TIDMTXP
RNS Number : 5726R
Touchstone Exploration Inc.
08 November 2021
TOUCHSTONE ANNOUNCES LIGHT OIL DISCOVERY IN THE FIRST OF THREE
ROYSTON-1 TESTS
CALGARY, ALBERTA (November 8, 2021) - Touchstone Exploration
Inc. ("Touchstone", "we", "our", "us" or the "Company") (TSX, LSE:
TXP) is pleased to announce the results of the first of three
planned production tests at our Royston-1 exploration well which
has confirmed a light oil discovery in the lowermost section of the
well. The section tested was initially designed to establish the
base of potential hydrocarbon, and this light oil discovery
represents a new pool which has not been encountered in any of the
regional offsetting wells.
As previously released, the Royston-1 exploration well was spud
on August 12, 2021 and was drilled to a total depth of 10,700 feet.
Touchstone has an 80 percent operating working interest in the
well, which is located on the onshore Ortoire block on the island
of Trinidad. Heritage Petroleum Company Limited holds the remaining
20 percent working interest. Drilling samples and open hole
wireline logs indicated that the well encountered a significant
Herrera turbidite package with a total observed thickness of more
than 1,000 feet. The overall Herrera section drilled in Royston-1
contained approximately 609 feet of clean sand, of which 393 gross
feet in two unique thrust sheets appeared to be hydrocarbon pay
based on mud gas logging and open hole logs.
The first and deepest Royston-1 completion and exploration test
was designed to evaluate an interval at the bottom of the well in
the intermediate sheet of the Herrera Formation. The completion
spanned a 92-foot gross interval (30 feet of net pay) below 10,434
feet that was identified on wireline logs as being hydrocarbon
bearing. Following completion and a brief clean-up period to
recover load fluid, the well was shut in and built to a pressure of
3,150 psi at surface (estimated 7,100 psi reservoir pressure). The
interval was then flowed up 3.5-inch tubing on a variety of choke
sizes between 16/64 inches and 40/64 inches at rates up to 360
bbls/d of 34.5-degree API crude oil before being shut-in. Testing
of this interval has been completed, and we are moving uphole to
the well's primary production test intervals.
Paul Baay, President and Chief Executive Officer, commented:
"We are excited to discover a promising new light oil pool in
the deepest test section of the Royston well, adding further
potential to the future development opportunity in the Royston
area, as light oil can be easily and economically developed
alongside any gas development. The initial test confirms the large
hydrocarbon column in the well, and we interpret the following two
primary testing targets to be liquids rich natural gas. These
results exceed pre-test expectations, as a flowing light oil
opportunity with significant development potential from the bottom
100 feet of the wellbore is a major addition to the Royston area
opportunity. We have the potential to further evaluate the
intermediate Herrera in future drilling programs by penetrating the
intermediate sheet when we drill and assess the underlying
Cretaceous prospect. These results further amplify our onshore
opportunities in Trinidad."
Based on wireline logging and drilling data, we are configuring
the next two uphole primary production test intervals to evaluate
liquids rich natural gas prospects, with flowback and full buildup
analysis planned for each zone. We are currently preparing to
perforate the second test interval in the overthrust sheet of the
Herrera Formation, with a 270-foot gross interval (145 feet of net
pay) targeting the Gr7bc sands. The third test is designed to
evaluate an 84-foot interval (62 feet of net pay) at the top of the
Gr7a Herrera sands. The second test is expected to be completed
within the next three weeks, and we anticipate the third and final
test to be completed by the end of December 2021.
James Shipka, Chief Operating Officer, commented:
"We are very pleased with this oil discovery in the deepest
sheet of the Herrera Formation, which demonstrates why we design
our exploration wells to investigate prospects that lie beyond
depths drilled by previous wells. Although we only tested 30 feet
of net pay in the lower section, we believe the results strongly
suggest that all the sands encountered in the intermediate sheet
(270 gross feet with 71 net feet of pay) are hydrocarbon charged.
This initial completion test was designed to evaluate potential
natural gas volumes, and as such, the downhole assembly was not
optimized for an oil discovery and test. At this depth, the larger
tubing made it difficult to obtain a consistent crude oil flow rate
but provided enough data to confirm the discovery of light oil in
the well. Given Royston-1 is an exploration well with the primary
prospects remaining uphole, we are excited to move to the next test
intervals. The subsequent two production tests are in our primary
zones of interest in the well as they exhibit higher resistivities
on the wireline logs and cleaner indications of sand. The discovery
of light oil at depths below 10,400 feet represents a huge success
for us in this well and bodes well for our upcoming primary
production tests. "
Touchstone's updated corporate presentation is available on our
website ( www.touchstoneexploration.com ).
Touchstone Exploration Inc.
Touchstone Exploration Inc. is a Calgary, Alberta 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 Joint Broker)
Nominated Advisor: Daniel Bush / Toby Gibbs / Michael McGloin
Tel: +44 (0) 207 408 4090
Canaccord Genuity (Joint Broker)
Adam James / Henry Fitzgerald O'Connor / Thomas Diehl Tel: +44
(0) 207 523 8000
Camarco (Financial PR)
Billy Clegg / Emily Hall / Lily Pettifar Tel: +44 (0) 203 781
8330
Advisories
Forward-Looking Statements
Certain information provided in this announcement may constitute
forward-looking statements and information (collectively,
"forward-looking statements") within the meaning of applicable
securities laws. Such forward-looking statements include, without
limitation, forecasts, estimates, expectations and objectives for
future operations that are subject to assumptions, risks and
uncertainties, many of which are beyond the control of the Company.
Forward-looking statements are statements that are not historical
facts and are generally, but not always, identified by the words
"expects", "plans", "anticipates", "believes", "intends",
"estimates", "projects", "potential" and similar expressions, or
are events or conditions that "will", "would", "may", "could" or
"should" occur or be achieved.
Forward-looking statements in this announcement may include, but
is not limited to, statements relating to the quality and quantity
of prospective hydrocarbon accumulations; well test results and the
Company's interpretation thereof; and the Company's exploration
plans and strategies, including anticipated production testing
operations and timing thereof . 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 2020 Annual
Information Form dated March 25, 2021 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 the well 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 final pressure transient analysis and/or well-test interpretation
has yet to be carried out in respect of the well. Accordingly, the
Company cautions that the production test results contained herein
should be considered preliminary.
Abbreviations
bbls/d barrels per day
API American Petroleum Institute gravity
psi pounds per square inch
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.
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END
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