Touchstone Exploration Inc (LON:TXP) (TSE:TXP) has raised US$11.6mln (£9mln) through a share placing to institutional investors, with the new funds earmarked for the acceleration of exciting exploration activities in the Ortoire block.
The Trinidad-focused oil junior has enjoyed breakthrough success with its exploration campaign at Ortoire to date, most recently with the Cascadura-1ST1 well confirmed as a significant liquids-rich natural gas discovery.
Cascadura-1ST1 encountered a total of 777 feet of pay in the Herrera formation, and first stage testing covered the lower-most 162 feet.
WATCH: Touchstone Exploration now has the 'certainty' to accelerate its Ortoire plans after £9mln raise
Flow rates were measured at 5,180 barrels oil equivalent per day (boepd) over a fourteen-hour test period, and a peak rate measured at 5,736 boepd.
Prior to Cascadura, Touchstone also had success with the Coho discovery at Ortoire.
"The results of the first two wells drilled at Ortoire have exceeded our expectations, and as a result the Board has decided to complete the Placing in order to accelerate exploration drilling on the property,” Paul Baay, Touchstone chief executive said in a statement.
“We are delighted by the support we have received from new and existing investors We continue to thank our shareholders for their ongoing support, and we look forward to continuing to update shareholders as the exploration program continues," he added.
Touchstone is issuing 22.5mln new shares priced at 40p each to institutional investors, with the placing arranged by Shore Capital as book runner.