CALGARY, AB, June 15, 2020 /CNW/ - Touchstone Exploration Inc.
("Touchstone", "we", "our", "us" or the "Company") (TSX,
LSE: TXP) is pleased to announce final production test results from
the Cascadura-1ST1 well on the Ortoire exploration block. The final
test results for both the lower test (6,056 to 6,218 feet) and the
upper test (5,570 to 5,915 feet) have been reviewed by the
Company's independent reserves evaluator, GLJ Ltd. ("GLJ"), and the
following information is intended to complement initial production
test results previously released by on February 6, 2020 and March
11, 2020.
Highlights
Upper test
- Flow and buildup test results suggest an Absolute Open Flow
("AOF") natural gas rate of 390 million cubic feet per day
("MMcf/d") at the sandface.
- Final 24-hour extended flow test rate, limited by capacity of
surface test equipment, averaged 5,472 barrels of oil equivalent
per day ("boe/d"), 86% natural gas, at a final sandface drawdown of
4%. Pressure data suggests that the well was still cleaning up at
the end of the extended test period.
- Condensate Gas Ratio ("CGR") was 28 barrels of 55° API
condensate per million cubic feet of natural gas produced
("bbls/MMcf") during the extended flow test.
Lower test
- Flow and buildup test results suggest an AOF natural gas rate
of 92 MMcf/d at the sandface.
- Final 24-hour extended flow test rate, limited by the capacity
of surface test equipment, averaged 5,157 boe/d, 87% natural gas,
at a final sandface drawdown of 12%. Pressure data suggests that
the well was still cleaning up at the end of the extended test
period.
- CGR was 26 bbls/MMcf of 55° API condensate during the extended
flow test.
Analysis
- Gas analysis indicated sweet, liquids rich natural gas with no
hydrogen sulfide and no entrained water.
- Based on the data obtained during both tests, the
Cascadura-1ST1 reservoir appears to be unbounded within the area of
investigation, confirming a larger pool than originally
anticipated.
- Absolute Open Flow Potential ("AOFP") modelling indicates that
it is reasonable to design for an initial gross production rate of
between 7,750 and 9,700 boe/d (6,200 to 7,760 boe/d net) based on
estimated gross rates of 40 to 50 MMcf/d of natural gas and 1,100
to 1,400 boe/d of condensate.
James Shipka, Chief
Operating Officer, commented:
"We are extremely pleased with the final testing data
and GLJ's independent analysis of the stage one and stage two
information, as both confirm the tremendous potential of the
Cascadura-1ST1 discovery. The low sandface drawdown, high
reservoir pressure, and rapid recovery suggest a sizeable reservoir
with excellent production potential. With minimal drawdown
observed while flowing and with no boundaries seen in the analysis,
the pressure data confirms that the Cascadura pool is larger than
the area of investigation observed during the tests. On this
basis, we will likely require additional drilling and production at
Cascadura to fully understand and optimize production from the
structure. We are now working with GLJ to complete an independent
reserves evaluation for the Cascadura feature, which we expect in
July. The evaluation will use the test data along with
wireline logs, analogous pool data, offset production and seismic
to properly assign reserves to the pool.
The team remains on course to begin drilling at our next
prospect, Chinook, in July, where we are keen to explore a separate
structure along the same geological trend. With several near-term
catalysts for the Company, now is an exciting time for Touchstone,
and we look forward to updating all our stakeholders in due
course."
As previously announced, the Cascadura-1ST1 exploration well
onshore in the Republic of Trinidad and
Tobago (Touchstone 80% working interest operator, Heritage
Petroleum Company Limited 20% working interest) encountered
substantial volumes of liquids rich natural gas in two sand
packages in the Herrera Gr7b formation with a total combined
thickness in excess of 777 feet. Evaluation of these sands was
undertaken in two stages with the first test evaluating 162 feet of
pay in the lowermost section of the wellbore and the second test
evaluating 345 feet of pay in the uppermost section of the
wellbore.
Lower Stage One Testing
During the 24-hour extended flow test of the lower interval
(6,056 to 6,218 feet), Cascadura-1ST1 averaged a production rate
26.8 MMcf/d of natural gas and an estimated 691 bbls/d of
condensate (5,157 boe/d, 13% liquids). In this final extended flow
test, the well yielded 55° API condensate at a ratio of
approximately 26 bbls/MMcf of natural gas produced. Laboratory
analysis of the produced gas indicated liquids rich natural gas
with no hydrogen sulfide content, no entrained water and no
solids.
Following flow testing, the well was shut in for an extended
pressure buildup survey which concluded on February 27, 2020. During the buildup period, the
Company observed bottomhole pressures returning to pre-test levels
of approximately 4,783 psi. Final downhole flowing pressure at the
end of the 24-hour flow test was 4,221 psi, indicating a sandface
drawdown of 12%. Flow and pressure buildup measurements were then
reviewed by GLJ as part of their pressure transient analysis
report. This data suggests an estimated sandface AOF rate of 92
MMcf/d. No physical boundaries were observed during the pressure
buildup test period, and no skin damage was visible at the
sandface. Pressure data suggests that the well was continuing to
clean up during the extended flow test.
Upper Stage Two Testing
Production testing of the upper interval (5,570 to 5,915 feet)
resulted in an average production rate of 28.1 MMcf/d of
natural gas and an estimated 783 bbls/d of natural gas liquids
(approximately 5,472 boe/d, 14% liquids). During the final extended
flow test, Cascadura-1ST1 yielded 55° API condensate at a ratio of
approximately 28 bbls/MMcf of natural gas produced. Laboratory
analysis of the produced gas indicated liquids rich natural gas
with no hydrogen sulfide content, no entrained water and no
solids.
Following flow testing, the well was shut in for an extended
pressure buildup survey which concluded on May 13, 2020. During this buildup period
Touchstone observed bottomhole pressures returning to pre-test
levels of approximately 4,728 psi. Final downhole flowing pressure
at the end of the 24-hour flow test was 4,550 psi, indicating a
final sandface drawdown of 4%. Flow and pressure buildup
measurements were reviewed by GLJ, indicating in an estimated
sandface AOF rate of 390 MMcf/d. No physical boundaries were
observed during the pressure buildup test period, and no skin
damage was visible at the sandface. Pressure data suggests that the
well was continuing to clean up during the extended flow
test.
Analysis of the data supports an initial gross production rate
of 40 to 50 MMcf/d with an estimated 1,100 to 1,400 bbls/d of
condensate (net production rate of approximately 6,200 to 7,760
boe/d). This initial estimated production rate is based upon the
AOFP modeling performed following analysis of the flow and buildup
pressure data. Touchstone will design the production and surface
facilities to meet these initial production capabilities. These
rates reflect the well production from the upper interval (test
two), with the lower interval (test one) initially isolated, as per
the current well configuration.
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".
Advisories
Forward-Looking Statements
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 with
respect to well test results; the Company's exploration plans and
strategies, including with respect to the anticipated development
and timing of the Cascadura-1ST1 well and ultimate production
therefrom; and the sufficiency of resources and available
financing to fund future completion operations. 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.
Oil and Gas Matters
References in this news release to production test rates and
initial flow rates are useful in confirming the presence of
hydrocarbons; however, such rates are not determinative of the
rates at which such wells will commence production and decline
thereafter and are not necessarily indicative of long-term
performance or of ultimate recovery. While encouraging, readers are
cautioned not to place reliance on such rates in calculating the
aggregate production for the Company.
Oil and Gas Measures
Where applicable, natural gas has been converted to barrels of
oil equivalent based on six thousand cubic feet to one barrel of
oil. The barrel of oil equivalent rate is based on an energy
equivalent conversion method primarily applicable at the burner
tip, and given that the value ratio based on the current price of
crude oil as compared to natural gas is significantly different
than the energy equivalency of the 6:1 conversion ratio, utilizing
the 6:1 conversion ratio may be misleading as an indication of
value.
SOURCE Touchstone Exploration Inc.