Touchstone Exploration Inc.
TSX VENTURE : TAB

Touchstone Exploration Inc.

April 20, 2011 16:34 ET

Touchstone Announces Preferred Bidder Status With Respect to Proposed Acquisition

Interests in 14 Producing and Non-Producing Oil and Gas Properties in Trinidad and Tobago

CALGARY, ALBERTA--(Marketwire - April 20, 2011) - Touchstone Exploration Inc. (TSX VENTURE:TAB) ("Touchstone" or "the Company") is pleased to announce that Touchstone, through the Company's wholly-owned Trinidad subsidiary Territorial Services Limited,has been selected as the preferred bidder with respect to the proposed divestment by CL Financial Limited. of its ownership of Primera Oil & Gas Ltd., Primera Oilfield Management Services Ltd. and Primera East Brighton Ltd.(collectively, the "Primera Group"). As a result, Territorial Services Limited has entered into an escrow agreement and paid a commitment fee that is refundable under limited circumstances. Under the terms of this commitment, the parties have until May 11, 2011 (subject to extension by CL Financial Limited.) to enter into a binding form ofShare Purchase Agreement.The Company and CL Financial Limited are currently negotiating a form of definitive Share Purchase Agreement.

Other than the terms and conditions of the escrow agreement, all matters related to the proposed acquisition are non-binding and is subject tothe execution and delivery of a binding definitive Share Purchase Agreement. There can be no assurance that the transaction will be completed as proposed or at all.

Cautionary Note Concerning Possible Reserves -Possible reserves are those additional reserves that are less certain to be recovered than probable reserves. There is a 10% probability that the quantities actually recovered will equal or exceed the sum of proved plus probable plus possible reserves.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities of Touchstone Exploration Inc. have not been registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

The companies in which Touchstone Exploration Inc. directly and indirectly owns investments or assets are separate entities. In this news release "Touchstone" and "the Touchstone Group" are sometimes used for convenience where references are made to Touchstone Exploration Inc. and its subsidiaries in general.

Cautionary Note Regarding Forward-looking Statements: Information in this press release that involves Touchstone's expectations, plans, intentions or strategies regarding the future are forward-looking statements that are not facts and involve a number of risks and uncertainties. Touchstone generally uses words such as "outlook", "will", "could", "would", "might", "remains", "to be", "plans", "believes", "may", "expects", "intends", "anticipates", "estimate", "future", "plan", "positioned", "potential", "project", "remain", "scheduled", "set to", "subject to", "upcoming", and similar expressions to help identify forward-looking statements. The forward-looking statements in this release are based upon information available to Touchstone as of the date of this release, and Touchstone assumes no obligation to update any such forward-looking statements. Forward-looking statements believed to be true when made may ultimately prove to be incorrect. These statements are not guarantees of the future performance of Touchstone and are subject to risks, uncertainties and other factors, some of which are beyond its control and may cause actual results to differ materially from current expectations. For further information regarding specific risks and uncertainties applicable to Touchstone please see Touchstone's Annual Information Form and the most recent management discussion and analysis may be viewed with other Touchstone disclosure documents through the Internet on the Canadian System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com. Touchstone does not undertake any obligation to publicly update forward-looking information except as required by applicable securities law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Touchstone Exploration Inc.
    Mr. Paul Baay
    Chairman & Chief Executive Officer
    (403) 992-8407
    (403) 514-0383