TIDMTXP
RNS Number : 2683X
Touchstone Exploration Inc.
09 August 2018
OPERATIONAL AND DRILLING UPDATE
AND
NOTICE OF INTERIM RESULTS
Calgary, Alberta - August 9, 2018 - Touchstone Exploration Inc.
("Touchstone" or the "Company") (TSX / LSE: TXP) announces an
operational and drilling update.
Highlights
-- Achieved average second quarter 2018 crude oil production of
1,717 barrels per day ("bbls/d"), representing increases of 11% and
29% from the first quarter of 2018 and the second quarter of 2017,
respectively.
-- Delivered July estimated crude oil production of 1,757 bbls/d.
-- Drilled, cased and commenced completion operations on the
sixth and seventh wells of our ten well 2018 drilling campaign.
-- Commenced pre-drilling operations on the eighth well of the 2018 program on our WD-8 block.
-- Identified six independent exploratory drilling prospects on our Ortoire block.
Production
The four wells drilled in the Company's 2017 drilling program
continued to deliver significant volumes, with combined July 2018
field estimated average production of 365 bbls/d. Three of the
first five wells of the Company's 2018 drilling campaign produced a
combined July 2018 field estimated average production rate of 184
bbls/d.
Forest Reserve WD-8 Block
FR-1792 and FR-1793 are undergoing optimization following their
initial completions performed in May 2018. FR-1792 is currently
flowing up casing at a field estimated rate of 92 bbls/d. The well
had an initial 10-day average production rate of 220 bbls/d and a
30-day rate of 193 bbls/d. When the rate and pressure in the well
allow, the Company will run tubing and if necessary, place on pump.
FR-1792 has produced approximately 12,560 barrels of oil since
being brought on production in early May, averaging 140 bbls/d
since completion.
FR-1793 was placed on pump on July 26, 2018 and is currently
producing at a field estimated rate of 38 bbls/d. The Company plans
to optimize its production following the drilling of the eighth
well of the 2018 program which shares a common surface location.
The well had an initial 10-day average production rate of 125
bbls/d and a 30-day rate of 74 bbls/d. Since being placed on
production in mid May 2018, FR-1793 has produced approximately
3,782 barrels, representing an average of 44 bbls/d.
Grand Ravine WD-4 Block
PS-602 is producing at a field estimated rate of 50 bbls/d while
the Company evaluates the potential to comingle the current
completion with a secondary zone already completed. This
optimization has the potential to double production from the well
and will be performed as soon as pressures stabilize between the
two zones. PS-602 has produced approximately 6,909 barrels of crude
oil since being put on production on March 8, 2018, averaging 45
bbls/day to date.
Coora 2 Block
CO-370 and CO-371 have yet to be completed in their primary
up-hole zones of interest as the Company has been producing from
deeper secondary opportunities in both wells. Current regulatory
guidelines require deeper prospects to be tested for commerciality
before moving up-hole. The sands of the Upper Cruse Formation have
not proven to be economic based on initial testing with high gas
rates being observed in CO-370 and limited inflow being seen in
CO-371. On a combined basis, the two wells are currently producing
at a field estimated rate of 20 bbls/d. The Company has applied to
move up-hole to the primary zone of interest in both wells and will
commence operations once approvals are obtained. It is anticipated
that both wells will be completed and on production before the end
of August.
Drilling
Coora 1 Block
Touchstone has completed the drilling of two wells on the Coora
1 block offsetting the successful CO-368 and CO-369 wells drilled
in 2017. The two wells were drilled as step out locations to
evaluate the extent of the sands observed in the offset wells and
to potentially access additional undeveloped reservoirs.
The CO-372 well was spud on June 15, 2018 and reached a total
depth of 6,500 feet. The rig was released on July 13, 2018, and the
well was cased for oil production. Wireline logs indicated the
presence of approximately 413 feet of net oil pay as follows:
Forest formation 281 feet
Cruse formation 132 feet
Total (net) oil pay 413 feet
CO-373 was spud on July 17, 2018 and reached a total depth of
5,250 feet on August 3, 2018. Wireline logs indicated the presence
of approximately 240 feet of net oil pay as follows:
Forest formation 140 feet
Cruse formation 100 feet
Total (net) oil pay 240 feet
Completion operations have commenced on CO-372 and are expected
to be concluded by early next week. CO-373 will be completed
immediately following CO-372, with both wells expected to be on
production within the next two weeks.
Forest Reserve WD-8 Block
Operations are currently underway to drill the eighth well of
the 2018 drilling campaign on the Company's WD-8 property. The new
well will share a surface location with the previously drilled
FR-1793 well and will be targeting new reserves in an offsetting
fault block. The well is expected to spud next week, and upon
completion, the Company will have met the minimum work obligations
specified in the property's lease operating agreement through the
end of 2020.
Ortoire Block
The Company has identified six potential drilling locations on
individual prospects within the exploration property and has
initiated the drilling application process. Touchstone has
commenced applications for certificates of environmental compliance
with local regulatory authorities.
Notice of Interim Results
The Company expects to release its unaudited interim results for
the three and six months ended June 30, 2018 on August 14,
2018.
Paul Baay, President and Chief Executive Officer, commented:
"I am pleased to report that we now have drilled the first seven
wells of the ten well program. With four of the seven wells yet to
contribute to our current stabilized production, we are excited to
increase production in the near-term. With the combination of these
four wells and the remaining three to be drilled this year, we are
looking forward to a strong start to 2019. In addition to the
existing drilling program, the Ortoire exploration opportunities
and future development potential are expected to contribute to our
robust growth objectives going forward."
For further information, please contact:
Touchstone Exploration Inc.
Mr. Paul Baay, President and Chief Executive Officer Tel: +1
(403) 750-4487
Mr. James Shipka, Chief Operating Officer
www.touchstoneexploration.com
Shore Capital (Nominated Advisor and Joint Broker)
Nominated Advisor: Edward Mansfield / Mark Percy / Daniel Bush Tel: +44 (0) 20 7408 4090
Corporate Broking: Jerry Keen
GMP FirstEnergy (Joint Broker)
Jonathan Wright / Hugh Sanderson Tel: +44 (0) 207448 0200
Camarco (Financial PR)
Nick Hennis / Jane Glover / Billy Clegg Tel: +44 (0) 203 757
4980
About Touchstone
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".
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 relating to current
field estimated production, the quality and quantity of prospective
hydrocarbon accumulations as indicated by wireline logs, the
potential undertaking, timing, locations, production rates and
costs of future well drilling, completion and exploration
activities, and sufficiency of resources to fund future drilling
and 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 December 31, 2017
Annual Information Form dated March 26, 2018 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.
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 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 29 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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