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RNS Number : 1824L
Touchstone Exploration Inc.
17 July 2017
TOUCHSTONE ANNOUNCES SECOND QUARTER OPERATIONS UPDATE
Calgary, Alberta - July 17, 2017 - Touchstone Exploration Inc.
("Touchstone" or the "Company") (TSX / LSE: TXP) announces the
following operational update for the three months ended June 30,
2017 (the "second quarter").
Highlights
-- Achieved second quarter crude oil sales of 1,335 barrels per day ("bbls/d").
-- Realized an average price of US$45.51 per barrel in the second quarter of 2017.
-- Average field estimated daily oil production for the first
two weeks of July was 1,455 bbls/d.
-- The initial two wells of the 2017 drilling program were
completed and placed on production; the average combined field
estimated oil production for the first two weeks of July was 203
bbls/d.
-- The final two wells of the 2017 drilling program have been
drilled and cased for oil production encountering a combined net
oil pay of approximately 637 feet.
Production and Pricing
Second quarter 2017 crude oil production was 1,335 bbls/d,
representing an increase of 4% from 1,280 bbls/d produced in the
first quarter of 2017. Realized second quarter 2017 pricing for
crude oil was US$45.51 per barrel versus US$48.20 per barrel
received in the first quarter of 2017. The 6% decrease was a result
of a 8% decrease in the Brent reference price over the period and a
reduction in the realized Brent reference differential from
approximately 10% to 8%.
The Republic of Trinidad and Tobago was affected by Tropical
Storm Bret which struck the island on June 29(th) and 30(th) . The
storm had minimal impact on Touchstone's production, and no safety
issues were reported.
Drilling Campaign
Coora 1 Block
In the second quarter of 2017, the Company drilled and completed
two wells (CO-368 and CO369) on the Coora 1 property. Both wells
are currently on production (100% oil).
CO-368 was perforated on June 13, 2017 with the initial
completion targeting 15 feet of the estimated 195 feet of oil
bearing sand encountered in the Cruse formation. The well is
currently flowing 27deg API oil up 7" production casing through a
12/32" choke with average daily oil production over the first 26
days of 111 bbls/d. The Company anticipates the well will be placed
on pump once the pressure decreases. A larger interval in the well
was initially designed for completion but high initial pressures
required the well to be put to production immediately following the
completion. This well is the deepest well the Company has drilled
on the Coora 1 block and has verified the geological concept that
many of the deeper sands in the area are highly productive.
The CO-369 well was perforated on June 23, 2017 with the initial
completion targeting approximately 97 feet of the estimated 150
feet of oil bearing sands in the Cruse formation. The well was
immediately put to pump with an average daily oil production rate
of 151 bbls/d over the first 17 days of production. The well has
over 2,000 feet of pump submergence and will be further optimized
once additional pressure data is received.
Grand Ravine WD-4 Block
The PS-598 well was spud on June 8, 2017 and was drilled to a
total depth of 7,340 feet on June 29, 2017. Drilling was
interrupted due to Tropical Storm Bret but no additional costs were
incurred due to the delay. Wireline logs indicate approximately 355
feet of net oil pay as follows:
Upper Forest formation 260
feet
Lower Forest formation 59
feet
Cruse formation 36
feet
----------------------- -------
Total (net) oil 355
pay feet
The Company cased the well for oil production and has deferred
the completion of the well subsequent to the drilling of PS-599, as
the two wells share a common surface location. The initial
completion in the PS-598 well will target the lowest 36 feet of oil
sands encountered in the Cruse formation.
The PS-599 well was spud on June 30, 2017 and reached a total
depth of 6,926 feet on July 11, 2017. The well was drilled to
access hydrocarbons in a separate, but adjoining fault block to the
PS-598 well. Wireline logs indicate the presence of approximately
282 feet of net oil pay in both the Forest and Cruse formations as
follows:
Upper Forest formation 197
feet
Lower Forest formation 25
feet
Cruse formation 60
feet
----------------------- -------
Total (net) oil 282
pay feet
The Company will commence completion operations on the PS-598
well as soon as the drilling rig has moved off location and will
complete the Cruse sands in the PS-599 well immediately thereafter.
The initial completion in the PS-599 well will target lowermost 60
feet of oil sands encountered in the Cruse formation.
About Touchstone
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 and the AIM market of the London Stock Exchange under the
symbol "TXP".
Forward-Looking Statements
Certain information provided in this announcement may constitute
forward-looking statements within the meaning of applicable
securities laws. Forward-looking information in this announcement
may include, but is not limited to, statements relating to field
estimated production, the potential undertaking and timing of well
drilling and completions, and the quality and quantity of
prospective hydrocarbon accumulations as indicated by wireline
logs. 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 21, 2017 which has been filed on SEDAR and can be
accessed at www.sedar.com. The forward-looking statements contained
in this announcement 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.
For further information, please contact:
Touchstone Exploration Inc. Tel: +1 (403)
750-4487
Mr. Paul Baay, President and Chief
Executive Officer
Mr. James Shipka, Chief Operating
Officer
www.touchstoneexploration.com
Shore Capital (Nominated Advisor Tel: +44 (0) 20
and Joint Broker) 7408 4090
Nominated Adviser: Edward Mansfield
/ Mark Percy / James Wolfe
Corporate Broking: Jerry Keen
GMP FirstEnergy (Joint Broker) Tel: +44 (0) 207448
0200
Jonathan Wright / Hugh Sanderson
Camarco (Financial PR) Tel: +44 (0) 203
757 4980
Nick Hennis / Jane Glover / Billy
Clegg
Competent Persons Statement
In accordance with the guidelines of the Aim Market of the
London Stock Exchange, the technical information contained in this
announcement has been reviewed and approved by James Shipka, Chief
Operating Officer of Touchstone Exploration Inc. Mr. Shipka is a
qualified person as defined in the London Stock Exchange's Guidance
Note for Mining and Oil and Gas companies. Mr. Shipka has a
Bachelor of Science in Geology from the University of Calgary and
has over 29 years of oil and gas exploration and development
experience.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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