CALGARY, AB, Dec. 21, 2021 /CNW/ - Touchstone Exploration
Inc. ("Touchstone", "we", "our", "us" or the "Company") (TSX:
TXP), (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
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".
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, 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 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.
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.
Petroleum Institute gravity
per square inch
SOURCE Touchstone Exploration Inc.