Touchstone lines up C$30 million placement of subscription receipts

Deal finances purchase of oil, gas properties in Trinidad and Tobago

By Susanna Moon

Chicago, May 11 - Touchstone Exploration Inc. said it plans to issue C$30 million of subscription receipts in a best-efforts private placement led by Paradigm Capital Inc. and FirstEnergy Capital Corp.

The company plans to use proceeds to fund its proposed acquisition of CL Financial Ltd.'s equity interest in Primera Oil & Gas Ltd., Primera Oilfield Management Services Ltd. and Primera East Brighton Ltd. through the company's wholly owned Trinidad subsidiary Territorial Services Ltd.

The purchase price for the assets is set for $50.4 million, according to a company press release.

The syndicate of agents for the deal also includes Canaccord Genuity Corp., CIBC World Markets Inc., Fraser Mackenzie Ltd. and Haywood Securities Inc.

The deal is expected to add more than 450 barrels of oil per day of production, doubling Touchstone's current production base.

Calgary, Alta.-based Touchstone is a petroleum and natural gas company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.