TIDMTXP
RNS Number : 0861U
Touchstone Exploration Inc.
31 March 2021
TOUCHSTONE UPDATES CHINOOK AND CASCADURA DEEP TESTINGS
CALGARY, ALBERTA (March 31, 2021) - Touchstone Exploration Inc.
( " Touchstone ", "we", "our", "us" or the " Company " ) (TSX, LSE:
TXP) provides an update regarding exploration operations on the
Ortoire block, onshore Trinidad and Tobago (Touchstone 80% working
interest operator, Heritage Petroleum Company Limited 20% working
interest).
Highlights
-- Completed and tested the third interval at Chinook-1
encountering 35 degree API gravity crude oil; further evaluation is
required to determine commerciality.
-- All three Herrera thrust sheets in Chinook-1 encountered
light oil indicating the structure is predominantly oil
charged.
-- Chinook-1 will be placed on pump for an extended production
test to evaluate the reservoir and guide future development.
-- The service rig is on location at Cascadura Deep-1 to
complete the lowermost gas zone in the Herrera overthrust sheet,
which is scheduled to be perforated within a few days.
Chinook-1 Production Testing
Touchstone is currently evaluating the third formation test at
Chinook-1, having completed the overthrust Herrera sheet in the
well on March 25, 2021, perforating 115 feet of the formation at
depths between 8,320 and 8,435 feet. The well accumulated pressure
to 2,100 psi at surface immediately after being completed, and flow
back testing commenced on March 27, 2021. The well recovered load
fluid with minor amounts of 35 degree API gravity oil and formation
water. Low flow back rates indicate that an artificial lift is
required to determine the wells' production potential. By putting
the well on pump, the Company can evaluate the deliverability of
the zone and assess possible formation damage that may have
occurred during drilling. Touchstone will commence installation of
the pumping assembly when the service rig has completed current
operations at Cascadura Deep-1.
Testing to date indicates the Chinook-1 well is in an oil window
of the Herrera fairway. Over the course of the next few months, the
Company will form a development plan for the oil encountered in the
exploration well with the focus on identifying locations in the
intermediate and overthrust Herrera sand sheets. Oil production
from the Herrera thrust sheets is common in Trinidad along the
Herrera fairway. The Penal-Barrackpore Herrera oil pools have
cumulative production of over 80 million barrels since their
discovery in the 1960s.
Following the extended oil test, the Company may complete an
uphole shallow gas interval in the Cruse formation or test a
Karamat shale gas prospect that was encountered while drilling.
Paul Baay, President and Chief Executive Officer, commented:
" This light oil discovery on the Ortoire property provides
another level of opportunity for the Company and is in line with
our original Chinook exploration model which indicated the target
was oil charged. While some shareholders may be disappointed with
oil findings, it is worth highlighting that our view towards gas
only evolved following our prolific gas discovery at Cascadura,
which is 1.5 kilometres to the north and in a separate geological
structure. The test results at Chinook are a reminder that while
these are independent exploration targets, the Herrera sands have
the potential for gas, light oil, or a combination of hydrocarbons.
We don't believe these results have any correlation to the upcoming
Royston well given the target is a separate structure and in a
different geological position. "
Cascadura Deep-1 Production Testing
The Company is currently preparing to perforate the lowermost
section of the shallow overthrust Herrera sand in Cascadura Deep-1.
After the interval has been perforated, the Company expects to
perform a three-day flow back test followed by a minimum two-week
built-up test. Well test results will be disclosed upon
completion.
The Company completed testing a low resistivity zone in the
intermediate thrust sheet that showed elevated gas readings during
drilling. While indications of hydrocarbons were apparent while
drilling through this secondary interval, wireline logs indicated
low resistivity prompting the Company to test the interval to gain
a further understanding of reservoir characteristics. The primary
purpose of the test was to correlate reservoir salinities with
wireline log responses to define pay intervals during potential
development of the Cascadura Deep-1 structure. As expected, based
upon the low resistivity readings, the tested interval yielded
predominantly water with minor amounts of hydrocarbon emulsion and
was subsequently abandoned.
James Shipka, Chief Operating Officer, commented:
"While we have waited for the required testing equipment to come
available, we took advantage of our time with the two exploration
wells to test a number of different concepts and have added to our
understanding of the Ortoire block. The information gained over the
last three months will be invaluable for progressing our
understanding of potential future locations. In the near term, we
remain focused on our gas test at Cascadura Deep and bringing our
first two wells, Coho-1 and Cascadura-1ST1, onto production.
Further testing at Chinook will continue as necessary to evaluate
the well and determine the best path forward while construction at
Royston continues to move towards a spud date in the middle of the
second quarter. "
Touchstone Exploration Inc.
Touchstone Exploration Inc. is a Calgary, Alberta 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 / Henry Fitzgerald O'Connor / 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 and information (collectively,
"forward-looking statements") within the meaning of applicable
securities laws. Such forward-looking statements include, without
limitation, forecasts, estimates, expectations and objectives for
future operations that are subject to assumptions, risks and
uncertainties, many of which are beyond the control of the Company.
Forward-looking statements are statements that are not historical
facts and are generally, but not always, identified by the words
"expects", "plans", "anticipates", "believes", "intends",
"estimates", "projects", "potential" and similar expressions, or
are events or conditions that "will", "would", "may", "could" or
"should" occur or be achieved.
Forward-looking statements in this announcement may include, but
is not limited to, statements relating to the quality and quantity
of prospective hydrocarbon accumulations; well test results; the
Company's exploration plans and strategies, including anticipated
drilling, production testing, development, tie-in, facilities
construction, and timing thereof . 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 2020 Annual
Information Form dated March 25, 2021 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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