TIDMTXP
RNS Number : 6589X
Touchstone Exploration Inc.
28 November 2017
TOUCHSTONE PROVIDES OPERATIONAL UPDATE
Calgary, Alberta - November 28, 2017 - Touchstone Exploration
Inc. ("Touchstone" or the "Company") (TSX / LSE: TXP), is pleased
to provide the following operational update.
Highlights
-- Achieved September 2017 and October 2017 crude oil sales of
1,369 and 1,472 barrels per day ("bbls/d"), respectively.
-- Production from the four wells drilled in 2017 remains
strong, contributing an average of 299 bbls/d during September and
October 2017.
-- The Company has commenced preparation of the drilling
locations of its next four wells. Drilling is expected to commence
in January 2018 and will be funded by existing cash on hand.
-- The Company's surface water disposal project on its Fyzabad
property continues to move forward, as Touchstone expects to drill
two shallow monitoring wells in the fourth quarter of 2017 and
anticipates the injection of produced water in the first quarter of
2018.
Production
Touchstone's September and October 2017 crude oil production
averaged 1,421 bbls/d. The Company's current field estimated
production is approximately 1,472 bbls/d (based on the previous
seven-day average).
Coora 1 Block
The CO-368 well has been producing for 165 days from 41 feet of
net oil sand in the Cruse Formation. The well has produced
approximately 9,520 barrels of oil during that period, an average
of 58 bbls/d. The well remains on pump and current field estimated
production is approximately 55 bbls/d.
CO-369 was placed on production on June 23, 2017 with a total of
71 feet of net oil sand perforated in the Cruse Formation. The well
has produced an average daily oil production rate of 181 bbls/d
over its first 156 days. The well is currently pumping and current
field estimated production is 201 bbls/d.
Grand Ravine WD-4 Block
The PS-598 well has encountered higher than expected water cuts
but continues to flow with significant reservoir pressure. Due to
the significantly higher volumes and pressure, production from the
well has been deliberately curtailed due to surface facility
constraints. The well has produced approximately 2,760 barrels of
oil in 124 days, representing an average of 22 bbls/d. Surface
upgrades are expected to be complete in the next 30 days, following
which the Company will increase the well flow rate to maximize oil
production. Current production from this well is approximately 26
bbls/d from 15 feet of net oil sands.
The PS-599 well has produced approximately 5,177 barrels over
its first 122 days of production, an average of 42 bbls/d. The well
has produced at less than a two percent water cut, however
production appears to be hampered by near well bore damage. Current
production is 19 bbls/d with indications that formation damage from
drilling fluids may be inhibiting inflow. The Company is working to
optimize production from this initial 40-foot net interval and is
evaluating several options including a solvent squeeze or fracture
stimulation.
Drilling Program
As previously announced, Touchstone is proceeding to drill the
next four wells in the Company's drilling inventory with
preparation currently underway on three surface locations.
Two wells will be drilled on the Forest Reserve WD-8 block,
targeting sands in the Lower Cruse Formation at approximately 4,700
feet. The wells will be drilled from individual surface locations
with accommodations being made for future drilling at each
location. The wells will be targeting deeper reserves in a
relatively undrained fault block. Oil sands are anticipated in the
Upper and Lower Forest Formations, as well as the Upper, Middle and
Lower Cruse Formations.
Two wells will be drilled on the Coora 2 block from a single
surface location with downhole targets in two separate fault
blocks. The primary target in both wells are oil sands in the Lower
Forest Formation, however both wells will be drilled to investigate
potential reserves identified in the Upper Cruse Formation at
depths of less than 4,000 feet. These two wells will complete the
Company's minimum work obligations on the Coora 2 block for the
period ending December 31, 2020.
As with the first four wells drilled in 2017, the Company is
awarding the drilling of these wells to a local drilling company on
a "turn key" basis. The first four wells of 2017 were drilled at a
cost of less than US$200 per foot, an approximate 41% reduction
versus the Company's previous drilling campaign in 2014. Quoted
costs for the next four wells reflect a further reduction in per
foot drilling costs of approximately 18%.
James Shipka, Chief Operating Officer, said:
"Production from the Company's 2017 drilling program continues
to exceed expectations and we are looking forward to returning to
the field to drill the next four wells. We will continue to execute
our strategy of drilling deeper in established pools, an approach
which we plan to utilize in evaluating all of our future drilling
prospects."
Water Disposal
Touchstone remains dedicated to implementing best practices
regarding produced water handling on all of its producing
properties. Trinidad's first produced water disposal project was
approved on the Company's Fyzabad block earlier in 2017 and the
Company expects to begin disposing produced water in the well in
the first quarter of 2018 following the drilling of two shallow
(200 feet) monitoring wells.
Touchstone is planning to conduct an injectivity test of a well
on its Grand Ravine WD-4 property prior to year-end. The Company
looks forward to expanding its water disposal program throughout
its operations in 2018.
Paul Baay, President and Chief Executive Officer, commented:
"Corporate social responsibility is very important to Touchstone
and two of the major items we focus on are the environment and the
health of our employees and their families. The Fyzabad water
injection project marks our first steps towards a goal of zero
surface water release by the end of 2019 and shows our dedication
to being a local leader in environmental stewardship."
For further information, please contact:
Touchstone Exploration Inc.
Mr. Paul Baay, President and Chief Executive Officer Tel: +1
(403) 750-4487
Mr. James Shipka, Chief Operating Officer
www.touchstoneexploration.com
Shore Capital (Nominated Advisor and Joint Broker)
Nominated Adviser: Edward Mansfield / Mark Percy Tel: +44 (0) 20
7408 4090
Corporate Broking: Jerry Keen
GMP FirstEnergy (Joint Broker)
Jonathan Wright / Hugh Sanderson Tel: +44 (0) 207448 0200
Camarco (Financial PR)
Nick Hennis / Jane Glover / Billy Clegg Tel: +44 (0) 203 757
4980
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 current
field estimated production, and the potential undertaking, timing
and costs of future well drilling and water disposal operations.
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.
Competent Persons Statement
In accordance with the AIM Rules for Companies, 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 and is a member of The Canadian Society of Petroleum
Geologist and The Geological Society of Trinidad and Tobago. 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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