CALGARY, ALBERTA--(Marketwired - Sept. 15, 2016) - Touchstone Exploration Inc. ("Touchstone" or the "Company") (TSX:TXP) announces an update regarding its credit facility.
Effective September 15, 2016, the Company and its lender executed an Amendment and Limited Waiver to the Credit Agreement (the "Amendment"). The Amendment cured the Company's July and August 2016 monthly production covenant breaches, as Touchstone did not achieve the average minimum production requirement of 1,400 barrels of oil per day. The Amendment also extended the previously disclosed US$1,000,000 prepayment due on August 31, 2016 to September 30, 2016 should the East Brighton letter of credit remain outstanding. In the event that this prepayment occurs or the East Brighton letter of credit is cancelled, the borrowing base will concurrently be reduced by an equal amount.
Currently there is no balance drawn on the credit facility, and the full US$6,000,000 borrowing base is dedicated to the Company's letter of credit relating to the East Brighton property. Upon the anticipated closing of the East Brighton disposition and the cancellation of the associated letter of credit, the Company and its lender will assess the credit facility which may include a new borrowing base redetermination.
Advisory Regarding Forward-Looking Statements
Certain information provided in this news release may constitute forward-looking statements within the meaning of applicable securities laws. Specifically, this news release contains forward-looking statements relating to the Company's expected sale of its East Brighton property, cancellation of the associated letter of credit and future discussions with the Company's lender with respect to review of the Company's credit facility and its borrowing base. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. Certain of these risks are set out in more detail in the Company's Annual Information Form dated March 24, 2016 which has been filed on SEDAR and can be accessed at www.sedar.com. The forward-looking statements contained in this news release are made as of the date hereof, and except as may be required by applicable securities laws, the Company assumes no obligation to update publicly or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.
Touchstone Exploration Inc. is a Calgary based company engaged in the business of acquiring interests in petroleum and natural gas rights, and the exploration, development, production and sale of petroleum and natural gas. Touchstone is currently active in onshore properties located in the Republic of Trinidad and Tobago. The Company's common shares are traded on the Toronto Stock Exchange under the symbol "TXP".