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RNS Number : 7054T
Touchstone Exploration Inc.
18 November 2019
TOUCHSTONE ANNOUNCES COHO-1 GAS TEST OF 17.5 MMCFD
CALGARY, ALBERTA (November 18, 2019) - Touchstone Exploration
Inc. ("Touchstone", "we", "our", "us" or the "Company") (TSX / LSE:
TXP) provides production test results for the Coho-1 well on the
Ortoire exploration block, onshore in the Republic of Trinidad and
Tobago.
As previously reported, the Coho-1 exploration well (Touchstone
80% working interest operator, Heritage Petroleum Company Limited
20% working interest) was spudded on August 7, 2019 and was drilled
to a total depth of 8,560 feet. Wireline logs indicated
approximately 64 feet of prospective natural gas pay in the Herrera
Gr7b formation between 5,486 and 5,782 feet.
Production testing of the Herrera Gr7b formation commenced on
November 16, 2019 with a flowback period spanning seven hours using
gradually increasing choke sizes. During the final flowback period,
a peak rate of 19.8 million cubic feet per day ("MMCFD") (3,300
barrels of oil equivalent ("BOEPD")) of dry, sweet natural gas was
observed with a wellhead pressure of 2,632 psi on a 32/64" choke.
The average natural gas rate associated with this final period was
17.5 MMCFD (2,917 BOEPD) with an estimated 23% draw down. During
the total flowback test period, 2.1 MMCF of natural gas was
recovered as well as 22.5 barrels of water, representing
approximately 68% of the total load fluid used during completion
operations.
Given the higher than expected initial test rates and due to
equipment limitations and concerns regarding the environmental
impact of the test flare, the Company chose to shorten the flowback
period and to conduct the balance of the testing at restricted
drawdowns. 13 hours currently remain in the final 24-hour
stabilized flow period. The average stabilized test rate over the
past 11 hours was 11.8 MMCFD (1,963 BOEPD) at an average wellhead
pressure of 2,795 psi on a restricted 28/64" choke, resulting in an
estimated 18% draw down.
Over the current 37-hour flowback and production testing period,
a total of 11.2 million cubic feet ("MMCF") of natural gas and 298
barrels of water have been recovered, including 37 barrels of load
water. Water production averaged 23 barrels per MMCF of natural
gas, significantly below the Company's expectations based on offset
well data.
Upon completion of the stabilized flow test, the well will be
shut-in for an extended pressure build-up test. The Company will
release full analysis of the pressure build-up test when full
results are available.
Paul R. Baay, President and Chief Executive Officer,
commented:
"These positive well test results represent a new era for
Touchstone as we expect to add significant natural gas volumes to
our production base. The results outline the opportunities that
still exist for onshore Trinidad exploration and position
Touchstone to become a top three onshore petroleum producer. It
must also be noted that the Coho-1 well is in the smallest prospect
of the Ortoire exploration program. The Company will proceed to tie
in the well through a 3-kilometre pipeline to an existing
production facility that has capacity in excess of this well's
estimated production rates. We anticipate bringing the well on
production during the first half of 2020."
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 Joint Broker)
Nominated Advisor: Edward Mansfield / Daniel Bush Tel: +44 (0)
207 408 4090
Corporate Broking: Jerry Keen
GMP FirstEnergy (Joint Broker)
Jonathan Wright / Hugh Sanderson Tel: +44 (0) 207 448 0200
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;
initial well test results; the Company's anticipated development
and timing of the Coho-1 well including potential tie-in and
production therefrom; and the sufficiency of resources and
available financing to fund future 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 not
been 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
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November 18, 2019 02:09 ET (07:09 GMT)
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