Touchstone acquires Trinidad E&P player Trinity

Touchstone Exploration has acquired Trinidad-focused Trinity Exploration & Production in an all-shares deal, the Canadian upstream player said on Wednesday.

Trinity holds both onshore and offshore assets in Trinidad and Tobago and the deal gave it an implied value of USD 30.1 million. The company held reserves and resources of around 51.6 million stock tank barrels as of end-2023.

The deal is subject to approval from the government and Trinity’s shareholders and its completion is expected by the end of Q3 2024.

The combined company will benefit from greater economies of scale and recurring annual cost synergies with a significant anticipated reduction in combined fixed overhead and corporate costs, Touchstone said.

“We believe this acquisition represents a compelling strategic opportunity which will deliver enhanced scale, balance sheet strength, and growth opportunities,” Touchstone president and CEO Paul Baay said.

“The business combination will create an upstream oil and natural gas company of increased scale in Trinidad, enhancing our ability to deliver growth in reserves, production and cashflows for the benefit of our combined shareholders and local stakeholders. The
combined group will be able to invest in multiple development programmes and accelerate the growth potential of the enlarged asset base, thereby giving us the potential to materially enhance long-term value.”

Canadian E&P player Touchstone Exploration is one of the largest independent onshore oil producers in Trinidad and Tobago. The company’s exploration efforts are focused on its Ortoire block, in which it holds an 80% operated working interest.

Read our latest interview with Touchstone Exploration here.

As of Q4 2023, Touchstone had an average daily production of 8,504 boepd. The acquisition is expected to create a producing portfolio of around 11,700-12,400 boepd on a pro forma basis.

Image courtesy of Touchstone Exploration.