Touchstone Exploration Inc., has announced that it intends to complete a private placement directed towards United Kingdom institutional investors.
The company is raising gross proceeds of £3.0 million (approximately C$5.0 million) by way of a placing of 25 784 285 new common shares of no par value (the "New Common Shares") at a price of 11.5 pence (approximately C$0.20) per New Common Share (the "Placement Price"). The Placement Price represents a 6.1% discount to 12.25 pence, which was the closing price of the company’s Common Shares on AIM on December 7, 2017.
The company previously announced that it plans to drill four wells on its Coora 2 and WD-8 properties commencing in January 2018. The company intends to use the net proceeds from the Private Placement of approximately £2.7 million (approximately C$4.6 million) to finance the expansion of Touchstone’s 2018 drilling programme from four wells to ten wells. The additional wells are expected to be drilled on the Company’s Coora 1, WD-4, WD-8 and South Palo Seco properties. In conjunction with the enlarged drilling programme, Touchstone’s Board of Directors also approved a 24 well recompletion programme in 2018.
Shore Capital and GMP FirstEnergy acted as joint brokers in connection with the Private Placement. Mackie Research Capital Corporation acted as a strategic adviser.
Paul Baay, President and Chief Executive Officer, commented:
“We are pleased to be able to commit this additional funding into a continuous ten well 2018 drilling programme in Trinidad. Not only will the enlarged capital programme allow for greater cost efficiencies, it will also satisfy our lease operatorship agreement minimum work obligations through 2020. We would like to thank our shareholders for their continued support as we enter an ambitious growth period in 2018.”
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/08122017/touchstone-exploration-3-million-placement-and-increase-drill-programme/