Touchstone Exploration Inc., Calgary, has agreed to buy 100% interest in five oil blocks onshore Trinidad and Tobago for $20.8 million from Trinity Exploration & Production PLC.
The assets produce 1,490 b/d. Fyzabad-2, WD-13, and WD-14 adjoin Touchstone’s Fyzabad block while WD-5/6 and WD-2 are contiguous with Touchstone’s WD-4 block.
Touchstone said the acquisition will add 3 years of development drilling inventory and several low-risk exploration locations offsetting recent drilling successes.
The properties are governed by lease operating agreements with Petroleum Co. of Trinidad & Tobago.
The acquisition is expected to close by January 2016, but needs approval by regulators and Trinity shareholders.
Touchstone said the acquisition is consistent with its strategy of acquiring operated oil production with low decline rates and large volumes of original oil in place (OGJ Online, Nov. 4, 2014).