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RNS Number : 3209W
Touchstone Exploration Inc.
21 December 2021
TOUCHSTONE ANNOUNCES THIRD TEST RESULTS AT ROYSTON-1 AND EXTED
PRODUCTION TEST
CALGARY, ALBERTA (December 21, 2021) - Touchstone Exploration
Inc. ("Touchstone", "we", "our", "us" or the "Company") (TSX, LSE:
TXP) is pleased to announce the results of the final production
test at our Royston-1 exploration well which has confirmed a light
oil discovery in the upper most section of the Herrera Formation.
Touchstone has an 80 percent operating working interest in the
well, which is located on the onshore Ortoire block on the island
of Trinidad. Heritage Petroleum Company Limited holds the remaining
20 percent working interest.
The third Royston-1 completion and exploration test was designed
to evaluate an interval at the top of the overthrust sheet of the
Herrera Formation. The completion spanned an 84-foot gross interval
(56-feet of net pay). The zone was perforated on December 16, 2021
and was opened to flow on December 17, 2021 on a 10/64 inch choke.
Initial shut-in surface pressure was 2,900 psi indicating a
downhole pressure of approximately 7,100 psi. The choke was
increased to 20/64 inches, and the well flowed at rates up to 1,368
bbls/d of total fluids with indicated oil cuts between 40% and 60%
of 31-degree API sweet crude (corrected to 60-degree Fahrenheit). A
non-measurable amount of solution gas was also observed during the
test. Following an initial shut-in period, the well resumed flow
with choke sizes between 20/64 inches and 40/64 inches.
In aggregate, the well produced 1,786 barrels of total fluid at
an average flow rate of 705 bbls/d with oil cuts varying between
40% and 60% throughout the test. We plan to place the well on an
extended production test following a seven-day build-up period to
re-evaluate bottomhole conditions. The extended production test
will be designed to assess optimal flowing conditions to maximize
production and data collection. We anticipate providing additional
information on the long-term production test during the first
quarter of 2022.
Paul Baay, President and Chief Executive Officer, commented:
"This third test confirms the commerciality of the newly
discovered light oil pool at Royston. Data from all three of the
production tests have confirmed that we have a long-term oil
project that has the potential to provide future economic benefits
to our shareholders and the country.
This test was the final of three production tests of the Herrera
Formation which, as a group, were designed to assess the full 1,014
feet of gross section (393 feet net) identified in the well bore at
depths between 9,686 feet and 10,700 feet. The first test evaluated
the potential of the intermediate sheet in the lowest portion of
the well while tests two and three evaluated the overthrust sheet
above. All three of the tests encountered economic oil and
confirmed the presence of hydrocarbon over the entire interval.
This information, in the context of the 3,156-acre structure as
defined in our 2D seismic interpretation, confirms a large volume
of resources in place on the Royston property. To clarify, the
final production test was the only test properly configured for an
oil test and more accurately depicted the productive potential of
the reservoir.
We will now be using the data to formulate a long-term field
development plan including a drilling program to further evaluate
the intermediate and subthrust sheets in the Herrera Formation of
the Royston structure. We also have the benefit of being able to
use data from the analogous Penal/Barrackpore pool that has in
excess of 80 years of production history. With existing road
infrastructure in place, we have the ability to monetize our test
production volumes by trucking to existing sales facilities to
process the oil. This can be achieved in parallel while we design
facilities to tie in oil volumes and dispose of produced water. We
will take the opportunity to implement best practices both below
and above ground to optimize value with minimal environmental
impact.
I would like to thank our stakeholders for their ongoing support
and wish everyone a safe and prosperous new year."
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)
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, 2D
seismic results and the Company's interpretation thereof; and the
Company's exploration plans and strategies, including anticipated
future development plans, facilities construction, 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.
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
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.
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END
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