Touchstone Exploration through its wholly owned Trinidadian subsidiary, recently completed a 100% acquisition of the share capital of Shell Trinidad Central Block Limited. The acquired entity, now renamed Touchstone Trinidad Central Block Ltd., holds a 65 percent operating interest in the onshore Central Block exploration and production licence. Heritage Petroleum Company Limited holds the remaining 35 percent participating interest. The Central Block asset includes four producing natural gas wells and a gas processing facility.
Touchstone stated in an operational update that gross production volumes from Central Block averaged 2,969 boe/d (1,930 boe/d net) during the first quarter of 2025, comprising approximately 16.74 MMcf/d of natural gas and 179 bbls/d of NGLs.
The company went on to say that based on preliminary field estimates, second quarter 2025 gross production averaged 3,023 boe/d (1,965 boe/d net), comprised of approximately 17.05 MMcf/d of natural gas and 181 bbls/d of NGLs.
Natural gas from the Central Block is sold under two separate contracts, one linked to LNG export pricing and the other to domestic market pricing, primarily supplying Trinidad's petrochemical sector. LNG sales are subject to vessel availability, referred to as liftings.
From January through April 2025, eleven LNG liftings (including associated liquids) were completed, totaling 2,207,696 MMBtu. An additional 11,065 MMBtu was sold into the domestic market. These volumes generated gross revenue of $13.6 million ($8.9 million net). After transportation and processing costs, gross revenue totaled $8.9 million ($5.8 million net). The Central Block also generated $1.0 million in gross revenues ($0.65 million net) from condensate sales at the facility, resulting in total gross revenue of $9.9 million ($6.4 million net) for the period. All sales volumes are subject to a 12.5 percent state royalty and applicable plant operating costs.
The LNG liftings and associated liquids achieved an average realized price of $6.15 per MMBtu, translating to a plant gate price of $4.00 per MMBtu after deductions. Domestic sales achieved an average net plant gate price of $4.33 per MMBtu. Condensate was sold at an average price of $48.49 per barrel.
Paul R. Baay, President and Chief Executive Officer, said "We are pleased to provide our first operational update on the Central Block following the successful completion of the acquisition. Since the completion, we have delivered quarter-over-quarter production growth through continued plant optimization - an excellent achievement by our Central Block team.
This update also highlights the strategic advantage of integrating LNG-based pricing into our marketing portfolio. With commercial documentation complete and the first LNG payment expected by the end of July, we are positioned to benefit from predictable cash flows under the export contract.
The Central Block's strong performance supports our acquisition rationale and enhances our marketing flexibility, diversifying revenue streams across LNG, petrochemical, and fixed-price gas sales."