CALGARY, March 14, 2019 /CNW/ - Touchstone Exploration
Inc. ("Touchstone" or the "Company") (TSX / LSE: TXP) announces an
operational update.
Highlights
- Achieved January and February
2019 crude oil sales of 1,994 and 2,179 barrels per day
("bbls/d"), respectively.
- Realized average prices of US$52.00 per barrel and US$56.84 per barrel for January and February
crude oil volumes, respectively.
- Current field estimated production is approximately 2,358
bbls/d (based on the previous seven-day average).
- Production from the 11 wells drilled in 2018 are currently
contributing an average of 993 bbls/d to current field estimated
production.
- Received Certificates of Environmental Compliance ("CEC") for
seven drilling locations on our Ortoire exploration property.
2018 Financial Results
The Company expects to release financial results for the three
months and year ended December 31,
2018 on March 27, 2019.
Production
Touchstone has initially completed all of the wells drilled in
its 2018 drilling campaign. Due to best practice in Trinidad, the Company initially completed the
lower most sands in each of the wells. Upon evaluation of
production rates and economic viability, several of the initial
completed zones were suspended, with the Company moving uphole to
more prospective targets. To date, the Company has eight of the 11
wells optimized with the remaining three awaiting final approval to
complete additional sands. Upon receipt of the customary regulatory
approvals, the Company will proceed with the proposed
workovers.
The Company received average prices of US$52.00 per barrel for the month of January and
US$56.84 per barrel for the month of
February, which represented a 12.5% and 11.1% discount to Brent
reference pricing, respectively. For comparison purposes, the
Company received an average price of US$58.41 in the fourth quarter of 2018, which
represented a discount of 15.1% to average Brent reference pricing
over the period. The Company has collected its monthly crude oil
sales payments from the recently formed Heritage Petroleum Company
Limited in a timely manner pursuant to the transferred marketing
agreements.
Paul Baay, President and Chief
Executive Officer, commented:
"The team continues to optimize the wells drilled in the 2018
program which has resulted in significant changes to our stabilized
base production rates. Several of the wells are pool extensions and
as such have shown much higher pressures than we have encountered
in the past, which has also resulted in higher initial production
rates. These wells have also verified a number of new geological
concepts that will further expand our development drilling
inventory."
Ortoire Block
The Company has submitted all required documentation for four
CECs, which represent a total of 14 drilling locations on the
Ortoire property. Two CECs covering seven drilling locations have
been approved to date, and the Company anticipates that the final
two CECs will be approved within the next 30 days. In addition, the
Company has commenced securing the required services to drill the
Coroson exploration well.
About Touchstone
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 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 relating to current
field estimated crude oil production volumes, the expected timing
of regulatory approvals, the potential undertaking, timing,
locations, production rates and costs of future well drilling,
completion and exploration activities, and the sufficiency of
resources and available financing to fund future exploration,
drilling and 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
December 31, 2017 Annual Information
Form dated March 26, 2018 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.