TIDMTXP
RNS Number : 9450B
Touchstone Exploration Inc.
16 January 2018
OPERATIONAL UPDATE
Calgary, Alberta - January 16, 2018 - Touchstone Exploration
Inc. ("Touchstone" or the "Company") (TSX / LSE: TXP) announces the
following operational update.
Highlights
-- Achieved November and December 2017 crude oil sales of 1,536
and 1,337 barrels per day ("bbls/d"), respectively.
-- Realized average prices of US$56.54 per barrel and US$57.18
per barrel for November and December crude oil volumes,
respectively.
-- Production from the four wells drilled in 2017 remained
strong, contributing an average of 283 bbls/d to November and
December 2017 production.
-- Preparation of the initial four 2018 drilling program
locations has commenced; the first well is expected to spud on or
about January 22, 2018.
-- Current field estimated production is approximately 1,492
bbls/d (based on the previous seven-day average).
Production
Touchstone's November and December 2017 crude oil production
averaged 1,435 bbls/d. December sales volumes were lower based on
an inventory build of approximately 2,800 barrels that is expected
to be monetized subsequent to year-end.
Average production for the fourth quarter of 2017 was 1,448
bbls/d, representing an increase of 1 percent from the third
quarter of 2017 and 16 percent from the prior year comparative
period. Realized fourth quarter 2017 pricing for crude oil was
US$54.83 per barrel, which represented an increase of 15 percent
from the US$47.53 per barrel received in the third quarter of
2017.
On an annual basis, average crude oil production in 2017 was
1,375 bbls/d, a 6 percent increase from 1,301 bbls/d produced in
2016. Touchstone's 2017 realized average price of US$49.18 per
barrel was 29 percent greater than the average of US$38.10 received
in 2016.
Drilling
Touchstone is currently constructing four surface locations to
accommodate the Company's first five wells planned for 2018 with
construction of the first three locations expected to be completed
by the end of January 2018. The wells will be drilled on a fixed
cost basis using local equipment and personnel.
Touchstone has successfully contracted a second drilling rig to
accelerate the drilling program. Operations are expected to begin
on the Grande Ravine WD-4 block with the drilling of a 5,800-foot
development location with the second rig targeting a 4,700-foot
development location on the Forest Reserve WD-8 block. Thereafter,
the Company plans to drill one additional well at WD-8 and two
wells from a single surface location on its Coora 2 property.
Touchstone is at various stages of preparing and receiving approval
for the second five wells of the 2018 program; the Company expects
to commence operations immediately following the drilling of the
Coora 2 wells.
James Shipka, Chief Operating Officer, said:
"I am pleased to report today's operational update that has seen
the Company continue to deliver positive results, as witnessed by
the 16% year over year production growth. We are excited to
announce the start of our 2018 drilling program following the
recent successful fundraise in December, a program that gives
Touchstone significant momentum in the market as we enter an
ambitious growth period for the Company in 2018."
Operations
The Company completed five recompletions in December 2017,
bringing the total number of recompletions performed in 2017 to 20.
The recompletions were perforated prior to year-end; however, the
incremental production impact will not be realized until the end of
January once all load fluids have been recovered and production has
stabilized. The Company is targeting to perform 24 recompletions in
2018.
For further information, please contact:
Touchstone Exploration Inc.
Mr. Paul Baay, President and Chief Executive Officer Tel: +1
(403) 750-4487
Mr. James Shipka, Chief Operating Officer
www.touchstoneexploration.com
Shore Capital (Nominated Advisor and Joint Broker)
Nominated Adviser: Edward Mansfield / Mark Percy Tel: +44 (0) 20
7408 4090
Corporate Broking: Jerry Keen
GMP FirstEnergy (Joint Broker)
Jonathan Wright / Hugh Sanderson Tel: +44 (0) 207448 0200
Camarco (Financial PR)
Nick Hennis / Jane Glover / Billy Clegg Tel: +44 (0) 203 757
4980
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 announcement may constitute
forward-looking statements within the meaning of applicable
securities laws. Forward-looking information in this announcement
may include, but is not limited to, statements relating to current
field estimated production, the estimated amount and timing of
incremental production from well recompletions, and the potential
undertaking, timing, locations and costs of future well drilling
and recompletions. 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 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.
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 member of The Canadian Society of Petroleum
Geologist 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 29 years of oil and gas exploration and
development experience.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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