TIDMTXP
RNS Number : 6327H
Touchstone Exploration Inc.
14 March 2018
OPERATIONAL AND DRILLING UPDATE
Calgary, Alberta - March 14, 2018 - Touchstone Exploration Inc.
("Touchstone" or the "Company") (TSX / LSE: TXP) announces an
operational and drilling update.
Highlights
-- Achieved January and February 2018 crude oil sales of 1,521
and 1,552 barrels per day ("bbls/d"), respectively.
-- Realized average prices of US$61.17 per barrel and US$57.79
per barrel for January and February crude oil volumes,
respectively.
-- Production from the four wells drilled in 2017 remained
strong, contributing an average of 280 bbls/d to January and
February 2018 production.
-- Current field estimated production is approximately 1,705
bbls/d (based on the previous seven-day average).
-- Current field estimated production from the four wells
drilled in 2017 is approximately 400 bbls/d (based on the previous
seven-day average).
-- Drilled, cased, and completed the first well of the 2018
drilling campaign, which is currently on initial production and
pumping at a field estimated controlled rate of 56 bbls/d.
Production
Coora 1 Block
The CO-368 well has been producing for 271 days from 41 feet of
net oil sand in the Cruse formation. The well has produced
approximately 14,010 barrels of oil, representing an average of 52
bbls/d. The well remains on pump with a current field estimated
production rate of approximately 41 bbls/d.
CO-369 is producing from 71 feet of net oil sands in the Cruse
formation with an average oil production rate of 188 bbls/d over
its first 262 days. The well is currently pumping, and current
field estimated production is 196 bbls/d.
Grand Ravine WD-4 Block
The lowermost zone of the PS-598 well was abandoned, and the
primary Upper Forest formation zone of interest was completed on
February 10, 2018. Approximately 150 feet of net oil sands were
perforated, and the well is currently pumping at a field estimated
rate of 96 bbls/d. The well has produced approximately 6,200
barrels of oil since its initial completion in July 2017, including
2,660 barrels produced in the 29 days since being recompleted.
PS-599 was recompleted on February 24, 2018. The lowermost zone
in the well was suspended, and the primary Forest formation zone of
interest was completed. A total of 38 feet of net oil sands were
perforated, and the well is currently pumping at a field estimated
average of 69 bbls/d. The well has produced approximately 7,110
barrels of oil during since its initial completion in July
2017.
Paul Baay, President and Chief Executive Officer, commented:
"The team has now optimized the wells in the 2017 program, and
we believe this should provide shareholders with a good indication
of the potential for our asset base. Production results of the four
wells drilled throughout 2017 have been very encouraging, and we
expect the current levels to continue to increase throughout the
year. We have a very repeatable platform from which to build out
our existing drilling campaign as we move closer to our 2,000
bbls/d sustainable rate."
2018 Drilling Campaign
The PS-602 well on the Company's WD-4 property was spud on
February 3, 2018 and was drilled to a total depth of 5,383 feet.
The rig was released on February 14, 2018, and the well was cased
for oil production. Wireline logs indicated approximately 270 feet
of net oil pay as follows:
Upper Forest formation 108 feet
Lower Forest formation 162 feet
Total (net) oil pay 270 feet
The well was completed on February 27, 2018 perforating the
lowermost 80 feet of oil sands encountered in the Lower Forest
formation. The well was placed on pump on March 1, 2018 and is
currently producing at a controlled rate of 56 bbls/d. The Company
will continue to optimize production from this well.
The initial well on the Forest Reserve WD-8 block will spud in
the next 48 hours following a delay of approximately three weeks
related to the mobilization, inspection and certification of the
drilling rig. The Company expects to drill the well to a total
depth of 4,700 feet to target the Lower Cruse formation. Following
the completion of this well, the drilling rig is expected to move
to a second location on the WD-8 block.
Following completion of surface lease construction, the first of
two planned wells on the Coora 2 block is scheduled to spud in the
third week of March utilizing a second drilling rig. The Company is
targeting to drill the well to a total depth of 3,800 feet.
Immediately following this well, the rig is expected to drill a
second well from the same surface location targeting oil reserves
in an offsetting fault block.
James Shipka, Chief Operating Officer, said:
"The opportunity to secure a second drilling rig is significant
news as it will allow us to accelerate our 2018 drilling program
and subsequently should enable us to increase production earlier
than previously anticipated. We are set to spud two more wells on
the Forest Reserve WD-8 and Coora 2 blocks in the coming weeks,
giving us further momentum as we continue our ambitious 2018
drilling campaign."
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 Adviser: Edward Mansfield / Mark Percy 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 potential undertaking, timing,
locations and costs of future well drilling, the estimated amount
and timing of incremental production from well drilling, the
quality and quantity of prospective hydrocarbon accumulations as
indicated by wireline logs, and sufficiency of resources to fund
drilling 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 Annual
Information Form dated March 21, 2017 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
Geologist 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 company news service from the London Stock Exchange
END
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