Trinity Exploration and Production shares rise after takeover deal

Touchstone to buy Trinity in all-share deal worth GBP241m

Trinity shareholders to receive 15 Touchstone shares for each Trinity share

Shares in Trinity Exploration Production rose on Wednesday after the company said it had agreed to an all-share takeover by Touchstone Exploration Inc. The deal values Trinity at around GBP241 million.

Under the terms of the agreement, Trinity shareholders will receive 15 new Touchstone shares for each Trinity share they own. The deal has been unanimously recommended by the boards of directors of both companies.

Trinity Exploration is an oil and gas exploration and production company with operations in Trinidad and Tobago. Touchstone Exploration is a Calgary-based oil and gas company with operations in Trinidad and Tobago, Canada, and Colombia.

The deal is expected to close in the third quarter of 2024. Once completed, the combined company will have a portfolio of producing and development assets in Trinidad and Tobago, Canada, and Colombia.

The acquisition of Trinity Exploration will give Touchstone a significant boost to its production and reserves. Trinity Exploration has a production capacity of around 6,000 barrels of oil equivalent per day. It also has a number of development projects that are expected to come online in the coming years.

The deal is also expected to be accretive to Touchstone's earnings per share. Touchstone said that it expects the deal to add 20% to its earnings per share in the first year after closing.

The acquisition of Trinity Exploration is a major step in Touchstone's growth strategy. The deal will give Touchstone a significant boost to its production and reserves, and it will also be accretive to Touchstone's earnings per share.