Touchstone Exploration Inc T.TXP

Relative perm

[CR1papa]

Herrera is very fine grained so 3 fluid phases(oil, gas, water) present in a reservoir need lower water saturations to allow fluid flow. Chinook twinned and old Shell well with lots of rich oil shows so there is likely some oil in the reservoir. That is great but the fine grained nature of Herrera means that good oil shows with moderate water saturations flow next to nothing although pores do contain some oil. Logs need to be very carefully analyzed to distinguish between an oil saturation that is valueless and one that will produce oil and mistakes easily made. Royston is a twin of another old Shell well with very few oil shows and old logs of the thin bedded turbidites. It may be more like it's on strike analogue, Carapal Ridge 1, that had limited oil shows and over 600 feet of Herrera turbidite pay sands. In summary Chinook easily fools anyone that doesn't have a firm grasp of the Herrera reservoirs and relative permeability effects. Cheer for gas and liquids at Royston, not oil. Tests will tell, I am optimistic.

[Margin321]

Thanks. I do think that they have a firm grasp on Hererra turbidite reservoirs especially XM but I also realize they are continuing to learn from each well. They are only 5 wells into this first exploration program. I think they were fooled at chinook because at Cascadura 1-ST and at Cascadura Deep they had gas kick back to surface under high pressure and had difficulty controlling the wells and

[1geoguy]

you do not this stuff until you drill it.  Each deposit would be different content and the permability is alo different.  They said 'small grained' and that says lower porosity as well.  finer grained sand will lay over each other with less open pore space to hold oil and water, or gas.  That says tighter and that is lower porosity, that means the ability to flow