of general economic conditions in Canada and the Republic of Trinidad and Tobago, the ability to access sufficient capital from internal and external sources, changes in income tax laws or changes in tax laws, royalties and incentive programs relating to the oil and gas industry, fluctuations in natural gas and crude oil prices, interest rates, the U.S./Canadian dollar exchange rate and the U.S/Trinidad and Tobago dollar exchange rate. The Company is subject to regulatory legislation, the compliance with which may require significant expenditures and non-compliance with which may result in fines, penalties or production restrictions or the termination of licence, lease operating or farm-in rights related to the Company’s oil and gas interests in Trinidad and Tobago.
Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and as such, undue reliance should not be placed on forward-looking statements. Readers are also cautioned that the foregoing list of factors and assumptions is not exhaustive. The Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. Additional information on these and other factors that could affect the Company’s operations and financial results are included elsewhere herein and in reports, documents and disclosures on file with Canadian securities regulatory authorities and may be accessed on SEDAR.
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. Ron Bryant
President & Chief Operating Officer
(403) 514-0383 (FAX)
Touchstone Exploration Inc.
Mr. Paul R. Baay
Chairman & Chief Executive Officer
(403) 514-0383 (FAX)