TIDMTXP
RNS Number : 1744C
Touchstone Exploration Inc.
06 February 2020
CASCADURA WELL TEST CONFIRMS SUBSTANTIAL LIQUIDS RICH GAS
DISCOVERY
CALGARY, ALBERTA (February 6, 2020) - Touchstone Exploration
Inc. ("Touchstone", "we", "our", "us" or the "Company") (TSX, LSE:
TXP) announces that flowback testing of the first stage of the
Cascadura-1ST1 well has been completed, confirming that the well is
a significant liquids rich natural gas discovery.
Highlights
-- Cacadura-1ST1 production testing commenced on February 4,
2020, with the first stage testing the lower most 162 feet of a
total of 777 feet of identified pay in the Herrera formation.
-- Average flowback rate during the final 14-hour test period
was 5,180 barrels of oil equivalent per day ("boe/d"), including
26.9 million cubic feet per day ("MMcf/d") of natural gas and 694
barrels per day ("bbls/d") of natural gas liquids.
-- Peak flowback rate of 5,736 boe/d, including 30.2 MMcf/d of
natural gas and 710 bbls/d of natural gas liquids.
-- A total of 28.6 million cubic feet of gas (4,770 barrels of
oil equivalent) and 680 barrels of natural gas liquids were
produced during the testing period.
-- Field analysis indicated liquids rich gas with no hydrogen sulfide and no produced water.
-- The well is expected to be shut-in for a two-week pressure
build-up test, following which we anticipate completing and testing
an additional 450 feet of identified pay.
Paul Baay, President and Chief Executive Officer, commented:
"The Cascadura production test results represent a dramatic
change for Touchstone, as it confirms the monumental resource
potential of the Ortoire exploration block following the earlier
success of our Coho-1 well. Furthermore, the test results are only
attributable to the lower most portion of the well, and with 450
feet of contiguous sand to be tested, the full potential of the
structure is yet to be defined.
To put these results in context, our average daily oil
production for the three months ended September 30, 2019 was 1,729
bbls/d. The modelling from the final test results at Coho-1
supports initial gross production rates between 10 to 12 MMcf/d per
day (approximately 1,667 to 2,000 boe/d) with Cascadura now set to
provide a further step change. Given these results, the Company
will focus on multiple tie-in scenarios in order to maximize
economic value. The Ortoire exploration block continues to
consistently and dramatically outperform expectations and presents
an exciting new opportunity for both Touchstone and the onshore oil
and gas industry in Trinidad."
Cascadura-1ST1 Testing
As previously announced, the Cascadura-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) was sidetracked
(ST1) and drilled to a total depth of 6,350 feet. Cased hole
wireline logs and drilling samples indicated approximately 1,037
feet of prospective hydrocarbon pay in the Cruse and Herrera
formations at depths between 1,030 and 6,350 feet. The first stage
of the initial production test of the Cascadura-1ST1 well was
designed to evaluate the lowest 162 feet of prospective pay found
in the Herrera Gr7c and Herrera Gr7a formations between 6,056 and
6,218 feet. This interval was completed on January 17, 2020, and
testing was suspended due to high pressures and natural gas volumes
encountered on the clean-up flow.
The Company subsequently mobilized an international well testing
company to assist in the evaluation of the high-pressure natural
gas well. Natural gas production testing commenced on February 4,
2020 with flow tests spanning a total of 36 hours, comprised of an
initial clean-up flow period, followed by an initial shut-in period
and a four-step rate test, including a final 14-hour extended flow
test.
Cascadura-1ST1 achieved a peak production rate in excess of
5,736 boe/d during the extended flow test period. This production
rate included 30.2 MMcf/d of natural gas and 710 bbls/d of natural
gas liquids. The flowing pressure of the well during this stage of
testing was 3,305 psi through a 40/64" choke. During the final
14-hour extended flow test period, the well averaged a production
rate in excess of 5,180 boe/d including 26.9 MMcf/d of natural gas
and 694 bbls/d of natural gas liquids. The flowing pressure of the
well during this test period was 3,319 psi through a 40/64" choke,
resulting in an estimated 20% draw down. A total of 28.6 million
cubic feet of natural gas (4,770 barrels of oil equivalent) was
produced during testing, with 680 barrels of natural gas liquids
and 38 barrels of water.
During the final extended flow test, Cascadura-1ST1 yielded an
average of 54deg API natural gas liquids at a ratio of
approximately 26 barrels of free natural gas liquids per million
cubic feet of natural gas produced. Field analysis of the produced
gas indicated liquids rich natural gas with no hydrogen sulfide
content. Additional testing of fluid samples will be conducted to
accurately assess the gas and associated liquids composition.
The well is now expected to be shut-in for an extended pressure
build-up survey. This build-up period is anticipated to take two
weeks, after which the Company plans to complete and test the
second stage of the Herrera Gr7bc formation targeting approximately
450 feet of pay immediately above the first test interval.
James Shipka, Chief Operating Officer, commented:
"The exceptional performance of the initial Cascadura test
demonstrates the tremendous potential of the high-quality Herrera
turbidites on the Ortoire block. The Coho and Cascadura discoveries
have proven our turbidite model and indicate that the main sand
fairway extends through a large portion of the Ortoire block. These
discoveries provide further confidence as we move forward with two
further exploration wells at our Chinook and Royston prospects
which are targeting separate structures along the same geological
trend."
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 / 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 with respect to the
quality and quantity of prospective hydrocarbon accumulations; well
test results; the Company's anticipated timing and completion of
future well testing; the Company's exploration plans and
strategies, including with respect to future exploration drilling
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.
Oil and Gas Matters
References in this announcement to production test rates and
initial flow rates are useful in confirming the presence of
hydrocarbons; however, such rates are not determinative of the
rates at which such wells will commence production and decline
thereafter and are not indicative of long-term performance or of
ultimate recovery. Additionally, such rates may also include
recovered "load oil" fluids used in well completion stimulation.
While encouraging, readers are cautioned not to place reliance on
such rates in calculating the aggregate production for the Company.
A pressure transient analysis or well-test interpretation has yet
to be carried out in respect of the well. Accordingly, the Company
cautions that the test results should be considered
preliminary.
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
DRLEAKAKELXEEEA
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February 06, 2020 02:00 ET (07:00 GMT)
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