CALGARY, AB, Oct. 29, 2020 /CNW/ - Touchstone Exploration
Inc. ("Touchstone", "we", "our", "us" or
the "Company") (TSX: TXP) (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".
Forward-Looking Statement Advisory
Certain information provided in this news release may constitute
forward-looking statements within the meaning of applicable
securities laws. Forward-looking information in this news release
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 and timing 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 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.
SOURCE Touchstone Exploration Inc.