The Ministry of Energy and Energy Industries has announced the granting of the Exploration and Production (Public Petroleum Rights) Licence for the Rio Claro Block situated in the Wards of Charuma, Cocal, Ortoire and Guayaguayare to NGC E&P Investments Limited and Primera Oil and Gas Limited, a wholly owned subsidiary of Touchstone Exploration Inc. The official signing ceremony took place on 4th November 2024 at Ministry of Energy and Energy Industries’ International Waterfront Complex, Head-Office, Port-of-Spain.
Present at the ceremony were the Honourable Stuart R. Young S.C, M.P. Acting Prime Minister of the Republic of Trinidad and Tobago, Minister of Energy and Energy Industries and Minister in the Office of the Prime Minister; Ms. Penelope Bradshaw-Niles, Permanent Secretary, Ministry of Energy and Energy Industries; Dr. Joseph Khan, Chairman, National Gas Company; Mr. Howard Dottin, Director, National Gas Company; Mr. Paul Baay, Director, Primera Oil and Gas Limited; and Mr. Joseph Pancham, Director, Primera Oil and Gas Limited.
The agreement to execute this licence represents the culmination of direct negotiations among the Ministry of Energy and Energy Industries, NGC E&P Investments Limited and Primera Oil and Gas Limited.
The Rio Claro Block is an onshore block neighbouring the Cascadura Gas Development in the Ortoire Block which is also operated by Primera Oil and Gas Limited and projected to yield significant gas production.
In June 2024, Primera Oil and Gas Limited and NGC E&P Investments Limited was granted the Exploration and Production Licences in respect of the Charuma and Cipero Blocks arising out of the 2022 Onshore and Nearshore Competitive Bid Round. Notably, the Rio Claro Block is bounded to the north by the Charuma Block and to the south by the Ortoire Block.
The key provisions of the Rio Claro licence are the financial obligations to the State and the work programme to be undertaken by the licensee. The financial obligations include bonuses, minimum
payments and annual surface rent. Provisions have also been made for training and research and development (R&D) contributions along with scholarships for nationals. The licensee has committed to a minimum exploration work programme which includes the drilling of three (3) exploration wells and the reprocessing of seismic data.
At the signing ceremony Minister Young stated, “As we engage in ongoing exploration of onshore, shallow, and deep-water regions, it is imperative that we sustain our partnerships with our upstream operators to advance the development of our hydrocarbon resources and foster a competitive fiscal landscape that encourages investment. The E&P Licence being signed today reflects our acknowledgment of the necessity to maintain competitiveness to draw in investment.”
Paul R Baay, President and Chief Executive Officer, said "The issuance of the Rio Claro License aligns with the commencement of production from the Cascadura C well pad. 3D seismic data indicates that a substantial portion of the Cascadura structure extends into the Rio Claro License area. This creates a significant opportunity, as any potential natural gas discoveries on this block can seamlessly integrate into our newly commissioned gathering system at the Cascadura C location, situated near the western boundary of the Rio Claro acreage. Notably, these resources will be marketed under a distinct natural gas arrangement, separate from our existing Ortoire agreement.
Subject to regulatory approvals, we anticipate drilling the first commitment well on this block originating from the Cascadura pad C surface location and targeting a bottom-hole location within the new Rio Claro License.
Beyond its strategic alignment with the Cascadura field, the Rio Claro property adds considerable value by granting us full control over the Kraken Cretaceous prospect. Additionally, it enhances our position on the highly prospective Herrera fairway, with updip closures on several promising prospects."
In January 2023, POGL entered into an asset exchange agreement with a privately held Trinidadian entity, involving the exchange of specific onshore assets in Trinidad with no cash consideration. Under the terms of the initial agreement, POGL agreed to transfer its 100 percent working interests in the Fyzabad, San Francique, and Barrackpore producing blocks in exchange for the counterparty's working interests in the Rio Claro Licence, Balata East, and Balata East Deep Horizons blocks.
The asset swap was contingent upon the counterparty obtaining an extension of the Rio Claro Licence. However, due to regulatory delays in securing the extension, the parties amended the agreement in October 2023. This supplemental agreement divided the asset swap into two potential exchanges. The first exchange, involving POGL's 100 percent working interest in the privately leased San Francique field for the counterparty's 100 percent working interest in the Balata East block, was completed effective June 1, 2024. As POGL directly negotiated the Rio Claro Licence with the MEEI, the completion of this negotiation marked the conclusion of the transaction, and the second asset exchange, which lapsed on August 31, 2024, will no longer be pursued by Touchstone.