CALGARY, AB, Dec. 6, 2021 /CNW/ - Touchstone Exploration Inc.
("Touchstone", "we", "our", "us" or the "Company") (TSX: TXP)
(LSE: TXP) is pleased to provide an update on the results of the
first production test at our Royston-1 exploration well and provide
data from the second test, both of which confirmed separate light
oil discoveries.
As previously released, the first and deepest Royston-1
completion and exploration test was designed to evaluate an
interval at the bottom of the well in the intermediate sheet of the
Herrera Formation. The completion spanned a 92-foot gross interval
(30 feet of net pay) below 10,434 feet that was identified on
wireline logs as being hydrocarbon bearing. Following completion
and a brief clean-up period to recover load fluid, the well was
shut in and built to a pressure of 3,150 psi at surface (estimated
7,100 psi reservoir pressure). The interval was subsequently flowed
up 3.5-inch tubing on a variety of choke sizes between 16/64 inches
and 40/64 inches at rates up to 550 bbls/d. The recovered oil was
light, sweet crude with an average 33-degree API (corrected to
60-degree Fahrenheit) with sampling throughout flow testing
indicating an average 94% oil cut with some solution gas present
but not measured. The configuration of the downhole assembly was
not optimal for testing light oil given it was designed to test a
potential liquids rich gas interval.
While we worked to suspend the initial production test to move
uphole for the second test, the well continued to flow significant
volumes of crude oil at high pressure from the intermediate sheet,
and heavy weight mud was required to control the well before
proceeding.
We completed our second production test in the lowermost portion
of the overthrust sheet at depths between 9,878 and 10,148 feet
with a gross 270 feet of section perforated (202 feet of net pay).
Test two has established a light oil reservoir in the overthrust
sheet of the Herrera Formation with flow rates of up to 430 bbls/d
of total fluid observed. Testing indicated light, sweet crude oil
with an average 30-degree API (corrected to 60-degree Fahrenheit),
while build-up testing indicated a bottomhole reservoir pressure of
7,098 psi. Solution gas was also present on the test but was not
measured.
The downhole assembly for the test was designed for a liquids
rich natural gas test and again included the use of 3.5-inch tubing
which was not ideal for the actual conditions encountered following
completion. Unlike results from the first production test, during
the second test the lower portion of the overthrust sheet produced
with high water cuts averaging 90% throughout the flow test. We
designed the completion with multiple intervals where production
can be isolated and, in the future if a smaller tubing string is
employed, we can segregate the interval to maximize crude oil
production.
Paul Baay, President and Chief
Executive Officer, commented:
"We are excited to announce this further, large oil discovery
at Royston-1. The results are the reason why we find the geology in
Trinidad's hydrocarbon charged
basin so exciting. This oil discovery will allow us greater
flexibility for the pace of development of the project, as we have
the opportunity to design production facilities while we are
selling crude oil testing volumes.
I would encourage stakeholders to view our latest corporate
presentation to fully understand the areal extent of the Royston
structure and its potential. The presentation also provides a
glimpse at the underlying Cretaceous exploration opportunity. We
now have an exciting development project along with the upside from
the remaining exploration in the subthrust sheet and the
Cretaceous. Once we have completed the final production test at
Royston-1, we intend to work to formulate a long term development
plan, which is anticipated to include a number of wells and
associated facilities."
Touchstone has now suspended the second test interval and is
moving uphole to the third production test which will complete the
upper most portion of the overthrust sheet. We have redesigned the
third test in anticipation of a liquids test and will be using an
idealized 2 7/8-inch tubing string to provide the opportunity to
conduct a longer-term production test. We have also designed the
program such that, if the final test is successful, the test two
and test three intervals can be combined to complete a long-term
production test from the entire overthrust sheet. During testing,
oil volumes are being trucked to one of our existing sales
facilities.
In the future we envision two additional wells to be drilled
from the existing Royston surface location subject to required
approvals. The prospects include Royston
Deep-1, which will evaluate the entire Herrera section. As
an exploration well, Royston Deep-1
would seek to establish the base of the oil zone in the
intermediate thrust sheet as well as investigating the underlying
subthrust Herrera reservoir. The second exploration prospect,
Kraken-1, is targeting the deep Cretaceous turbidite sands.
James Shipka, Chief Operating
Officer, commented:
"Trinidad continues to
provide us with rich hydrocarbon opportunities as is evident from
the latest test results at Royston. The unique opportunity at
Royston is that we can design a production profile from day one
that includes low emissions from reinjection of gas and/or produced
water to maintain reservoir pressure and enhance recovery factors.
We really do have two distinctly different oil plays to exploit in
both the intermediate and overthrust sheets of the Herrera, and
based on analogous pool data, we have a template to optimize
production and recoveries.
Additional exploration opportunities, including the Royston
subthrust and the underlying Cretaceous prospects, provide exciting
future drilling inventories to be investigated as we work to bring
discovered reserves onto production. We are in an enviable position
of having a multi-year exploration and development program ahead of
us as we continue to grow in Trinidad."
Information Regarding the Offsetting Penal-Barrackpore
Pool
The offsetting Penal-Barrackpore Herrera trend is located
approximated 23 kilometres west of Royston and represents one of
the largest known oil accumulations in southern Trinidad. Discovered in 1939, the Herrera
sands in the trend are anticipated to recover up to 129 million
barrels of 25 to 56-degree API oil and condensate along with over
600 Bcf of associated natural gas. The pools in the
Penal-Barrackpore trend have hydrocarbon accumulations in the
overthrust, intermediate, and subthrust sheets at depths between
6,000 and 10,000 feet and pressures between 3,900 and 6,900 psi,
which is consistent with what we have observed in Royston and elsewhere in the Ortoire block. To
date, based on available information, the overthrust sheet has
produced over 31 million barrels of oil; the intermediate sheet has
produced over 23 million barrels of oil; the subthrust has produced
approximately 19 million barrels of oil; and all three sheets
continue to produce today. Water cuts throughout Penal-Barrackpore
range from zero to over 95% with the average water cut being
between 30% and 40%.
Touchstone's updated corporate presentation is available on our
website (www.touchstoneexploration.com).
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".
Advisories
Forward-Looking Statements
Certain information provided in this news release 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 news release may
include, but is not limited to, statements relating to the quality
and quantity of prospective hydrocarbon accumulations; well test
results and the Company's interpretation thereof; and the Company's
exploration plans and strategies, including anticipated drilling
targets, receipt of regulatory approvals, 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 news
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.
Information contained herein concerning the Penal-Barrackpore
pool in Trinidad was based on data
from publicly available industry sources as well as from resource
reports, market research and industry analysis which the Company
believes to be reasonable. However, this data is inherently
imprecise, although generally indicative of relative oil and gas
reservoir and performance characteristics. While the Company is not
aware of any material misstatements regarding any industry data
presented herein, the oil and natural gas industry involves
numerous risks and uncertainties, and data is subject to change
based on various factors.
Oil and Gas Matters
References in this news release 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
|
Bcf
|
billion cubic
feet
|
API
|
American Petroleum
Institute gravity
|
psi
|
pounds per square
inch
|
SOURCE Touchstone Exploration Inc.