TIDMTXP
RNS Number : 6710D
Touchstone Exploration Inc.
11 October 2018
OPERATIONAL UPDATE
Touchstone continues to grow as it hits initial production
milestone of 2,000 bbls/d
Calgary, Alberta - October 11, 2018 - Touchstone Exploration
Inc. ("Touchstone" or the "Company") (TSX / LSE: TXP) announces an
operational update.
Highlights
-- Delivered average field estimated crude oil production for
the first nine days of October 2018 of 2,015 barrels per day
("bbls/d").
-- Achieved average third quarter 2018 crude oil production of
1,758 bbls/d, a 22% increase relative to the 1,437 bbls/d produced
in the prior year comparative quarter.
-- Drilled eight wells of the Company's expanded 14 well 2018
development drilling campaign, all of which are currently on
production.
-- Commenced pre-drilling operations on four wells of the 2018 program.
-- Extended our Fyzabad exploration and production licence to August 19, 2032.
-- Identified five additional exploratory drilling prospects on
our Ortoire exploration block, bringing the total to eleven
prospective locations.
The first eight wells of the 2018 drilling campaign are
currently producing a combined October 2018 field estimated average
rate of 454 bbls/d. The Company is currently optimizing production
on four of the eight wells.
Forest Reserve WD-8 Block
FR-1792 and FR-1793 continue to be optimized following their
initial May 2018 completions. FR-1792 was placed on pump on October
2, 2018 and is producing at a field estimated rate of 85 bbls/d.
The well has averaged 110 bbls/day and produced approximately
16,900 barrels of crude oil since being placed on production in
early May. FR-1793 was placed on pump on July 26, 2018. The Company
has since optimized the well, increasing the field estimated
production rate from 39 bbls/d to 72 bbls/d.
The FR-1795 well was spud on August 18, 2018 and reached a total
depth of 4,700 feet on September 6, 2018. Wireline logs indicated
the presence of approximately 229 feet of oil pay, 94 feet in the
Forest formation and 135 feet in the Cruse formation. The well was
completed on September 19, 2018 and is currently flowing up casing
at a field estimated average rate of 36 bbls/d. The well is
expected to be put to pump in the next ten days subject to rig
availability.
Grand Ravine WD-4 Block
PS-602 was producing at a rate of 46 bbls/d before being
optimized on August 26, 2018 through the comingling of a secondary
zone. This optimization has resulted in a stabilized current field
estimated rate of 72 bbls/d.
Coora 2 Block
The sands of the Upper Cruse formation have not proven to be
economic based on initial testing with high gas rates being
observed in CO-370 and limited inflow observed in CO-371. The
Company has applied to move uphole to the Forest formation in both
wells and will commence operations once customary regulatory
approvals are obtained.
Coora 1 Block
CO-372 is currently producing on pump at a field estimated rate
of 137 bbls/d. CO-372 has produced approximately 5,500 barrels of
oil since being placed on production on August 18, 2018.
CO-373 is producing on pump at a current field estimated rate 50
bbls/d. The well has experienced high volumes of gas, which have
restricted the pumps ability to operate at full capacity. New
downhole equipment is expected to be installed to accommodate the
higher gas volumes.
Remaining 2018 drilling program
The Company has drilled eight wells to date and anticipates
drilling the remaining six wells of its 2018 drilling budget prior
to year-end.
We expect to spud the ninth well of our 2018 drilling program by
mid-October on the WD-8 block. Thereafter, the rig is expected to
move to a second surface location on WD-8 which is currently in the
final stages of preparation. From this single surface location, the
Company plans to drill two wells targeting newly identified fault
blocks in the Cruse formation.
We are currently preparing a lease on our WD-4 property along
with two drilling locations at South Palo Seco. The WD-4 location
is a follow-up to the PS-602 location drilled earlier this year.
The South Palo Seco locations are two commitment wells that are
expected to be drilled to approximately 1,200 feet each.
Licence extension
The Company received an extension of its Fyzabad exploration and
production licence for an additional 14 years to August 19, 2032.
The licence has no minimum work commitments, and the Company has
identified two infill drilling location on the property.
Ortoire Block
We have identified seven potential drilling locations on
individual prospects within the exploration property along with
four additional follow-up opportunities. The Company has received
certificates of environmental compliance on four of the 11
locations and is proceeding with applications on the remaining
prospects.
Paul Baay, President and Chief Executive Officer, commented:
"I am pleased to report that we have exceeded our near-term
production target of 2,000 barrels per day. The team has
established a solid production base with our focus now on the six
additional wells that we expect to drill prior to year-end. With
the majority of our drilling obligations satisfied, the advantage
of having our large diversified asset base allows us to focus on
the assets that provide the greatest shareholder returns. We
continue to refine exploration prospects on our Ortoire property
and are very excited about its future developmental potential."
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 Advisor: Edward Mansfield / Mark Percy / Daniel Bush 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 quality and quantity of prospective
hydrocarbon accumulations as indicated by wireline logs, the
potential undertaking, timing, locations, production rates and
costs of future well drilling, completion and exploration
activities, and sufficiency of resources to fund future drilling
and completion 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 December 31, 2017
Annual Information Form dated March 26, 2018 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
Geologists 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 news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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