CALGARY, AB, Oct. 14, 2020 /CNW/ - Touchstone Exploration Inc.
("Touchstone", "we", "our", "us" or the "Company") (TSX:
TXP) (LSE: TXP) reports that the Company has completed drilling the
Chinook-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) and is pleased to
announce that the well encountered significant hydrocarbon
accumulations based on wireline log data. Chinook-1 is the
Company's third exploration well drilled on the Ortoire exploration
block and the third hydrocarbon discovery since commencing the
Ortoire exploration drilling program in August 2019.
Highlights
- Chinook-1 was drilled to a total depth of 10,039 feet to test a
separate structural formation 1.5 kilometres south from the
successful Cascadura gas discovery.
- Wireline logs indicated significant natural gas pay totalling
approximately 589 net feet in three unique thrust sheets in the
Herrera sands.
- Additional natural gas pay of approximately 20 net feet was
encountered in the shallower Cruse formation.
- Completion and testing of the well is expected to be undertaken
during the first quarter of 2021.
- We expect the drilling rig to mobilize to our Cascadura Deep
location prior to the end of the month.
Drilling samples and open hole wireline logs indicated that the
Chinook-1 well encountered a significant Herrera turbidite package
with a total thickness of 2,000 feet containing over 1,480 feet of
sand. Open hole well logs and drilling samples indicated that these
sands contain an aggregate 589 net feet of natural gas pay in three
unique thrust sheets. The well encountered 341 net feet of
hydrocarbon pay in the Gr7a section of the overthrust Herrera sands
at measured depths between 8,154 and 8,710 feet. The overthrust
Gr7a sands were the Company's primary target originally identified
in the offsetting BW-7X well. 180 net feet of hydrocarbon pay was
identified in the Gr7bc section of the intermediate Herrera sands
at measured depths between 8,850 and 9,750 feet. The sands
encountered in this thrust sheet also correlate to the offsetting
BW-7X well and were the Company's secondary target. 68 net
feet of hydrocarbon pay was identified in the Gr7bc section in a
subthrust sheet of Herrera sands at measured depths between 9,750
and 10,003 feet. This represents a previously unknown thrust sheet
as no sands of this depth were previously penetrated in the
offsetting wells.
In addition to the Herrera sandstones and the associated
hydrocarbon discoveries, an additional 20 net feet of hydrocarbon
pay was identified in the Cruse formation at depths between 2,996
and 3,021 feet. This represents a new discovery in the area that
was not observed in offsetting well data.
In the first quarter of 2021, the Company expects to initiate a
comprehensive completion and testing plan to evaluate the economic
potential of the hydrocarbon sands. We expect the drilling rig to
move to the Cascadura Deep location prior to the end of the
month.
Paul R. Baay, President and
Chief Executive Officer, commented:
"The results from the Chinook well exceeded pre-drill
expectations. The successful exploration well further confirms the
geological model developed by our team and is expected to provide
significant development opportunities in the Chinook area. With
both the shallow and deepest zones being new to the area, it also
identified future exploration opportunities. The Company's focus is
now on the drilling of the Cascadura Deep exploration well, which
will impact the timing of Chinook-1 production testing operations
to ensure the safety of operations. I would like to thank our
contractors, suppliers, government officials and our staff who have
worked together to keep us moving forward during these challenging
times."
James Shipka, Chief Operating
Officer, stated:
"We continue to see the significant and growing
potential of the Ortoire exploration block with Chinook-1
encountering over 2,000 feet of turbidite deposits, nearly 1,500
feet of developed sands and a total of over 600 feet of natural gas
pay. At a depth of 10,039 feet, Chinook-1 is one of the deepest
wells drilled onshore Trinidad in
almost a decade and verifies the evolution of our drilling
practices since commencing our exploration program. For Chinook-1,
we employed a synthetic oil-based mud system that assisted in
drilling while reducing formation damage and incorporated a top
drive onto the drilling rig to aid in drilling to greater depths.
We intend to replicate these drilling practices moving forward
given Chinook-1 demonstrated our ability to successfully conduct
complex operations in a safe manner while strictly adhering to
restrictions imposed during the ongoing COVID 19 pandemic."
Chinook-1 Drilling
The Chinook-1 exploration well was spud on August 13, 2020 using Well Services Petroleum
Ltd. Rig #80. The well was designed to explore the potential for a
thick section of Herrera sandstones in the SW-NE trending Chinook
anticline, which is located approximately 1.5 kilometres south of
the Cascadura anticline and our associated gas discovery. The
primary target of the Chinook well was the Gr7a overthrust Herrera
sands near the crest of the structure at an approximate measured
depth of 8,100 feet, which is capped by thick Karamat shales. The
well was intended to further evaluate a secondary target of stacked
or repeated intervals of Gr7bc intermediate Herrera sands from
approximately 8,800 feet to a planned total depth of 9,870 feet.
The well was drilled to a total measured depth of 10,039 feet (true
vertical depth of 9,776 feet) on October 11,
2020 and was extended past its originally planned depth due
to hydrocarbon shows at 9,820 feet.
Despite being spud a mere 1.5 kilometres south of Cascadura, the
Chinook anticline is separate from, and distinctly different than
the Cascadura anticline to the north. The structural mapping on the
Herrera interval reveals that Cascadura and Chinook are two
anticlines converging toward each other, with Cascadura being a
tighter but heavily stacked fold, thereby making it a taller
structure, while Chinook is interpreted to be a simpler, broader
fold.
The Chinook-1 well is the third of a four well exploration
commitment 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
Chinook-1 well included in the Company's December 31, 2019 independent reserves
report.
Further testing is required to determine the economic viability
and potential of the well, and the Company plans to commence
completion and production testing operations during the first
quarter of 2021.
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".
Advisories
Forward-Looking Statements
Certain information provided in this news release may constitute
forward-looking statements within the meaning of applicable
securities laws. Forward-looking information in this news
release 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 future well drilling, well completions
and production testing, the timing and the potential commercial
production viability thereof; and the sufficiency of resources and
available financing to fund future exploration drilling,
completions and production testing 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 2019
Annual Information Form dated March 25,
2020 which has been filed on SEDAR and can be accessed at
www.sedar.com. The forward-looking statements contained in this
news release 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.
SOURCE Touchstone Exploration Inc.