11:54 AM EST, 12/13/2024 (MT Newswires) -- (Updates shares.)

Touchstone Exploration ( PBEGF ) at last look rose 8.8% after a subsidiary, Touchstone Exploration ( PBEGF ) (Trinidad) (TETL), struck an agreement with BG Overseas Holdings to acquire all of Shell Trinidad Central Block (STCBL).

Under the deal terms, TETL will pay BG Overseas $23 million in cash prior to closing adjustments. Deal completion is subject to customary regulatory and partner approvals.

Touchstone is in talks with its Trinidad-based lender Republic Bank Limited to fund the acquisition upon closing.

The acquisition will have an effective date of Jan. 1, 2025, has a four-month-long stop date, and is expected to close in the second quarter of 2025.

STCBL holds a 65% operating working interest in the Central block exploration and production license and gas processing plant in the Republic of Trinidad and Tobago. Heritage Petroleum holds a 35% working interest.

Current gross production from the Central block is about 18 million cubic feet per day (MMcf/d) of natural gas and 200 barrels per day of natural gas liquids.

STCBL is a party to natural gas sales contracts for the Central block asset, providing access to both local and liquefied natural gas world gas market pricing. Touchstone has also identified opportunities for development and potential well locations.

The midstream assets of STCBL include an 80-MMcf/d gas processing plant, field natural gas and liquids flow lines, and a gas export pipeline to both the domestic market and the Atlantic LNG facility.

The deal also boosts Touchstone's base net production by about 2,080 barrels of oil equivalent per day.

Touchstone shares were last seen up $0.035 to $0.435 on the Toronto Stock Exchange.

Price: 0.43, Change: +0.03, Percent Change: +7.50