Touchstone Exploration Inc (AIM:TXP, TSX:TXP, OTC:PBEGF) has announced plans to raise up to £10.6mln through placings in the UK and Canada to fund the further development of its operations in Trinidad.
A minimum of C$7.5mln (£4.5mln) and up to a maximum of C$10mln will come from a placing in Canada and a further minimum of £4.5mln from a similar-sized placing in the UK.
Total gross proceeds from the two placings, which are at a share price of 54.5p or equivalent, are expected to be between £9mln and £10.6mln and will be used to accelerate the company's Ortoire licence exploration and development program.
Touchstone recently brought the Coho-1 gas well at Ortoire onstream delivering average net natural gas sales of 7.3 MMcf/d (approximately 1,212 boe/d) over 19 operational days in October.
The junior also has a permit to develop a multi-well production facility at Cascadura, another target at Ortoire, with a daily production capacity of 200 MMcf of natural gas, 5,000 bbls of associated liquids and 200 bbls of produced water and storage capacity of 8,800 barrels of liquids.
This permit also covers the drilling of up to eight wells on two additional pads at this site.
Construction of this surface facility and infrastructure required to bring production online from two existing Cascadura wells is in progress, the company said.
Once production at Cascadura is online, and scheduled to be by the end of the first quarter of 2023, initial gross aggregate natural gas and associated liquids production from the Cascadura-1ST1 and Cascadura Deep-1 wells should be approximately 11,500 boe/d (9,200 boe/d net), it added.
Funds from the placings will also enable Touchstone to side-track the Royston-1ST1 well to test the nearby Herrera Formation and also to bring forward the drilling of the Cascadura-2 development well.