TIDMTXP
RNS Number : 0381C
Touchstone Exploration Inc.
14 October 2020
TOUCHSTONE ANNOUNCES SIGNIFICANT NATURAL GAS DISCOVERY AT
CHINOOK
CALGARY, ALBERTA (October 14, 2020) - Touchstone Exploration
Inc. ("Touchstone", "we", "our", "us" or the "Company") (TSX, LSE:
TXP) reports that the Company has completed drilling the Chinook-1
exploration 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)
and is pleased to announce that the well encountered significant
hydrocarbon accumulations based on wireline log data. Chinook-1 is
the Company's third exploration well drilled on the Ortoire
exploration block and the third hydrocarbon discovery since
commencing the Ortoire exploration drilling program in August
2019.
Highlights
-- Chinook-1 was drilled to a total depth of 10,039 feet to test
a separate structural formation 1.5 kilometres south from the
successful Cascadura gas discovery.
-- Wireline logs indicated significant natural gas pay totalling
approximately 589 net feet in three unique thrust sheets in the
Herrera sands.
-- Additional natural gas pay of approximately 20 net feet was
encountered in the shallower Cruse formation.
-- Completion and testing of the well is expected to be
undertaken during the first quarter of 2021.
-- We expect the drilling rig to mobilize to our Cascadura Deep
location prior to the end of the month.
Drilling samples and open hole wireline logs indicated that the
Chinook-1 well encountered a significant Herrera turbidite package
with a total thickness of 2,000 feet containing over 1,480 feet of
sand. Open hole well logs and drilling samples indicated that these
sands contain an aggregate 589 net feet of natural gas pay in three
unique thrust sheets. The well encountered 341 net feet of
hydrocarbon pay in the Gr7a section of the overthrust Herrera sands
at measured depths between 8,154 and 8,710 feet. The overthrust
Gr7a sands were the Company's primary target originally identified
in the offsetting BW-7X well. 180 net feet of hydrocarbon pay was
identified in the Gr7bc section of the intermediate Herrera sands
at measured depths between 8,850 and 9,750 feet. The sands
encountered in this thrust sheet also correlate to the offsetting
BW-7X well and were the Company's secondary target. 68 net feet of
hydrocarbon pay was identified in the Gr7bc section in a subthrust
sheet of Herrera sands at measured depths between 9,750 and 10,003
feet. This represents a previously unknown thrust sheet as no sands
of this depth were previously penetrated in the offsetting
wells.
In addition to the Herrera sandstones and the associated
hydrocarbon discoveries, an additional 20 net feet of hydrocarbon
pay was identified in the Cruse formation at depths between 2,996
and 3,021 feet. This represents a new discovery in the area that
was not observed in offsetting well data.
In the first quarter of 2021, the Company expects to initiate a
comprehensive completion and testing plan to evaluate the economic
potential of the hydrocarbon sands. We expect the drilling rig to
move to the Cascadura Deep location prior to the end of the
month.
Paul R. Baay, President and Chief Executive Officer,
commented:
"The results from the Chinook well exceeded pre-drill
expectations. The successful exploration well further confirms the
geological model developed by our team and is expected to provide
significant development opportunities in the Chinook area. With
both the shallow and deepest zones being new to the area, it also
identified future exploration opportunities. The Company's focus is
now on the drilling of the Cascadura Deep exploration well, which
will impact the timing of Chinook-1 production testing operations
to ensure the safety of operations. I would like to thank our
contractors, suppliers, government officials and our staff who have
worked together to keep us moving forward during these challenging
times."
James Shipka, Chief Operating Officer, stated:
" We continue to see the significant and growing potential of
the Ortoire exploration block with Chinook-1 encountering over
2,000 feet of turbidite deposits, nearly 1,500 feet of developed
sands and a total of over 600 feet of natural gas pay. At a depth
of 10,039 feet, Chinook-1 is one of the deepest wells drilled
onshore Trinidad in almost a decade and verifies the evolution of
our drilling practices since commencing our exploration program.
For Chinook-1, we employed a synthetic oil-based mud system that
assisted in drilling while reducing formation damage and
incorporated a top drive onto the drilling rig to aid in drilling
to greater depths. We intend to replicate these drilling practices
moving forward given Chinook-1 demonstrated our ability to
successfully conduct complex operations in a safe manner while
strictly adhering to restrictions imposed during the ongoing COVID
19 pandemic."
Chinook-1 Drilling
The Chinook-1 exploration well was spud on August 13, 2020 using
Well Services Petroleum Ltd. Rig #80. The well was designed to
explore the potential for a thick section of Herrera sandstones in
the SW-NE trending Chinook anticline, which is located
approximately 1.5 kilometres south of the Cascadura anticline and
our associated gas discovery. The primary target of the Chinook
well was the Gr7a overthrust Herrera sands near the crest of the
structure at an approximate measured depth of 8,100 feet, which is
capped by thick Karamat shales. The well was intended to further
evaluate a secondary target of stacked or repeated intervals of
Gr7bc intermediate Herrera sands from approximately 8,800 feet to a
planned total depth of 9,870 feet. The well was drilled to a total
measured depth of 10,039 feet (true vertical depth of 9,776 feet)
on October 11, 2020 and was extended past its originally planned
depth due to hydrocarbon shows at 9,820 feet.
Despite being spud a mere 1.5 kilometres south of Cascadura, the
Chinook anticline is separate from, and distinctly different than
the Cascadura anticline to the north. The structural mapping on the
Herrera interval reveals that Cascadura and Chinook are two
anticlines converging toward each other, with Cascadura being a
tighter but heavily stacked fold, thereby making it a taller
structure, while Chinook is interpreted to be a simpler, broader
fold.
The Chinook-1 well is the third of a four well exploration
commitment under Touchstone's Ortoire Exploration and Production
Licence. The Company has an 80% working interest in the licence but
is responsible for 100% of the drilling, completion and testing
costs associated with the initial four exploration wells. Heritage
Petroleum Company Limited holds the remaining 20% working interest.
Touchstone has no reserves associated with the Chinook-1 well
included in the Company's December 31, 2019 independent reserves
report.
Further testing is required to determine the economic viability
and potential of the well, and the Company plans to commence
completion and production testing operations during the first
quarter of 2021.
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 Joint Broker)
Nominated Advisor: Edward Mansfield / Daniel Bush / Michael McGloin Tel: +44 (0) 207 408 4090
Corporate Broking: Jerry Keen
Canaccord Genuity (Joint Broker)
Adam James / Thomas Diehl Tel: +44 (0) 207 523 8000
Camarco (Financial PR)
Nick Hennis / Billy Clegg 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 relating to the
quality and quantity of prospective hydrocarbon accumulations ; the
Company's exploration plans and strategies , including with respect
to future well drilling, well completions and production testing,
the timing and the potential commercial production viability
thereof; and the sufficiency of resources and available financing
to fund future exploration drilling, completions and production
testing 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 2019 Annual
Information Form dated March 25, 2020 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 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.
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