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RNS Number : 2086Q
Touchstone Exploration Inc.
27 June 2022
OPERATIONAL UPDATE
CALGARY, ALBERTA (June 27, 2022) - Touchstone Exploration Inc. (
" Touchstone ", "we", "our", "us" or the " Company " ) (TSX, LSE:
TXP) provides an update on the operational progress across the
Ortoire block, onshore Trinidad. Touchstone has an 80 percent
operating working interest in Ortoire block, with Heritage
Petroleum Company Limited holding the remaining 20 percent working
interest.
Coho
-- The pipeline from our Coho facility to the Central block has
been completed, and hydrotesting is scheduled to commence this week
upon which the pipeline will be ready for first gas.
-- The surface facility is 98 percent complete with all
infrastructure in place, including instrumentation, tanks and the
communication tower, which will enable the transmission of gas
meter data to our offices in Calgary and Trinidad.
-- Construction is underway on the 63-foot above ground pipeline
to the Central block tie-in point, which is the final requirement
of the project.
-- Upon completion of the tie-in, commissioning and handover of
the pipeline, Coho natural gas production will commence with the
expectation that production will increase over time to 10 MMcf/d
(1,667 boe/d) gross, 8 MMcf/d (1,333 boe/d) net.
-- Coho will be the first onshore natural gas project to come
onstream in 20 years, representing an important milestone for both
Touchstone and the Republic of Trinidad and Tobago.
-- Based on the current contractor schedule and expected
pipeline commissioning and handover process, we are targeting full
production in August 2022.
Cascadura
-- Workstreams across the Cascadura area are progressing with
several important deliveries, including the separators and vapour
recovery units, scheduled to arrive in Trinidad in the coming
weeks.
-- Surveying of the lease expansion, pipelines, roads, and
future drilling locations has commenced, along with the treatment
of drilling pits for reclamation.
-- Three major construction contracts for the Cascadura facility
have been procured to date with local contractors and are
consistent with our pre-design budget.
-- We continue to wait for the approval of the Environmental
Impact Assessment ("EIA"), with all the relevant reports and
information submitted for regulatory review. Following the
anticipated approval and submission of the required notice periods,
we intend to proceed with construction of the surface facility,
access roads, liquids pipeline and future development drilling
locations. The onstream date of the Cascadura facility will be
determined by the timing of receipt of the EIA approval.
-- Initial gross aggregate natural gas and associated liquids
production from our Cascadura-1ST1 and Cascadura Deep-1 wells has
been budgeted at 11,500 boe/d (9,200 boe/d net), and the Cascadura
natural gas processing facility has been designed for a maximum
gross capacity of approximately 200 MMcf/d of natural gas and 5,000
bbls/d of associated liquids (38,333 boe/d).
Drilling
-- The Royston surface equipment has been repositioned to
accommodate the future sidetrack of Royston-1 to test the
intermediate and subthrust sheets of the Herrera Formation.
-- Upon approval of the Cascadura EIA, an additional drilling
pad at Cascadura will be constructed to accommodate the first two
future budgeted development wells.
-- The timing of our future Ortoire drilling program will be
evaluated once Coho is on optimal production and we have received
approval of the Cascadura EIA.
Environmental Incident
On Wednesday, June 22, 2022, an oil transfer line on our Fyzabad
block was cut. We have determined that the cut line was an act of
vandalism, and the local police and all relevant in-country
authorities have been notified. Based on current information, we
estimate that approximately 250 barrels of oil was released. No
personal injuries were reported, and reclamation efforts are
underway. All impacted residents are being assisted while cleanup
activities are conducted. Touchstone has engaged a contractor to
monitor air quality across the affected area, and the return of
residents to their homes will be guided by the ongoing test
results. We will continue to support those affected during the
duration of the cleanup and reclamation and do not expect a
material impact to our base production expectations as a result of
this matter.
Paul Baay, President and Chief Executive Officer, commented:
"We are pleased that we are nearing completion of the Coho
project. We are currently focused on the final phase which is the
tie-in at the Central block. The components required for the
assembly have been designed and fabricated in Trinidad and are
onsite being installed by a local contractor. Following
installation, the assembly will require testing and commissioning
prior to first gas, with production volumes expected to double our
current production on a boe basis. Concurrently, there has been
consistent activity at Cascadura while we await receipt of the EIA
approval. We would like to thank our stakeholders for their
continued patience, and we look forward to updating the market in
due course."
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)
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
are not limited to, statements relating to Touchstone's development
and exploration plans and strategies, including anticipated
production timelines, forecasted initial production rates derived
from previous well production tests, anticipated pipeline and
facility construction, including designed production capacity and
the timing of completion, the expectation of regulatory approvals
and timing thereof, the Company's future allocation of capital and
future drilling plans, the Company's base production expectations,
and Touchstone's current and future financial position including
the sufficiency of resources to fund future capital expenditures.
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 2021 Annual Information Form dated March
25, 2022 which is available under the Company's profile on SEDAR (
www.sedar.com ) and on the Company's website (
www.touchstoneexploration.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 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
boe barrels of oil equivalent
boe/d barrels of oil equivalent per day
MMcf/d million cubic feet per day
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