Touchstone Exploration Inc., Calgary, has agreed to acquire Trinity Exploration and Production Plc in an all-share deal with an implied value of about $30.1 million.
Trinity is a crude oil exploration, development, and production company with onshore and offshore assets solely in the Republic of Trinidad and Tobago.
The combination would create “a Trinidadian operator of scale with a significant inventory of onshore and offshore exploration and development assets,” Touchstone said in a release May 1, and “combined funds flow from operations from an increased production base will allow the combined company to invest in multiple development programs concurrently.”
On a pro-forma basis, the deal is expected to create a producing portfolio of 11,700-12,400 boe/d (based on 2024 average daily production guidance from each company) with combined estimated proved plus probable reserves of about 80.3 MMboe as of Dec. 31, 2023, according to Touchstone.
The combine would hold a portfolio of exploration and development prospects across Trinity's onshore Hummingbird portfolio and Buenos Ayres block (subject to execution of license agreement), as well as its TGAL discovery at the offshore Galeota block, and at Touchstone’s Ortoire area and Cipero, Charuma, and Rio Claro blocks (subject to execution of license agreements).
Completion of the deal—subject to regulatory, stock exchange, and Trinity shareholder approvals—is expected to close by the end of this year’s third quarter. Following, existing Touchstone shareholders will own about 80% of the post-acquisition Touchstone shares, and Trinity shareholders will own about 20%.
