Shore Capital Markets analysts labelled Touchstone Exploration Inc (AIM:TXP, TSX:TXP, OTC:PBEGF)’s expanded debt facility with an existing Trinidad-based lender “a very encouraging development”.
Touchstone confirmed a binding term sheet with the lender to provide a US$13m increase in debt capacity as it kicks off the next phase of well drilling at the productive Cascadura field in Trinidad.
“Our last detailed note highlighted this as a key near-term catalyst for investors to look forward to, with our 2024 cash flow forecasts indicating more than adequate headroom if debt facilities were increased as hoped,” wrote house broker Shore Cap.
Analysts were also encouraged by Touchstone’s update on drilling operations, confirming that it has now spudded both the Cascadura-3 and CO-374 development wells.
“In our opinion, the timing of all of these workstreams remains consistent with the expectations laid out in our January note, with everything announced today (including expanded debt facilities) continuing to appear very consistent with our existing modelling assumptions,” said analysts.
Touchstone shares were changing hands for 52p on Tuesday.