Touchstone Exploration Inc., through its wholly-owned subsidiaries, Touchstone Exploration (Barbados) Ltd. and Touchstone Exploration (Trinidad) Ltd., is actively engaged in the development and exploration of its oil and gas properties located in the Republic of Trinidad and Tobago. With interests in over 74,990 gross acres of exploration and development rights Touchstone is one of the largest independent onshore oil producers in Trinidad.
The islands of Trinidad and Tobago are the southernmost islands in the Caribbean and are located between the Atlantic Ocean and the Caribbean Sea, northeast of Venezuela. The southern tip of the island lies only 11 kilometers from the Venezuelan mainland, while the island of Tobago lies approximately 30 kilometers northeast of Trinidad. Trinidad is the Caribbean's largest producer of oil and natural gas. According to the BP Statistical Review of Energy, June 2015, Trinidad had proved oil reserves of 0.8 billion barrels as of January 2015 and produced an average of 112 thousand barrels of crude oil per day in 2014.
Trinidad has a long and successful history as an oil and gas producing nation. The first successful oil well was drilled in Trinidad in 1866 by Walter Darwent and by 1908 commercial oil production began onshore. Since then the country has developed a tremendous infrastructure in support of the energy industry and today is the world’s sixth largest LNG exporter and the largest LNG exporter to the United States. The country boasts one of the largest natural gas processing facilities in the Northern Hemisphere (with a processing capacity of almost 2 billion cubic feet per day and an output capacity of 70,000 barrels per day of Natural Gas Liquids) in addition to the state owned Pointe-a-Pierre oil refinery which has over 168,000 barrels per day of distillation capacity. According to HIS Global Insight, Trinidad is also the world’s largest exporter of ammonia and the second largest exporter of methanol.
Trinidad lies east of the South American continent in what is commonly referred to as the Colombia-Venezuela-Trinidad Oil Province – a broad but complex hydrocarbon filled basin which contains the second largest proven oil reserves in the world. Trinidad is situated at the triple junction formed by the meeting of three plates, the Caribbean, South American and North Atlantic Plates. As a result, this small island and its offshore surroundings is one of the most geologically complex areas of the world. The interaction of these plates at the triple junction has resulted in the formation of folded (anticlines) and faulted structures, ideal structure traps for the accumulation of petroleum.
To date, most wells have been drilled to structural traps or combination structural/ Stratigraphic traps. The sedimentary rocks which dominate the onshore reservoirs were deposited in a Fluvial-Deltaic and shallow marine environment sourced from Venezuela’s Orinoco River. Today these young sandstone deposits exhibit high porosity and permeability and are commonly found at relatively shallow depths of less than 2,000 meters which allows for low risk, economic recovery of the oil reserves.. The source rock from which most of the oil is generated is the Cretaceous age Naparima Hill Formation. The rocks of this formation outcrop at three locations in Trinidad, but the most accessible location is the San Fernando Hill which can be seen from any of the entrances into San Fernando.