TIDMTXP
RNS Number : 3685I
Touchstone Exploration Inc.
08 August 2019
SPUDDING OF THE COHO-1 EXPLORATION WELL, OPERATIONAL UPDATE AND
NOTICE OF INTERIM RESULTS
Commencement of the drilling programme at Ortoire
Calgary, Alberta - August 8, 2019 - Touchstone Exploration Inc.
("Touchstone" or the "Company") (TSX / LSE: TXP) announces that
drilling operations have commenced with the spudding of the first
exploration well on the Ortoire block. The Company also provides an
operational update and a date for the release of interim
results.
Highlights
-- Spudded Coho-1, the Company's first exploratory well on its
Ortoire property, on August 7, 2019.
-- Achieved crude oil sales of 1,768 barrels per day ("bbls/d")
and 1,944 bbls/d for the three and six months ended June 30, 2019,
respectively, representing increases of 3% and 19% relative to the
prior year comparative periods.
-- Delivered an average of approximately 1,829 bbls/d of field
estimated crude oil production through the first six days of August
2019.
-- Received regulatory approval to reinject produced water from
four of our producing properties.
Drilling Operations
Touchstone spudded the Coho-1 exploration well on the Ortoire
exploration block on August 7, 2019 using Well Services rig #80.
The Coho-1 well is targeting gas prospects in the Herrera formation
at depths between 5,200 and 8,500 feet. The well offsets the
Corosan-1 well drilled by Vintage Petroleum Inc. in 2001.
Touchstone's Coho-1 well is targeting the same zones tested in the
Corosan-1 well in an up-dip location and the well is also expected
to penetrate a second and previously untested thrust sheet that the
Company deems prospective based on 3D seismic and offset production
records. The Coho-1 well is expected to be drilled to a total
measured depth of 8,545 feet at an estimated cost of approximately
US$3 million. Drilling is anticipated to take approximately 28 days
and the Company will make a further announcement once the well is
drilled and logged. Following rig release, we will utilize a
smaller service rig to test the well. Testing is anticipated to
take up to 30 days as a full flow and build-up is planned to be
completed on each zone.
The Coho-1 well is the first of four earning exploration wells
under Touchstone's Ortoire Exploration and Production Licence. The
Company has an 80% working interest in the well but is responsible
for 100% of the drilling, completion and testing costs associated
with the well. Heritage Petroleum Company Limited holds the
remaining 20% working interest.
Touchstone has no Reserves associated with this well location
included in the Company's December 31, 2018 Reserves Report. An
independent prospect evaluation review prepared by GLJ Petroleum
Consultants Ltd. dated January 16, 2019 and effective December 31,
2018 estimated 2,058 thousand barrels of oil equivalent (best
estimate) of unrisked Contingent Resources (Development Pending)
and 1,190 thousand barrels of oil equivalent (best estimate) of
unrisked Prospective Resources (Prospect) for the Company's 80%
working interest in the well. Please refer to Touchstone's January
17, 2019 announcement titled "Touchstone Announces Ortoire
Independent Prospect Evaluation" for further information,
definitions and advisories regarding the resources other than
reserves associated with prospects evaluated on the Ortoire
exploration block.
Production
After a strong 2019 first quarter of production buoyed by flush
volumes from the 2018 drilling programme, the Company embarked upon
a well optimization programme which spanned the majority of the
second quarter of 2019. The programme focused on converting flowing
wells to pumping wells as volumes declined, equipping certain wells
with capillary strings to combat wax production and to extend
run-times and the recompletion of low rate producers. As a result
of these initiatives, various wells and associated production were
off-line during the second quarter. Additionally, mechanical issues
with a bottom hole assembly in the Company's CO-372 well resulted
in nil production in the second quarter.
As a result, the Company averaged 1,768 bbls/d of crude oil
sales in the second quarter of 2019 and 1,944 bbls/d of crude oil
sales during the six months ending June 30, 2019. Field estimated
production through the first six days of August 2019 has averaged
approximately 1,829 bbls/d, which the Company anticipates
maintaining in the third quarter of 2019 through further well
optimization and recompletions.
Water Disposal
The Company has commenced transportation of all produced water
from its Barrackpore, San Francique and Palo Seco properties to the
recently commissioned water disposal facility on our Fyzabad block.
We have also completed an initial injectivity test on our WD-8
block and will now begin a test period where substantially all
produced water originating from the property will be disposed.
These are key environmental milestones as we have undertaken to
eliminate all surface water release by the end of 2019.
Paul R. Baay, President and Chief Executive Officer,
commented:
"It is very exciting to commence drilling in Ortoire at our
Coho-1 prospect. This is a significant milestone for Touchstone as
we begin drilling the prospective exploration wells. We look
forward to sharing the results of the wells with our shareholders
throughout this potentially transformational period. The
exploration programme has been a priority for 2019, but it is
important that we continue to see annual production growth from our
current producing assets. We are currently prioritizing our
development drilling locations and will continue to focus on
maintaining base production. While fostering a safe work
environment we intend to further enhance our operations through
various initiatives including our water disposal programme."
Notice of Results
The Company expects to release its unaudited interim results for
the three and six months ended June 30, 2019 on August 14,
2019.
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".
For Further Information:
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) 207 408 4090
Corporate Broking: Jerry Keen
GMP FirstEnergy (Joint Broker)
Jonathan Wright / Hugh Sanderson Tel: +44 (0) 207 448 0200
Camarco (Financial PR) Tel: +44 (0) 203 781 8330
Nick Hennis / Jane Glover
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 current
and future field estimated crude oil production volumes, the
Company's exploration and development plans and strategies, the
potential undertaking, timing, locations, production rates and
costs of future well drilling, completion and exploration
activities, and the sufficiency of resources and available
financing to fund future exploration, drilling and 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 December 31, 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.
Statements relating to reserves and resources are by their
nature forward-looking statements, as they involve the implied
assessment, based on certain estimates and assumptions, that the
resources described exist in the quantities predicted or estimated,
and can be profitably produced in the future. The recovery
estimates provided herein are estimates only, and there is no
guarantee that the estimated resources will be recovered.
Consequently, actual results may differ materially from those
anticipated in the forward-looking statements.
Resource Definitions
"Contingent Resources" are those quantities of petroleum
estimated, as of a given date, to be potentially recoverable from
known accumulations using established technology or technology
under development, but which are not currently considered to be
commercially recoverable due to one or more contingencies.
"Prospective Resources" are those quantities of petroleum
estimated, as of a given date, to be potentially recoverable from
undiscovered accumulations by application of future development
projects. Prospective Resources have both an associated chance of
discovery and a chance of development.
Resources other than Reserves
In the case of Contingent Resources (Development Pending), it is
important to note that there is uncertainty that they will be
commercially viable to produce any portion of the resources. In the
case of Prospective Resources (Prospect), it is important to note
that there is no certainty that any portion of the resources will
be discovered. If discovered, there is no certainty that they will
be commercially viable to produce any portion of the resources. In
addition, "best estimate" means that there is a 50% chance that the
estimated quantity will be equalled or exceeded.
Refer to Touchstone's January 17, 2019 announcement titled
"Touchstone Announces Ortoire Independent Prospect Evaluation" for
further information, definitions and advisories regarding the
resources other than reserves associated with prospects evaluated
on the Ortoire exploration block.
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 of 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
UPDGMGGRVRFGLZG
(END) Dow Jones Newswires
August 08, 2019 02:07 ET (06:07 GMT)
Grafico Azioni Touchstone Exploration (LSE:TXP)
Storico
Da Dic 2020 a Gen 2021
Grafico Azioni Touchstone Exploration (LSE:TXP)
Storico
Da Gen 2020 a Gen 2021
