CALGARY, ALBERTA–(Marketwired – March 14, 2016) – Touchstone Exploration Inc. (“Touchstone” or the “Company”) (TSX:TXP) announces that the previously announced agreement to purchase certain Trinidad onshore producing assets for US$20.8 million (the “Agreement”) has been terminated pursuant to the terms of the Agreement, as the seller was unable to satisfy the required conditions precedent prior to the March 13, 2016 backstop date.
In conjunction with the termination of the Agreement, and pursuant to the terms of the Escrow Agreement, the Company has served notice on the Escrow Agent for the return of the US$2.08 million deposit which was paid upon execution of the Agreement. The deposit is to be returned by the Escrow Agent within five business days of the notice. As previously disclosed, the Company will repay a portion of its credit facility with these funds upon receipt.
Touchstone remains interested in the assets and has indicated to the seller that it remains willing to have meaningful discussions in regard to acquiring the assets.
“While we are disappointed that the transaction has been terminated, we are fully committed to the continued success of Touchstone and its onshore prospects in Trinidad,” said Paul Baay, President and Chief Executive Officer of Touchstone. “We remain open to discussions on a path forward to reach a new agreement but our immediate focus is the continued development of our existing Trinidad properties.”