Touchstone Explrtn. (TSX:LON:TXP) Cascadura-1ST1 well – Gas Discovery

Touchstone Exploration Inc. (“Touchstone”, “we”, “our”, “us” or the “Company”) (TSX, LSE: TXP) announces that flowback testing of the first stage of the Cascadura-1ST1 well has been completed, confirming that the well is a significant liquids-rich natural gas discovery.

Highlights

· Cacadura-1ST1 production testing commenced on February 4, 2020, with the first stage testing the lowermost 162 feet of a total of 777 feet of identified pay in the Herrera formation.

· Average flowback rate during the final 14-hour test period was 5,180 barrels of oil equivalent per day (“boe/d”), including 26.9 million cubic feet per day (“MMcf/d”) of natural gas and 694 barrels per day (“bbls/d”) of natural gas liquids.

· Peak flowback rate of 5,736 boe/d, including 30.2 MMcf/d of natural gas and 710 bbls/d of natural gas liquids.

· A total of 28.6 million cubic feet of gas (4,770 barrels of oil equivalent) and 680 barrels of natural gas liquids were produced during the testing period.

· Field analysis indicated liquids-rich gas with no hydrogen sulfide and no produced water.

· The well is expected to be shut-in for a two-week pressure build-up test, following which we anticipate completing and testing an additional 450 feet of identified pay.

 

 

Paul Baay, President and Chief Executive Officer, commented:

“The Cascadura production test results represent a dramatic change for Touchstone, as it confirms the monumental resource potential of the Ortoire exploration block following the earlier success of our Coho-1 well. Furthermore, the test results are only attributable to the lowermost portion of the well, and with 450 feet of contiguous sand to be tested, the full potential of the structure is yet to be defined.

To put these results in context, our average daily oil production for the three months ended September 30, 2019, was 1,729 bbls/d. The modelling from the final test results at Coho-1 supports initial gross production rates between 10 to 12 MMcf/d per day (approximately 1,667 to 2,000 boe/d) with Cascadura now set to provide a further step-change. Given these results, the Company will focus on multiple tie-in scenarios in order to maximize economic value. The Ortoire exploration block continues to consistently and dramatically outperform expectations and presents an exciting new opportunity for both Touchstone and the onshore oil and gas industry in Trinidad.”

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Cascadura-1ST1 Testing

As previously announced, the Cascadura-1 exploration well on the Ortoire exploration block, onshore in the Republic of Trinidad and Tobago (Touchstone 80% working interest operator, Heritage Petroleum Company Limited 20% working interest) was sidetracked (ST1) and drilled to a total depth of 6,350 feet. Cased hole wireline logs and drilling samples indicated approximately 1,037 feet of prospective hydrocarbon pay in the Cruse and Herrera formations at depths between 1,030 and 6,350 feet. The first stage of the initial production test of the Cascadura-1ST1 well was designed to evaluate the lowest 162 feet of prospective pay found in the Herrera Gr7c and Herrera Gr7a formations between 6,056 and 6,218 feet. This interval was completed on January 17, 2020, and testing was suspended due to high pressures and natural gas volumes encountered on the clean-up flow.

The Company subsequently mobilized an international well testing company to assist in the evaluation of the high-pressure natural gas well. Natural gas production testing commenced on February 4, 2020, with flow tests spanning a total of 36 hours, comprised of an initial clean-up flow period, followed by an initial shut-in period and a four-step rate test, including a final 14-hour extended flow test.

Cascadura-1ST1 achieved a peak production rate in excess of 5,736 boe/d during the extended flow test period. This production rate included 30.2 MMcf/d of natural gas and 710 bbls/d of natural gas liquids. The flowing pressure of the well during this stage of testing was 3,305 psi through a 40/64″ choke. During the final 14-hour extended flow test period, the well averaged a production rate in excess of 5,180 boe/d including 26.9 MMcf/d of natural gas and 694 bbls/d of natural gas liquids. The flowing pressure of the well during this test period was 3,319 psi through a 40/64″ choke, resulting in an estimated 20% drawdown. A total of 28.6 million cubic feet of natural gas (4,770 barrels of oil equivalent) was produced during testing, with 680 barrels of natural gas liquids and 38 barrels of water.

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During the final extended flow test, Cascadura-1ST1 yielded an average of 54° API natural gas liquids at a ratio of approximately 26 barrels of free natural gas liquids per million cubic feet of natural gas produced. Field analysis of the produced gas indicated liquids-rich natural gas with no hydrogen sulfide content. Additional testing of fluid samples will be conducted to accurately assess the gas and associated liquids composition.

The well is now expected to be shut-in for an extended pressure build-up survey. This build-up period is anticipated to take two weeks, after which the Company plans to complete and test the second stage of the Herrera Gr7bc formation targeting approximately 450 feet of pay immediately above the first test interval.

James Shipka, Chief Operating Officer, commented:

“The exceptional performance of the initial Cascadura test demonstrates the tremendous potential of the high-quality Herrera turbidites on the Ortoire block. The Coho and Cascadura discoveries have proven our turbidite model and indicate that the main sand fairway extends through a large portion of the Ortoire block. These discoveries provide further confidence as we move forward with two further exploration wells at our Chinook and Royston prospects which are targeting separate structures along with the same geological trend.”

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”.


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