Shareholders will also vote on a proposal for a one-for-two Touchstone recently reported oil production of 1,700 bpd in the fourth quarter of 2013.
Under Friday’s deal, each Touchstone share is to be exchanged for 0.471 of a Petrobank share, a ratio based on recent 20-day volume-weighted average prices.
Shareholders will also vote on a proposal for a one-for-two share consolidation.
The merger will result in a company with $25 million in cash and 3.5 million Lightstream shares worth $20 million, resulting in working capital of $10 million and zero net debt, and production of over 2,000 bpd of oil.
It would have proved plus probable reserves of 11 million barrels of oil.