Touchstone Provides Operational Update
November 28 2017 - 1:01AM
Touchstone Exploration Inc. (“Touchstone” or the “Company”)
(TSX:TXP) (LSE:TXP) is pleased to provide the following operational
update.
Highlights
- Achieved September 2017 and October 2017 crude oil sales of
1,369 and 1,472 barrels per day (“bbls/d”), respectively.
- Production from the four wells drilled in 2017 remains strong,
contributing an average of 299 bbls/d during September and October
2017.
- The Company has commenced preparation of the drilling locations
of its next four wells. Drilling is expected to commence in January
2018 and will be funded by existing cash on hand.
- The Company’s surface water disposal project on its Fyzabad
property continues to move forward, as Touchstone expects to drill
two shallow monitoring wells in the fourth quarter of 2017 and
anticipates the injection of produced water in the first quarter of
2018.
Production
Touchstone’s September and October 2017 crude
oil production averaged 1,421 bbls/d. The Company’s current field
estimated production is approximately 1,472 bbls/d (based on the
previous seven-day average).
Coora 1 Block
The CO-368 well has been producing for 165 days
from 41 feet of net oil sand in the Cruse Formation. The well has
produced approximately 9,520 barrels of oil during that period, an
average of 58 bbls/d. The well remains on pump and current field
estimated production is approximately 55 bbls/d.
CO-369 was placed on production on June 23, 2017
with a total of 71 feet of net oil sand perforated in the Cruse
Formation. The well has produced an average daily oil production
rate of 181 bbls/d over its first 156 days. The well is currently
pumping and current field estimated production is 201 bbls/d.
Grand Ravine WD-4 Block
The PS-598 well has encountered higher than
expected water cuts but continues to flow with significant
reservoir pressure. Due to the significantly higher volumes and
pressure, production from the well has been deliberately curtailed
due to surface facility constraints. The well has produced
approximately 2,760 barrels of oil in 124 days, representing an
average of 22 bbls/d. Surface upgrades are expected to be complete
in the next 30 days, following which the Company will increase the
well flow rate to maximize oil production. Current production from
this well is approximately 26 bbls/d from 15 feet of net oil
sands.
The PS-599 well has produced approximately 5,177
barrels over its first 122 days of production, an average of 42
bbls/d. The well has produced at less than a two percent water cut,
however production appears to be hampered by near well bore damage.
Current production is 19 bbls/d with indications that formation
damage from drilling fluids may be inhibiting inflow. The Company
is working to optimize production from this initial 40-foot net
interval and is evaluating several options including a solvent
squeeze or fracture stimulation.
Drilling Program
As previously announced, Touchstone is
proceeding to drill the next four wells in the Company’s drilling
inventory with preparation currently underway on three surface
locations.
Two wells will be drilled on the Forest Reserve
WD-8 block, targeting sands in the Lower Cruse Formation at
approximately 4,700 feet. The wells will be drilled from individual
surface locations with accommodations being made for future
drilling at each location. The wells will be targeting deeper
reserves in a relatively undrained fault block. Oil sands are
anticipated in the Upper and Lower Forest Formations, as well as
the Upper, Middle and Lower Cruse Formations.
Two wells will be drilled on the Coora 2 block
from a single surface location with downhole targets in two
separate fault blocks. The primary target in both wells are oil
sands in the Lower Forest Formation, however both wells will be
drilled to investigate potential reserves identified in the Upper
Cruse Formation at depths of less than 4,000 feet. These two wells
will complete the Company’s minimum work obligations on the Coora 2
block for the period ending December 31, 2020.
As with the first four wells drilled in 2017,
the Company is awarding the drilling of these wells to a local
drilling company on a “turn key” basis. The first four wells of
2017 were drilled at a cost of less than US$200 per foot, an
approximate 41% reduction versus the Company’s previous drilling
campaign in 2014. Quoted costs for the next four wells reflect a
further reduction in per foot drilling costs of approximately
18%.
James Shipka, Chief Operating Officer,
said:
“Production from the Company’s 2017 drilling
program continues to exceed expectations and we are looking forward
to returning to the field to drill the next four wells. We will
continue to execute our strategy of drilling deeper in established
pools, an approach which we plan to utilize in evaluating all of
our future drilling prospects.”
Water Disposal
Touchstone remains dedicated to implementing
best practices regarding produced water handling on all of its
producing properties. Trinidad’s first produced water disposal
project was approved on the Company’s Fyzabad block earlier in 2017
and the Company expects to begin disposing produced water in the
well in the first quarter of 2018 following the drilling of two
shallow (200 feet) monitoring wells.
Touchstone is planning to conduct an injectivity
test of a well on its Grand Ravine WD-4 property prior to year-end.
The Company looks forward to expanding its water disposal program
throughout its operations in 2018.
Paul Baay, President and Chief Executive
Officer, commented:
“Corporate social responsibility is very
important to Touchstone and two of the major items we focus on are
the environment and the health of our employees and their families.
The Fyzabad water injection project marks our first steps towards a
goal of zero surface water release by the end of 2019 and shows our
dedication to being a local leader in environmental
stewardship.”
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 press
release may constitute forward-looking statements within the
meaning of applicable securities laws. Forward-looking information
in this press release may include, but is not limited to,
statements relating to current field estimated production, and the
potential undertaking, timing and costs of future well drilling and
water disposal 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 press release 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.
Contact
Mr. Paul Baay, President and Chief Executive
Officer; orMr. James Shipka, Chief Operating Officer Telephone:
403.750.4487www.touchstoneexploration.com
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