Touchstone Exploration Inc (AIM:TXP, TSX:TXP, OTC:PBEGF) has notably increased its financial leverage to initiate the next phase of drilling at the prolific Cascadura field in Trinidad.
The company informed stakeholders that its financial capacity has been boosted by approximately $13 million. This enhancement comprises a new $10 million five-year banking loan and a $3 million augmentation of its existing revolving credit facility, which now extends from $7 million to $10 million.
This financial augmentation is aimed at underpinning the 2024 capital initiative, which encompasses drilling new wells to augment production levels.
Touchstone has also commenced drilling at the Cascadura and CO-1 fields. Current operations include the drilling of the Cascadura-3 and CO-374 wells.
The CO-374 well, which began drilling on February 28, targets oil-rich sands within the Cruse and Forest formations. The drilling is planned to reach a total depth of 6,600 feet.
The Cascadura-3 well, initiated on March 1 at the Cascadura C site within the Ortoire block, aims to tap into gas-rich sands in the Herrera formation, situated northeast of the recently drilled Cascadura-2 well. The expected drilling depth for this well is around 7,000 feet.
Furthermore, Touchstone has successfully completed casing the Cascadura-2 well despite encountering challenges due to high gas pressures causing wellbore instability, necessitating a sidetrack of part of the well. Concurrently, the company is focusing on adding necessary infrastructure to connect the Cascadura-2 well to the Cascadura natural gas facility.
Additionally, Touchstone plans to prepare the Cascadura B site for the drilling of up to four development wells.
