TIDMTXP
RNS Number : 1080V
Touchstone Exploration Inc.
12 April 2021
CASCADURA DEEP-1 WELL TEST CONFIRMS LIQUIDS RICH NATURAL GAS
CALGARY, ALBERTA (April 12, 2021) - Touchstone Exploration Inc.
("Touchstone", "we", "our", "us" or the "Company") (TSX, LSE: TXP)
announces the completion of flowback testing of the Cascadura
Deep-1 well, confirming a liquids rich natural gas discovery.
Touchstone has an 80 percent operating working interest in the
well, which is located on the Ortoire block onshore Trinidad and
Tobago ( Heritage Petroleum Company Limited ("Heritage") holds the
remaining 20 percent working interest).
Highlights
-- Touchstone perforated the top 199 feet of the 449 feet
identified as potential pay in sheet four of the overthrust Herrera
formation on April 8, 2021.
-- The average flowback rate during the extended 24-hour test
period was approximately 4,262 boe/d , including 22.9 MMcf/d of
natural gas and 449 bbls/d of NGLs.
-- Peak flowback rate of approximately 4,567 boe/d was observed,
comprised of 24.5 MMcf/d of natural gas
and 477 bbls/d of NGLs.
-- Approximately 48.8 MMcf of natural gas ( 8,138 boe) and 1,081
barrels of NGLs were produced during the testing period.
-- Field analysis indicated liquids rich gas with no hydrogen sulfide and no produced water.
-- The well is currently shut-in for a minimum four-week pressure build-up test.
Paul Baay, President and Chief Executive Officer, commented:
"The positive test results from Cascadura Deep-1 further expands
the opportunity on the Ortoire block as we now expect to have two
distinct and separate sheets producing from two wells in the
Cascadura structure. We will accelerate operations required to
bring the two Cascadura wells onto production as the test results
allow us to properly size surface facilities for reservoir
management. We are also moving forward with the required
applications to establish a second Cascadura surface location,
designed for up to four development wells. The test results
demonstrate the clear future production opportunities for the
Company."
Cascadura Deep-1 Testing
Cascadura Deep-1 well production testing commenced on April 8,
2021, with flow tests spanning a total of 58 hours, comprised of an
initial clean-up flow period, followed by an initial shut-in period
and a five-step rate test, including a 24-hour extended flow test.
Well testing was conducted by an international well testing and
measurement company.
During the extended flow test period, the well achieved a peak
production rate of approximately 4,567 boe/d (90% natural gas).
This production rate included approximately 24.5 MMcf/d of natural
gas and 477 bbls/d of NGLs flowing at 1,917 psi. During the 24-hour
extended portion of the flow test, the well averaged a production
rate of approximately 4,262 boe/d (89% natural gas), including 22.9
MMcf/d of natural gas and an estimated 449 bbls/d of NGLs. The
flowing pressure of the well during this stage of testing averaged
1,856 psi through a 50/64-inch choke. Approximately 48.8 MMcf of
natural gas (8,138 boe) was produced during testing, with 1,081
barrels of NGLs and 27 barrels of water which were less than the
load fluid used in the well.
During testing, Cascadura Deep-1 yielded 59.5-degree API gravity
NGLs at an average ratio of approximately 22 barrels of NGLs per
MMcf 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 currently shut-in for an extended pressure build-up
survey for a minimum of four weeks to identify possible formation
boundaries. Touchstone will not conduct further testing of the well
and intends producing the well concurrently with
Cascadura-1ST1.
James Shipka, Chief Operating Officer, commented:
"The exceptional performance noted during Cascadura Deep-1 well
testing reinforces the geological concept of multiple stacked,
independent hydrocarbon charged horizons in the Herrera turbidite
fairway. We will not be conducting any up-hole testing in the well
as we do not want to interrupt this interval at the risk of
damaging the reservoir with water-based fluids. The data collected
in this flow test indicates that sheet four is separate from sheet
three, where production is expected from the Cascadura-1ST1 well.
There remains an additional 558 feet of potential pay above the
tested zone in sheet three which can be evaluated in future
development wells."
Extension of Lease Operatorship Agreements
Touchstone has further extended the term of its Lease
Operatorship Agreements ("LOAs") with Heritage for its Coora-1,
Coora-2, WD-4 and WD-8 blocks to April 30, 2021. The LOAs were
originally set to expire on December 31, 2020 and were previously
extended to March 31, 2021. The LOAs remain under existing terms
and conditions while Heritage progresses on regulatory approvals
regarding new ten-year LOAs for each property.
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: Edward Mansfield / Daniel Bush / Michael McGloin Tel: +44 (0) 207 408 4090
Corporate Broking: Jerry Keen
Canaccord Genuity (Joint Broker)
Adam James / Henry Fitzgerald O'Connor / Thomas Diehl Tel: +44
(0) 207 523 8000
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 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; the
Company's exploration plans and strategies, including anticipated
drilling, production testing, development, tie-in, facilities
construction, and timing thereof; and the Company's ongoing
negotiations regarding its LOAs and anticipated terms,
finalization, achieving regulatory approvals 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.
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.
Abbreviations
bbls/d barrels per day
boe barrels of oil equivalent
boe/d barrels of oil equivalent per day
MMcf million cubic feet
MMcf/d million cubic feet per day
API American Petroleum Institute gravity
NGLs natural gas liquids
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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