TIDMTXP
RNS Number : 6249L
Touchstone Exploration Inc.
09 September 2019
TOUCHSTONE ANNOUNCES POSITIVE COHO-1 EXPLORATION WELL
RESULTS
Calgary, Alberta - September 9, 2019 - Touchstone Exploration
Inc. ("Touchstone" or the "Company") (TSX / LSE: TXP) announces
that its first exploration well has encountered four zones with
prospective natural gas accumulations on the Ortoire exploration
block, onshore in the Republic of Trinidad and Tobago.
Highlights
-- Coho-1 was drilled to a total depth of 8,560 feet in 28 days
and is currently being cased for further evaluation.
-- Coho-1 well logs indicate significant prospective natural gas
pay in four unique sand packages in the Herrera sands.
-- Upper Herrera Gr7b and Gr7c sands have indications of a total
of 105 feet of net gas pay at measured depths between 5,486 and
7,240 feet.
-- The drilling rig will be moving to the Company's second
exploration well on the Ortoire block.
The Coho-1 exploration well was spud on August 7, 2019 and
reached a total measured depth of 8,560 feet (8,543 feet true
vertical depth) on September 3, 2019 using Well Services Petroleum
Ltd. Rig #80. The well logs indicate four gas bearing packages in
the Herrera member of the Mid-Miocene aged Cipero formation. Based
upon wireline logging, two sand packages with approximately 64 feet
of net gas pay were encountered in the upper Herrera Gr7b section
between 5,486 feet and 5,782 feet. The Gr7b sand packages correlate
to the offsetting Corosan-1 well drilled in 2001, where similar
sands tested natural gas in excess of 8 million cubic feet per day.
Wireline logging also indicated two prospective gas sand packages
in the Herrera Gr7c section between 6,530 and 7,240 feet. These two
sand packages contain a combined 41 feet of probable net gas pay
which was not tested in historical offsetting wells. In addition,
logging identified the presence of oil sands in the lower Herrera
Gr7b repeat section at a depth of 7,788 feet. This lower quality
100-foot thick gross interval does not appear to be commercially
prospective but proves the presence of hydrocarbons in this
previously untested thrust sheet and may de-risk future exploration
opportunities.
The Coho-1 well was drilled on time and within budget, and the
Company is initiating a comprehensive testing plan to evaluate the
economic potential of the prospective gas sands.
Following rig release at Coho-1, Well Services Petroleum Ltd.
Rig #80 will be mobilized to the Cascadura-1 location which is the
second of four initial exploration wells the Company plans to drill
on the Ortoire property. Cascadura-1 is expected to be drilled to a
total dept of 8,190 feet and is targeting two oil zones in the
Herrera sands in a fault block separate from the discovery at
Coho-1.
Paul R. Baay, President and Chief Executive Officer,
commented:
"Although Coho-1 targeted the smallest prospect in our Ortoire
exploration inventory, the initial drilling results represent
significant potential growth for the Company. The presence of
hydrocarbons in the turbidite sands of the Herrera confirms that
our geological model is correct, and our drilling operations
confirm that our team can drill future wells in a safe, timely and
cost-efficient manner. This result gives the Board and Management a
great deal of confidence to move directly to the Cascadura location
which will test a separate structure targeting significant oil
prospects in a similar geological setting."
James Shipka, Chief Operating Officer, stated:
"We are very pleased to have found 105 feet of prospective gas
pay at Coho-1 which we will now evaluate for commercial production.
The well was drilled to evaluate the untested Herrera Gr7 repeat
section and follow up on the offsetting Corosan-1 well which was
never placed on production. The primary objective in Coho-1 was
natural gas but oil noted in the repeat section of the well
confirms the presence of previously unproven hydrocarbons and
confirms the potential for further exploration targets in the lower
Herrera sand sheets within the Ortoire exploration block."
The Coho-1 and Cascadura-1 wells are the first two of four
minimum commitment earning exploration wells 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 Coho-1 and
Cascadura-1 wells as per 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 Coho-1 well (residue
natural gas and natural gas liquids). Further, the evaluation
estimated 944 thousand barrels of crude oil (best estimate) of
unrisked Contingent Resources (Development Pending) for the
Company's 80% working interest in the Cascadura structure.
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 the
quality and quantity of prospective hydrocarbon accumulations; the
Company's exploration plans and strategies, including with respect
to the timing, number, testing, location, depth and targeted
formations of future wells, the rig(s) used to drill them and the
commercial production viability thereof; and the Company's ability
to conduct future operations in safe, timely and cost-efficient
manner. 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.
Statements relating to 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.
Historical Well Production Test Rates
Touchstone has provided historical Corosan-1 well test results
which is "analogous information" as defined in National Instrument
51-101 Standards of Disclosure for Oil and Gas Activities ("NI
51-101"). The historical production test rates disclosed in this
announcement were sourced from third party public data and were not
noted as having been prepared independently or by a qualified
reserves evaluator or auditor (as such terms are defined in NI
51-101) or in accordance with the Canadian Oil and Gas Evaluation
Handbook. This information is relevant to Touchstone as the sand
package identified in the Coho-1 well correlates to the sands noted
in Corosan-1 well wireline logs. Such well test results may not be
indicative of stabilized on-stream production rates, long-term
performance or ultimate recovery associated with the Coho-1
well.
Resources Other Than Reserves
"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.
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.
Please refer to 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 for further information with respect to the Company
independently evaluated contingent and prospective resources,
including details regarding risked estimates. Please also refer to
the Company'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.
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
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September 09, 2019 02:00 ET (06:00 GMT)
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