Touchstone Exploration Inc (AIM:TXP, TSX:TXP, OTC:PBEGF) revealed that its subsidiary, Primera Oil and Gas Limited (POGL), has been awarded the Cipero onshore block in the Trinidad and Tobago 2022 Onshore and Nearshore Competitive Bid Round.
The company said Trinidad and Tobago Ministry of Energy and Energy Industries (MEEI) notified POGL of the award and authorized discussions for the grant of an Exploration and Production (Public Petroleum Rights) Licence for the Cipero block.
However, POGL's bid on the Charuma block, spanning 72,784 gross acres, did not meet the technical requirements for the grant of a licence. Despite this, the Trinidad and Tobago government has allowed discussions with POGL to improve the minimum work program for a possible licence grant.
The Cipero block, covering 29,924 gross acres, holds strategic importance due to its proximity to Rio Claro and Touchstone's Ortoire block. Under the successful bid, POGL has committed to conducting geological studies, reprocessing existing 2D seismic data, and drilling four exploration wells within the initial six-year exploration period of the licence.
Heritage Petroleum Company Limited is expected to hold a 20% working interest in the Cipero block, with all exploration work commitments carried during the six-year term.
In a statement, Paul Baay, the president and CEO of Touchstone Exploration, expressed his enthusiasm about the outcome, commenting: "With this successful outcome, we have been able to secure extensive acreage in the Herrera fairway."
Baay highlighted the primary geological target as the Herrera Formation and the identification of additional targets within the Cretaceous. He emphasized that the execution of the licence would involve geological studies, seismic data reprocessing, and regulatory permits, which could take at least three years.
Baay concluded by mentioning the company's excitement to begin working on the block and promised further updates and details upon the execution of the licence.
The company said the award signifies Touchstone Exploration's progress in expanding its presence in Trinidad and Tobago's energy sector and its commitment to conducting extensive exploration activities in the awarded block.