Touchstone Exploration has announced a proposed placing in the UK and Canada of up to US$30 million (approximately £23.2 million and C$40.0 million) through the issue of common shares of no par value with institutional and other investors in the United Kingdom and Canada. In the event of excess demand, the Company reserves the right to increase the size of the Placing. The Placing in the UK is being completed by way of an accelerated bookbuild and placees will subscribe for Placing Shares pursuant to the terms and conditions set out in the Appendix to this announcement. In Canada, placees will subscribe for Placing Shares pursuant to customary subscription agreements. Shore Capital and Canaccord are acting as Joint Bookrunners in connection with the UK Placing. Canaccord is Sole Bookrunner in respect of the Canadian Placing. 

Background to the Placing and Use of Proceeds

• To date, the Company has drilled three successful gross exploration wells (2.4 net) on the Ortoire block, onshore in the Republic of Trinidad and Tobago (Touchstone 80% working interest). Touchstone spudded its fourth exploration well, Cascadura-Deep, on October 27, 2020. 
• On the basis of three significant natural gas discoveries to date, the Company is seeking to raise up to US$30 million to fund continued exploration, development and production activities at Ortoire, including:
• Cascadura-1ST1 – surface facility development;
• Chinook-1 – completion, testing and potential surface facility development;
• Cascadura Deep – drilling, potential completion, testing and surface facility development; and

Royston – drilling and potential completion and testing.

The Company also intends to use a portion of the net proceeds of the Placing to fund a seismic program in order to fulfil its work commitments under the Ortoire exploration and production licence, as well as for working capital purposes.

Details of the UK Placing

The Placing is being completed within the Company's existing share issuance authorities. Shore Capital and Corporate Limited and Shore Capital Stockbrokers and Canaccord Genuity will be conducting an accelerated book building process, in respect of the UK Placing. The book will open with immediate effect. Shore Capital and Canaccord have entered into an agreement with Touchstone under which, subject to the conditions set out therein, Shore Capital and Canaccord will agree to use their respective reasonable endeavours to procure subscribers for the Placing Shares in the UK.

KeyFacts Energy: Touchstone Exploration Trinidad and Tobago country profile