Touchstone Exploration Acquires Trinity Exploration in All-Share Deal

Touchstone Exploration Inc., based in Calgary, has announced the acquisition of Trinity Exploration and Production Plc, an oil company with assets in Trinidad and Tobago. The deal, structured as an all-share transaction, values Trinity at approximately $30.1 million, reflecting a 71.9% premium over its last closing price. Trinity shareholders will receive 1.5 Touchstone shares for each Trinity share held.

This acquisition is not classified as significant under Canadian securities laws, even though it involves issuing about 24.91% of the existing Touchstone shares. The transaction, expected to close by the end of Q3 2024, is subject to regulatory, stock exchange, and Trinity shareholder approvals. Trinity's board has advised its shareholders to vote in favor of the deal.

The combined entity aims to create a significant player in the Trinidad oil and gas sector, improving scale and financial strength. Post-acquisition, existing Touchstone shareholders will own about 80% of the new shares, with Trinity shareholders owning the remaining 20%. The merger is predicted to enhance operational and cost efficiencies, increasing the potential for accelerated growth and value addition.