The Canadian energy company operating in T&T, Touchstone Exploration, has entered into an agreement with its existing Trinidad-based lender for an increase in borrowing capacity by US$13 million.
A statement from the company yesterday said the parties are currently documenting an amended and restated bank loan agreement and related security registrations, following which the additional credit capacity will become effective.
It explained that the parties are currently documenting an amended and restated bank loan agreement and related security registrations, following which the additional credit capacity will become effective.
The principal changes included in the amended bank loan are a new US$10 million five-year non-revolving term loan facility, with no principal repayment in the first year and sixteen equal and consecutive quarterly payments thereafter; and an increase in Touchstone’s current revolving loan facility borrowing capacity from US$7 million to US$10 million, which will mature two years from the execution date and may be renewed at the option of the parties thereafter.
The statement added that following execution of the amended bank loan, Touchstone’s facilities will consist of its unchanged existing seven-year term loan facility, the new five-year US$10 million term loan facility and the increased US$10 million revolving loan facility.
The existing seven-year non-revolving term loan facility has a current principal balance of US$21 million, with 14 equal and consecutive quarterly principal payments of US$1.5 million outstanding through to the June 15, 2027 maturity date.
“We have US$7 million drawn on our revolving loan facility, resulting in an aggregate US$28 million in bank debt principal currently outstanding.
“We intend to use the additional amended bank loan facility borrowing capacity to finance our 2024 capital programme as presented in our December 19, 2023 news release entitled Touchstone announces 2024 capital budget, preliminary 2024 guidance and an operational update,” Touchstone further explained.
Regarding its drilling operations, Touchstone has commenced drilling the Cascadura-3 development well and the CO-374 development well.
Cascadura-3 was spud on March 1, 2024 from its Cascadura C surface location on the Ortoire block in which the company has an 80 per cent working interest. The CO-374 was spud on February 28, 2024 on its CO-1 block, in which Touchstone has a 100 per cent working interest.
Touchstone Exploration is a Calgary, Alberta-based company engaged in the business of acquiring interests in petroleum and natural gas rights and the exploration, development, production and sale of petroleum and natural gas.
Touchstone is currently active in onshore properties located in T&T.
