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(Sharecast News) - Touchstone Exploration announced on Tuesday that its subsidiary Primera Oil and Gas (POGL) has been awarded the Cipero onshore block in the Trinidad and Tobago 2022 onshore and nearshore competitive bid round.
The AIM-traded company said the notification was received from the Trinidad and Tobago Ministry of Energy and Energy Industries (MEEI) on 12 June.
Discussions between the MEEI and POGL for the grant of an exploration and production public petroleum rights licence for the Cipero block had been authorised by the Trinidad and Tobago government.
However, the bid submitted by POGL for the 72,784 gross acre Charuma block did not meet the technical requirements for the grant of a licence, the board reported.
Nevertheless, the government had authorised the MEEI to engage in discussions with POGL to improve the minimum work programme, potentially leading to the granting of a license for Charuma.
The Cipero block, spanning an area of 29,924 gross acres, held strategic importance due to its proximity to Rio Claro and Touchstone's Ortoire block, the company explained.
As part of its successful bid, Touchstone committed to completing various geological studies, reprocessing existing 2D seismic data, and drilling a total of four exploration wells within the initial six-year exploration period of the licence.
Heritage Petroleum Company was expected to hold a 20% working interest in the Cipero block, with all exploration work commitments being carried out during the six-year exploration term of the licence.
The presence of Herrera and Cretaceous prospects had been identified within the Cipero block, further enhancing its potential.
Touchstone said POGL would now enter into discussions with the MEEI to potentially enhance the minimum work programme bid for the Charuma block, with the aim of meeting the technical requirements for the grant of a licence.
"With this successful outcome, we have been able to secure extensive acreage in the Herrera fairway," said president and chief executive officer Paul Baay.
"Although the primary geological target for the Cipero acreage is the Herrera Formation, our team has also identified additional targets within the Cretaceous."
Baay said that in addition to the execution of the licence, the firm would be required to conduct geological studies, reprocess existing 2D seismic data, and apply for regulatory permits prior to drilling, which was expected to take at least three years.
"We are excited to formally commence working on the block and will provide further updates and details when the licence has been executed."
At 1346 BST, shares in Touchstone Exploration were up 1.02% at 59.6p.
Reporting by Josh White for Sharecast.com.
