TIDMTXP
RNS Number : 9046W
Touchstone Exploration Inc.
16 December 2019
TOUCHSTONE ANNOUNCES SIGNIFICANT OIL DISCOVERY AT CASCADURA
CALGARY, ALBERTA (December 16, 2019) - Touchstone Exploration
Inc. ("Touchstone", "we", "our", "us" or the "Company") (TSX, LSE:
TXP) announces that the Company has made a significant crude oil
discovery with the Cascadura-1ST1 well on the Ortoire exploration
block, onshore in the Republic of Trinidad and Tobago.
HIGHLIGHTS
-- Cascadura-1ST1 cased hole wireline logs indicated significant
prospective oil pay totaling 1,037 feet from 1,374 feet of gross
sand.
-- 80 net feet of oil pay was encountered in the regional Lower
Cruse sands at measured depths between 1,030 and 2,134 feet.
-- 180 net feet of oil pay was encountered in an Upper Herrera
Gr7c thrust sheet at measured depths between 4,198 and 4,994 feet.
These sands were not previously encountered in any offset wells in
the area.
-- 600 net feet of oil pay was encountered in a Middle Herrera
Gr7c thrust sheet at measured depths between 5,516 and 6,162 feet.
These sands were also not reported in any offset wells previously
drilled in the area.
-- 177 net feet of oil pay was encountered in a Lower Herrera
Gr7a thrust sheet at measured depths between 6,162 and 6,350 feet,
which were one of the Company's targeted sands as identified in the
offsetting well.
The Company expects to complete and test the Cascadura-1ST1 well
in the first quarter of 2020. Cascadura is the second prospect of
four on the Ortoire block with initial test results at COHO-1
previously released by the Company on November 18, 2019.
Paul R. Baay, President and Chief Executive Officer,
commented:
"The well results far exceed any pre-drill expectations. This
well is not only a significant discovery and milestone for
Touchstone, but we believe it also establishes a new development
stage for onshore drilling in Trinidad. In the new year, we expect
to test each zone independently in order to better understand the
economic potential of the prospective oil sands, and if the
findings are positive, it will set up an expansive development
drilling program in the area."
Cascadura Results
As previously reported, the Cascadura-1 exploration well
(Touchstone 80% working interest operator, Heritage Petroleum
Company Limited 20% working interest) was spud on October 4, 2019
using Well Services Petroleum Ltd. Rig #80. After encountering
mechanical issues with the drilling rig, the well was sidetracked
beneath surface casing and was drilled to a total measured depth of
6,350 feet (6,100 feet true vertical depth) on December 9,
2019.
The well was originally targeted to be drilled to 8,150 feet
however, while drilling the well, we encountered several distinct
high-pressure hydrocarbon kicks that were controlled through the
use of high-weight drilling fluid and pressure control. For safety
reasons, the Company decided to cease drilling operations and case
the well to preserve the significant oil saturated sand reservoirs
which had been encountered to total depth. As a result of the high
pressures and mud weights we were unable to use a conventional open
hole logging tool; Schlumberger was on site on December 12 and
completed cased hole logging operations using their Pulsed Neutron
Extreme tool on December 15, 2019. All information reported herein
was based on cased hole logging data which correlated with drilling
samples.
The Cascadura-1ST1 cased hole well logs and drilling samples
indicated oil pay in the regional Lower Cruse Formation as well as
three significant oil-bearing packages in the Herrera member of the
Mid-Miocene aged Cipero formation. While drilling the surface and
intermediate sections of the well, several oil bearing sands in the
Lower Cruse formation were encountered. A total of 220 gross (80
net) feet of prospective pay was logged at depths between 1,030 and
2,134 feet. These sands correlate to sands observed in the offset
BW-5 well but they were wet in the structurally lower offset. The
Lower Cruse Formation was not considered to be a target in the
Cascadura prospect and the Company will evaluate the potential of
these secondary sands at a future date.
The primary target at Cascadura were the turbiditic Herrera
sands and the Cascadura-1ST1 well encountered a total of 1,154
gross sand in the Herrara of which 957 net feet is interpreted to
be oil bearing. These sand packages appear to occur in unique and
separate fault sheets. 320 gross feet of Herrera Gr7c sands were
encountered in the upper thrust sheet with 180 net feet bearing oil
at depths between 4,198 and 4,994 feet. An additional 646 gross
feet of Herrera Gr7c sands were identified in the middle thrust
sheet, with 600 net feet of oil-bearing sands found at depths
between 5,516 and 6,162 feet. The sands found in the upper and
middle thrust sheets do not appear to correlate to any known
historical well data in the area. In the lower thrust sheet, which
was a primary target zone, logging and drill sample results
indicated the presence of 188 gross feet of Herrera Gr7a sands with
177 net feet identified as oil-bearing. These sands were found at
depths between 6,162 and 6,350 feet and correlated to a sand
package which was present in the offsetting BW-5 well originally
drilled in 1958. The Cascadura well is calculated to be 200 feet
up-structure from the original BW-5 well.
In the first quarter of 2020, the Company expects to initiate a
comprehensive completion and testing plan to evaluate the economic
potential of the prospective oil sands.
The Cascadura-1ST1 well is the second 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.
Coho-1
The company will be providing further details on the Coho-1
testing and pressure data results prior to the end of the week as
the data is currently being analysed by the Company's independent
engineering firm.
Broker Update
GMP FirstEnergy is no longer the Company's joint broker. Shore
Capital Stockbrokers Limited is currently the Company's sole
broker.
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 the
quality and quantity of prospective hydrocarbon accumulations; the
Company's exploration plans and strategies, including with respect
to future production testing and the timing thereof; and the
sufficiency of resources and available financing to fund future
exploration testing 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 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.
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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