TIDMTXP
RNS Number : 9259N
Touchstone Exploration Inc.
14 May 2018
OPERATIONAL AND DRILLING UPDATE
Calgary, Alberta - May 14, 2018 - Touchstone Exploration Inc.
("Touchstone" or the "Company") (TSX / LSE: TXP) announces an
operational and drilling update.
Highlights
-- Achieved first quarter 2018 average crude oil production of
1,543 barrels per day ("bbls/d"), a 21% increase relative to the
1,280 bbls/d produced in the prior year comparative quarter.
-- Delivered April 2018 average production of 1,669 bbls/d.
-- Current field estimated average production is approximately
1,772 bbls/d (based on the previous seven-day average).
-- Drilled and cased the first five wells of the 2018 drilling
program, of which two wells have been completed and are currently
on production. The remaining three wells are expected to come on
stream in the second quarter of 2018.
-- Satisfied all minimum work obligations stipulated in the
Coora 1, Coora 2, and WD-4 license agreements and is current on its
WD-8 license obligations.
Production
Grand Ravine WD-4 Block
The PS-602 well has been producing for 67 days from 80 feet of
net oil sands in a secondary horizon of the Lower Forest formation.
The well has produced 3,107 barrels of oil to date, representing an
average of 46 bbls/d. The Company is speeding up the pump to
increase productivity following which an additional 40 feet of
perforations are expected to be added to the zone. The well is
currently producing at a field estimated rate of 50 bbls/d.
Drilling
Forest Reserve WD-8
Touchstone completed the drilling of two wells in the WD-8 block
targeting oil reserves in the relatively undeveloped northern
portion of the property. The two wells were drilled into separate
fault blocks and although offset by legacy wells, represented a
significant step-out from the Company's previous drilling in the
area.
The FR-1792 well was spud on March 16, 2018 and reached a total
depth of 5,378 feet. The rig was released on April 4, 2018, and the
well was cased for oil production. Wireline logs indicated the
presence of approximately 157 feet of net oil pay as follows:
Forest formation 108 feet
Cruse formation 49 feet
Total (net) oil pay 157 feet
The initial completion of FR-1792 was performed in two stages to
gather pressure and production data in the Cruse formation and the
well was placed on production on May 10, 2018. The well is
currently flowing clean, 28deg API oil up casing from a 20-foot
thick sand package. The Company will provide a production update
once rates have stabilized after 60 days.
The FR-1793 well was spud on April 11, 2018 and was drilled to a
total depth of 3,820 feet on May 2, 2018. Wireline logs indicated
the presence of approximately 194 feet of net oil pay as
follows:
Upper Forest formation 36 feet
Cruse formation 158 feet
Total (net) oil pay 194 feet
The FR-1793 well was completed on May 12, 2018 and is expected
to be placed on production within the next seven days.
With the drilling of the two wells, Touchstone is current with
respect to its minimum work obligations specified in the WD-8 block
Lease Operating Agreement ("LOA"). The Company plans to drill its
final obligation well in the third quarter of 2018.
Coora 2 Block
Touchstone successfully drilled two wells on its Coora 2
property from a single surface location. The wells were drilled to
develop crude oil reserves trapped in separate fault blocks
offsetting wells originally drilled in the 1940s.
The CO-370 well spudded on April 8, 2018 and reached a total
depth of 3,820 feet. The rig was released on April 17, 2018, and
the well was cased for oil production. Wireline logs indicated the
presence of approximately 227 feet of net oil pay as follows:
Forest formation 106 feet
Cruse formation 121 feet
Total (net) oil pay 227 feet
CO-371 was spud on April 23, 2018, and the well reached a total
depth of 4,530 feet on May 8, 2018. The well was drilled to access
hydrocarbons in a separate, adjoining fault block to the CO-370
well. Wireline logs indicated the presence of approximately 405
feet of net oil pay as follows:
Forest formation 125 feet
Cruse formation 280 feet
Total (net) oil pay 405 feet
The Company has cased CO-371 for oil production and the drilling
rig was released on May 11, 2018. Touchstone anticipates commencing
initial completion operations on both wells following the
completion of work on FR-1793. With the drilling of the CO-370 and
CO-371 wells, the Company has satisfied its Coora 2 block LOA
minimum work obligations through 2020.
Coora 1 Block
The Company is currently preparing the common surface location
for the sixth and seventh wells of the 2018 drilling campaign. The
two wells are follow-up locations to Touchstone's successful CO-368
and CO-369 wells drilled in 2017. Drilling is anticipated to resume
in approximately three weeks.
Paul Baay, President and Chief Executive Officer, commented:
"The first five wells of 2018 have been successfully drilled.
With the promising net pay indicated on the logs, we expect to have
the potential for significant production coming on stream as the
wells are completed. We are excited to see the stabilised
production results from these wells as we accelerate to our target
of 2,000 barrels per day. We are pleased with the momentum achieved
with the 2018 drilling campaign to date, and increased realized oil
pricing has allowed us to be more profitable on a per barrel
basis."
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 Advisor: Edward Mansfield / Mark Percy / Daniel Bush
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, the potential undertaking, timing,
locations and costs of future well drilling and completion
activities, the estimated amount and timing of incremental
production and profitability from well drilling, the quality and
quantity of prospective hydrocarbon accumulations as indicated by
wireline logs, and sufficiency of resources to fund future drilling
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 December 31, 2017 Annual
Information Form dated March 26, 2018 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
Geologists 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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