TIDMTXP
RNS Number : 4036X
Touchstone Exploration Inc.
19 December 2019
TOUCHSTONE COHO-1 FINAL ANALYSIS ESTIMATES AOF RATE OF 46.0
MMCFD
CALGARY, ALBERTA (December 19, 2019) - Touchstone Exploration
Inc. ("Touchstone", "we", "our", "us" or the "Company") (TSX, LSE:
TXP) is pleased to announce the final production test results for
the Coho-1 well on the Ortoire exploration block, onshore in the
Republic of Trinidad and Tobago (Touchstone 80% working interest
operator, Heritage Petroleum Company Limited 20% working interest).
The final test results have been reviewed by the Company's
independent reserves and resources evaluator, GLJ Petroleum
Consultants Ltd. ("GLJ"), and the following information is intended
to complement initial test results previously released by the
Company on November 18, 2019.
Highlights
-- Flow and build-up test results suggest an Absolute Open Flow
("AOF") rate of 46.0 million cubic feet per day ("MMCFD")
(approximately 7,671 barrels of oil equivalent per day
("boe/d")).
-- Modelling supports initial production rates of 10 to 12 MMCFD
per day (1,667 to 2,000 boe/d) gross, 8.0 to 9.6 MMCFD (1,333 to
1,600 boe/d) net.
-- Gas analysis indicated pure, sweet, dry gas with 98.7%
methane, no hydrogen sulfide and negligible associated liquids.
-- No physical subsurface boundaries were observed during the test period
-- Final 24-hour extended flow test rate was confirmed at 11.6
MMCFD (1,925 boe/d) at an average sandface drawdown of only
8.8%.
James Shipka, Chief Operating Officer, commented:
"Final testing of the Coho-1 exploration well displayed natural
gas rates that greatly exceeded the Company's expectations and is
expected to materially contribute to our near-term growth. With
production testing and analysis completed and verified
independently, the Company has a clear indication of the potential
of Coho-1 and is moving forward to bring the well on stream in the
first half of 2020."
As previously announced, the Coho-1 exploration well encountered
material volumes of natural gas in two sand packages in the Herrera
Gr7b formation. Production testing commenced on November 16, 2019,
with flow tests spanning a total of 45.3 hours comprised of an
initial clean-up flow period followed by an initial shut-in period
and a four-step rate test, including a final extended flow test
over a 24-hour period. Peak rates during flow testing were 19.8
MMCFD (3,300 boe/d) with an average rate of 11.6 MMCFD (1,925
boe/d) recorded during the final 24-hour extended flow test. A
total of 17.2 million cubic feet of gas (2,867 barrels of oil
equivalent) was produced during testing with 445 barrels of
associated water including c. 37 barrels of load fluid. Natural gas
rates observed during testing were significantly higher than the
Company's pre-test expectation of 8 MMCFD while water rates were
significantly lower. Compositional analysis of the produced gas
indicated 98.7% pure methane, with no hydrogen sulfide content,
negligible associated measurable liquids and no sand or
sediment.
Following flow testing, the well was shut in for an extended
pressure build-up survey which concluded on December 6, 2019.
During the build-up period, the Company observed bottom hole
pressures returning to pre-test levels of approximately 3,830 psi.
Flow and pressure build-up measurements were analyzed by GLJ,
resulting in an estimated AOF rate of 46 MMCFD (7,671 boe/d).
Analysis of the data supports an initial gross production rate of
10 to 12 MMCFD (net production rate of 8.0 to 9.6 MMCFD or 1,333 to
1,600 boe/d respectively). No physical boundaries were observed
during the pressure build-up test period and no skin damage was
visible at the sandface.
Touchstone Exploration Inc.
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".
For further information about Touchstone, please visit our
website at www.touchstoneexploration.com or contact:
Touchstone Exploration Inc.
Mr. Paul Baay, President and Chief Executive Officer Tel: +1
(403) 750-4487
Mr. James Shipka, Chief Operating Officer
Shore Capital (Nominated Advisor and Broker)
Nominated Advisor: Edward Mansfield / Daniel Bush Tel: +44 (0)
207 408 4090
Corporate Broking: Jerry Keen
Camarco (Financial PR)
Nick Hennis / Jane Glover Tel: +44 (0) 203 781 8330
Advisories
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 with respect to well
test results; the Company's exploration plans and strategies,
including with respect to the anticipated development and timing of
the Coho-1 well and ultimate production therefrom; and the
sufficiency of resources and available financing to fund future
completion 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 2018 Annual
Information Form dated March 26, 2019 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.
Oil and Gas Matters
References in this announcement to production test rates and
initial flow rates are useful in confirming the presence of
hydrocarbons; however, such rates are not determinative of the
rates at which such wells will commence production and decline
thereafter and are not necessarily indicative of long-term
performance or of ultimate recovery. While encouraging, readers are
cautioned not to place reliance on such rates in calculating the
aggregate production for the Company.
Oil and Gas Measures
Where applicable, natural gas has been converted to barrels of
oil equivalent based on six thousand cubic feet to one barrel of
oil. The barrel of oil equivalent rate is based on an energy
equivalent conversion method primarily applicable at the burner
tip, and given that the value ratio based on the current price of
crude oil as compared to natural gas is significantly different
than the energy equivalency of the 6:1 conversion ratio, utilizing
the 6:1 conversion ratio may be misleading as an indication of
value.
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 Fellow of the Geological Society of London (BGS)
as well as 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 30 years of oil and gas exploration and development
experience.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
DRLEAFAPFDPNFAF
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