TIDMTXP
RNS Number : 5922D
Touchstone Exploration Inc.
29 October 2020
OPERATIONAL UPDATE AND SPUDDING OF CASCADURA DEEP-1
CALGARY, ALBERTA (October 29, 2020) - Touchstone Exploration
Inc. ("Touchstone", "we", "our", "us" or the "Company") (TSX, LSE:
TXP) announces an operational update, highlighted by the spudding
of the Cascadura Deep-1 exploration well on the Ortoire onshore
exploration block (Touchstone 80% working interest operator,
Heritage Petroleum Company Limited 20% working interest).
Highlights
-- Cascadura Deep-1 was spudded on October 27, 2020 ahead of schedule.
-- Designing a production testing program for Chinook-1 that may
commence prior to the end of 2020.
-- Formal amendment for a nine-month extension of the
exploration phase of the Ortoire exploration and production licence
expected shortly.
-- Advanced negotiations of the natural gas sales agreement with
the National Gas Company of Trinidad and Tobago ("NGC").
-- Regulatory approvals pending to commence pipeline and surface
facility operations on the Coho-1 well.
Paul R. Baay, President and Chief Executive Officer,
commented:
"I am delighted to report that the team continues to push
forward with operations at Cascadura Deep-1 and Chinook-1 ahead of
schedule. While the pandemic has caused delays regarding the tie-in
of Coho-1, we are pleased to have received initial approvals for
the extension of the Ortoire licence, a recognition of the Trinidad
Government's commitment to this exploration program and a reward
for the recent exploration success that Touchstone has enjoyed.
This extension will provide us with the time required to drill an
additional well and complete the required seismic program in the
first half of 2021. I ask shareholders to continue to be patient
with us as we move forward and finalize the gas purchase agreement
with NGC, and I look forward to providing an update to the market
in due course."
Touchstone is pleased to announce that we have spudded the
Cascadura Deep-1 well ahead of schedule. We are currently drilling
the surface hole to a planned casing depth of 900 feet. The surface
location is on the same drilling pad as the previously drilled
Cascadura-1ST1 well with the bottom hole location anticipated to be
1,300 feet to the south east. The well is targeting three distinct
Herrera thrust sheets and is designed for a total depth of 10,600
feet. The current drilling plan is based on a 45-day drilling
schedule.
As a result of the advancement of the Cascadura Deep-1 well, the
Company is designing a program to commence testing of the Chinook-1
well prior to the end of 2020. The program includes coordinating
the mobilization of the test equipment and service rig to begin
testing immediately upon casing the Cascadura Deep-1 well. This
expectation is subject to a number of uncertainties, including
receipt of required regulatory approvals, weather, and drilling
operations at Cascadura Deep-1.
Touchstone has been formally notified by the Trinidad and Tobago
Ministry of Energy and Energy Industries that the exploration phase
of Ortoire exploration and production licence has been approved by
the government for a nine-month extension to July 31, 2021. In
addition, the Company's 2D seismic commitment has been reduced from
85-line to 20-line kilometres. In exchange for the extension and
seismic program reduction, the Company has agreed to drill an
additional well to a true vertical depth of 10,000 feet prior to
June 2021. The formal amending document has yet to be executed by
all participating parties.
The Company is awaiting final approval of the required
Certificate of Environmental Clearance to commence Coho-1 surface
facility operations, which is anticipated to be received by the end
of November. As a result of the COVID-19 pandemic, the process was
delayed due to community consultations that were required to be
performed on a one-on-one basis versus a traditional town hall
meeting format. Upon receipt of approval and the required notice
period, field operations are expected to begin within approximately
30 days. Touchtone has all of the required equipment in Trinidad to
mobilize and therefore expects first production from the Coho-1
well late in the first quarter of 2021.
The Company continues to negotiate the final details of the
natural gas sales agreement with NGC. The agreement, which includes
all future natural gas sales from the Ortoire block, is anticipated
to be executed prior to the end of the year.
James Shipka, Chief Operating Officer, commented:
"As we near the end of the first phase of our Ortoire
exploration drilling program, we are continuing to see the
tremendous potential of the block. Our subsurface team continues to
refine their geological and geophysical models based on the initial
success of our exploration program, and the Company is now building
a significant inventory of both development and exploration
locations on the property. With success at Coho, Cascadura, and now
Chinook, we have identified an inventory of up to ten development
wells offsetting our discoveries. At the same time, the team has
identified a further 21 exploration prospects on the block which
will represent our second phase of exploration at Ortoire."
An updated version of Touchstone's Corporate Presentation is
available on the Company's website.
Touchstone Exploration Inc.
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 " .
For further information about Touchstone, please visit our
website at www.touchstoneexploration.com or contact:
Touchstone Exploration Inc.
Mr. Paul Baay, President and Chief Executive Officer Tel: +1
(403) 750-4487
Mr. James Shipka, Chief Operating Officer
Shore Capital (Nominated Advisor and Joint Broker)
Nominated Advisor: Edward Mansfield / Daniel Bush / Michael McGloin Tel: +44 (0) 207 408 4090
Corporate Broking: Jerry Keen
Canaccord Genuity (Joint Broker)
Adam James / Thomas Diehl Tel: +44 (0) 207 523 8000
Camarco (Financial PR)
Nick Hennis / Billy Clegg Tel: +44 (0) 203 781 8330
Advisories
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 the
Company's expected extension of the Ortoire exploration licence;
its ongoing negotiations of the Ortoire natural gas sales agreement
and expected finalization thereof; the Company's exploration plans
and strategies , including with respect to receipt of required
regulatory approvals, future well drilling, well completions and
production testing, the timing and the potential commercial
production viability thereof; and the sufficiency of resources and
available financing to fund future exploration drilling,
completions, production testing operations and seismic program.
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 2019 Annual Information Form dated March
25, 2020 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.
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