TIDMTXP
RNS Number : 5976U
Touchstone Exploration Inc.
06 December 2021
TOUCHSTONE UPDATES TESTING RESULTS FOR ROYSTON-1 CONFIRMING
LIGHT OIL DISCOVERY
CALGARY, ALBERTA (December 6, 2021) - Touchstone Exploration
Inc. ("Touchstone", "we", "our", "us" or the "Company") (TSX, LSE:
TXP) is pleased to provide an update on the results of the first
production test at our Royston-1 exploration well and provide data
from the second test, both of which confirmed separate light oil
discoveries.
As previously released, 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 subsequently flowed
up 3.5-inch tubing on a variety of choke sizes between 16/64 inches
and 40/64 inches at rates up to 550 bbls/d. The recovered oil was
light, sweet crude with an average 33-degree API (corrected to
60-degree Fahrenheit) with sampling throughout flow testing
indicating an average 94% oil cut with some solution gas present
but not measured. The configuration of the downhole assembly was
not optimal for testing light oil given it was designed to test a
potential liquids rich gas interval.
While we worked to suspend the initial production test to move
uphole for the second test, the well continued to flow significant
volumes of crude oil at high pressure from the intermediate sheet,
and heavy weight mud was required to control the well before
proceeding.
We completed our second production test in the lowermost portion
of the overthrust sheet at depths between 9,878 and 10,148 feet
with a gross 270 feet of section perforated (202 feet of net pay).
Test two has established a light oil reservoir in the overthrust
sheet of the Herrera Formation with flow rates of up to 430 bbls/d
of total fluid observed. Testing indicated light, sweet crude oil
with an average 30-degree API (corrected to 60-degree Fahrenheit),
while build-up testing indicated a bottomhole reservoir pressure of
7,098 psi. Solution gas was also present on the test but was not
measured.
The downhole assembly for the test was designed for a liquids
rich natural gas test and again included the use of 3.5-inch tubing
which was not ideal for the actual conditions encountered following
completion. Unlike results from the first production test, during
the second test the lower portion of the overthrust sheet produced
with high water cuts averaging 90% throughout the flow test. We
designed the completion with multiple intervals where production
can be isolated and, in the future if a smaller tubing string is
employed, we can segregate the interval to maximize crude oil
production.
Paul Baay, President and Chief Executive Officer, commented:
"We are excited to announce this further, large oil discovery at
Royston-1. The results are the reason why we find the geology in
Trinidad's hydrocarbon charged basin so exciting. This oil
discovery will allow us greater flexibility for the pace of
development of the project, as we have the opportunity to design
production facilities while we are selling crude oil testing
volumes.
I would encourage stakeholders to view our latest corporate
presentation to fully understand the areal extent of the Royston
structure and its potential. The presentation also provides a
glimpse at the underlying Cretaceous exploration opportunity. We
now have an exciting development project along with the upside from
the remaining exploration in the subthrust sheet and the
Cretaceous. Once we have completed the final production test at
Royston-1, we intend to work to formulate a long term development
plan, which is anticipated to include a number of wells and
associated facilities."
Touchstone has now suspended the second test interval and is
moving uphole to the third production test which will complete the
upper most portion of the overthrust sheet. We have redesigned the
third test in anticipation of a liquids test and will be using an
idealized 2 7/8-inch tubing string to provide the opportunity to
conduct a longer-term production test. We have also designed the
program such that, if the final test is successful, the test two
and test three intervals can be combined to complete a long-term
production test from the entire overthrust sheet. During testing,
oil volumes are being trucked to one of our existing sales
facilities.
In the future we envision two additional wells to be drilled
from the existing Royston surface location subject to required
approvals. The prospects include Royston Deep-1, which will
evaluate the entire Herrera section. As an exploration well,
Royston Deep-1 would seek to establish the base of the oil zone in
the intermediate thrust sheet as well as investigating the
underlying subthrust Herrera reservoir. The second exploration
prospect, Kraken-1, is targeting the deep Cretaceous turbidite
sands.
James Shipka, Chief Operating Officer, commented:
"Trinidad continues to provide us with rich hydrocarbon
opportunities as is evident from the latest test results at
Royston. The unique opportunity at Royston is that we can design a
production profile from day one that includes low emissions from
reinjection of gas and/or produced water to maintain reservoir
pressure and enhance recovery factors. We really do have two
distinctly different oil plays to exploit in both the intermediate
and overthrust sheets of the Herrera, and based on analogous pool
data, we have a template to optimize production and recoveries.
Additional exploration opportunities, including the Royston
subthrust and the underlying Cretaceous prospects, provide exciting
future drilling inventories to be investigated as we work to bring
discovered reserves onto production. We are in an enviable position
of having a multi-year exploration and development program ahead of
us as we continue to grow in Trinidad."
Information Regarding the Offsetting Penal-Barrackpore Pool
The offsetting Penal-Barrackpore Herrera trend is located
approximated 23 kilometres west of Royston and represents one of
the largest known oil accumulations in southern Trinidad.
Discovered in 1939, the Herrera sands in the trend are anticipated
to recover up to 129 million barrels of 25 to 56-degree API oil and
condensate along with over 600 Bcf of associated natural gas. The
pools in the Penal-Barrackpore trend have hydrocarbon accumulations
in the overthrust, intermediate, and subthrust sheets at depths
between 6,000 and 10,000 feet and pressures between 3,900 and 6,900
psi, which is consistent with what we have observed in Royston and
elsewhere in the Ortoire block. To date, based on available
information, the overthrust sheet has produced over 31 million
barrels of oil; the intermediate sheet has produced over 23 million
barrels of oil; the subthrust has produced approximately 19 million
barrels of oil; and all three sheets continue to produce today.
Water cuts throughout Penal-Barrackpore range from zero to over 95%
with the average water cut being between 30% and 40%.
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:
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 drilling targets,
receipt of regulatory approvals, production testing operations and
the 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.
Information contained herein concerning the Penal-Barrackpore
pool in Trinidad was based on data from publicly available industry
sources as well as from resource reports, market research and
industry analysis which the Company believes to be reasonable.
However, this data is inherently imprecise, although generally
indicative of relative oil and gas reservoir and performance
characteristics. While the Company is not aware of any material
misstatements regarding any industry data presented herein, the oil
and natural gas industry involves numerous risks and uncertainties,
and data is subject to change based on various factors.
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
Bcf billion cubic feet
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.
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.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
DRLMZMGZGKZGMZZ
(END) Dow Jones Newswires
December 06, 2021 02:00 ET (07:00 GMT)
Touchstone Exploration (LSE:TXP)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Touchstone Exploration (LSE:TXP)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
