CALGARY, AB, March 31, 2021 /CNW/ - Touchstone Exploration
Inc. ("Touchstone", "we", "our", "us" or the "Company") (TSX:
TSP), (LSE: TXP) provides an update regarding exploration
operations on the Ortoire block, onshore Trinidad and Tobago (Touchstone 80% working
interest operator, Heritage Petroleum Company Limited 20% working
interest).
Highlights
- Completed and tested the third interval at Chinook-1
encountering 35 degree API gravity crude oil; further evaluation is
required to determine commerciality.
- All three Herrera thrust sheets in Chinook-1 encountered light
oil indicating the structure is predominantly oil charged.
- Chinook-1 will be placed on pump for an extended production
test to evaluate the reservoir and guide future development.
- The service rig is on location at Cascadura Deep-1 to complete
the lowermost gas zone in the Herrera overthrust sheet, which is
scheduled to be perforated within a few days.
Chinook-1 Production Testing
Touchstone is currently evaluating the third formation test at
Chinook-1, having completed the overthrust Herrera sheet in the
well on March 25, 2021, perforating
115 feet of the formation at depths between 8,320 and 8,435 feet.
The well accumulated pressure to 2,100 psi at surface immediately
after being completed, and flow back testing commenced on
March 27, 2021. The well recovered
load fluid with minor amounts of 35 degree API gravity oil and
formation water. Low flow back rates indicate that an artificial
lift is required to determine the wells' production potential. By
putting the well on pump, the Company can evaluate the
deliverability of the zone and assess possible formation damage
that may have occurred during drilling. Touchstone will commence
installation of the pumping assembly when the service rig has
completed current operations at Cascadura Deep-1.
Testing to date indicates the Chinook-1 well is in an oil window
of the Herrera fairway. Over the course of the next few months, the
Company will form a development plan for the oil encountered in the
exploration well with the focus on identifying locations in the
intermediate and overthrust Herrera sand sheets. Oil production
from the Herrera thrust sheets is common in Trinidad along the Herrera fairway. The
Penal-Barrackpore Herrera oil pools have cumulative production of
over 80 million barrels since their discovery in the 1960s.
Following the extended oil test, the Company may complete an
uphole shallow gas interval in the Cruse formation or test a
Karamat shale gas prospect that was encountered while drilling.
Paul Baay, President and Chief
Executive Officer, commented:
"This light oil discovery on the Ortoire property
provides another level of opportunity for the Company and is in
line with our original Chinook exploration model which indicated
the target was oil charged. While some shareholders may be
disappointed with oil findings, it is worth highlighting that our
view towards gas only evolved following our prolific gas discovery
at Cascadura, which is 1.5 kilometres to the north and in a
separate geological structure. The test results at Chinook are a
reminder that while these are independent exploration targets, the
Herrera sands have the potential for gas, light oil, or a
combination of hydrocarbons. We don't believe these results have
any correlation to the upcoming Royston well given the target is a separate
structure and in a different geological position."
Cascadura Deep-1 Production Testing
The Company is currently preparing to perforate the lowermost
section of the shallow overthrust Herrera sand in Cascadura Deep-1.
After the interval has been perforated, the Company expects to
perform a three-day flow back test followed by a minimum two-week
built-up test. Well test results will be disclosed upon
completion.
The Company completed testing a low resistivity zone in the
intermediate thrust sheet that showed elevated gas readings during
drilling. While indications of hydrocarbons were apparent while
drilling through this secondary interval, wireline logs indicated
low resistivity prompting the Company to test the interval to gain
a further understanding of reservoir characteristics. The primary
purpose of the test was to correlate reservoir salinities with
wireline log responses to define pay intervals during potential
development of the Cascadura Deep-1 structure. As expected, based
upon the low resistivity readings, the tested interval yielded
predominantly water with minor amounts of hydrocarbon emulsion and
was subsequently abandoned.
James Shipka, Chief Operating
Officer, commented:
"While we have waited for the required testing equipment to
come available, we took advantage of our time with the two
exploration wells to test a number of different concepts and have
added to our understanding of the Ortoire block. The information
gained over the last three months will be invaluable for
progressing our understanding of potential future locations. In the
near term, we remain focused on our gas test at Cascadura Deep and
bringing our first two wells, Coho-1 and Cascadura-1ST1, onto
production. Further testing at Chinook will continue as
necessary to evaluate the well and determine the best path forward
while construction at Royston
continues to move towards a spud date in the middle of the second
quarter."
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".
Advisories
Forward-Looking Statements
Certain information provided in this announcement 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 announcement may include, but
is not limited to, statements relating to the quality and quantity
of prospective hydrocarbon accumulations; well test results; the
Company's exploration plans and strategies, including anticipated
drilling, production testing, development, tie-in, facilities
construction, and 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 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.
SOURCE Touchstone Exploration Inc.
