TIDMTXP
RNS Number : 1171E
Touchstone Exploration Inc.
07 February 2018
COMMENCEMENT OF 10 WELL DRILL PROGRAM & FINANCIAL
HEDGING
Calgary, Alberta - February 7, 2018 - Touchstone Exploration
Inc. ("Touchstone" or the "Company") (TSX / LSE: TXP) announces the
commencement of its ten well onshore drilling program in the
Republic of Trinidad and Tobago which is expected to be fully
funded by current cash balances and cash flows from operations.
The Company spudded the first well of the program on its Grand
Ravine WD-4 block on February 3, 2018. The PS-602 well is being
drilled to an approximate total depth of 5,500 feet, targeting the
Upper and Lower Forest formations. The Forest sands are the main
producing formation of the property, and the well is targeting a
significant undrained portion of the block identified by
surrounding well logs and production. The well is currently at
1,125 feet and the Company is setting surface casing. It is
anticipated to reach total depth within the next ten days. The well
is expected to be placed on production within 14 days from
completion of logging and casing. This well will satisfy the
remaining minimum work obligations stipulated under the WD-4 Lease
Operating Agreement ("LOA").
In conjunction with the spudding of the first well, the Company
is coordinating final governmental inspections of a second drilling
rig that is anticipated to commence drilling operations on the
Forest Reserve WD-8 block prior to the end of February. The second
rig is expected to drill two wells on WD-8 from two separate
locations. Both wells will target the Cruse and Forest formations
in an area that has significantly less drilling density than much
of the property. While these two wells are being drilled from
individual surface locations, the Company has designed each surface
location to accommodate future drilling if the results justify
further development.
The Company has also begun constructing a multi-well pad on its
Coora 2 property that will provide the surface location for two
wells to be drilled. These wells will target the Cruse and Forest
formations at depths up to 4,500 feet. The wells are follow-ups to
the successful 2014 drilling program in the area where three wells
were drilled. Upon completion of these two wells, all Coora 2 LOA
minimum work obligations will be satisfied.
Following the completion of the two wells in Coora 2, the
Company expects to drill two wells on its Coora 1 block from a
single surface location as follow-ups to the two successful wells
drilled in 2017. One of the two wells will be targeting uphole
zones that are identified in the CO-369 well that cannot currently
be produced from the same well bore under existing regulations. As
the CO-369 well continues to produce at approximately 200 barrels
of oil per day, the Company will accelerate the recovery of
unbooked uphole sands through the drilling of the offsetting
development well. The second well on the location will be targeting
a deeper horizon identified in a separate fault. These wells are
beyond the commitments stipulated under the Coora 2 LOA as all
minimum work obligations were previously met by drilling and
workovers completed in 2017.
Further, the Company is working on submitting the required
documents for the final three locations that are expecting to be
drilled on the Fyzabad and WD-4 blocks. The Company is targeting to
complete the 10 well program by August of 2018.
Paul Baay, President and Chief Executive Officer, commented:
"The commencement of our ten well drilling program is further
evidence of Touchstone transitioning its extensive reserves into
production and cashflow. It is extremely pleasing to be able to
update the market, and our valued shareholders, with more positive
news that we are delivering against our ambitious growth plans. If
conditions allow, we hope to drill additional wells prior to
year-end."
Financial Hedging
On January 23, 2018, the Company purchased US$55.00 Brent ICE
crude oil put options effective March 1, 2018 through December 31,
2018. The Company protected 500 barrels of day of production during
this period, representing approximately 33% of current field
estimated production. Touchstone will continue to monitor the
forward commodity price curve and opportunistically hedge future
production volumes to mitigate possible commodity price volatility
and protect the funding of the approved drilling program.
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,
locations and funding of future well drilling. 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.
Contact
Mr. Paul Baay, President and Chief Executive Officer; or
Mr. James Shipka, Chief Operating Officer
Telephone: 403.750.4487
www.touchstoneexploration.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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