Shell's STCBL to be Acquired by Touchstone for $23 Million

Acquisition Overview - Touchstone Exploration is acquiring Shell Trinidad Central Block Ltd. for $23 million in cash from BG Overseas Holdings, aligning with its natural gas projects and providing access to global LNG prices [1] - The acquisition includes four wells in the Carapal Ridge, Baraka, and Baraka East natural gas pools, producing natural gas and natural gas liquids [2] Production and Infrastructure - Current production levels from the Central Block are 18 MMcf/d of natural gas and 200 bbls/d of natural gas liquids, equating to approximately 3,200 barrels of oil equivalent per day [3] - The block includes an 80 MMcf/d gas processing facility and a pipeline network, with plans for optimization, infill drilling, and exploration to maximize output [3] - The acquisition will increase Touchstone's net production by 2,080 boepd and enhance cash flow prospects [3] Ownership and Contracts - Post-acquisition, Touchstone will hold a 65% working interest in the Central Block exploration and production license, with Heritage Petroleum Company Ltd. retaining the remaining 35% [4] - The agreement includes three key gas marketing contracts, allowing Touchstone to leverage both local and global gas prices [5] Future Plans and Approvals - The acquisition is set to be effective from January 1, 2025, and is expected to close by the second quarter of 2025, pending necessary regulatory approvals [11] - Touchstone is in discussions with banks to secure financing for the acquisition [11] Strategic Impact - The acquisition will enhance processing capacity in the Herrera fairway and support the expansion of natural gas exports while strengthening local market supply [9]