Good News folks
Touchstone Exploration Inc (C-TAB) - News Release
Touchstone Exploration to resume 2013 drilling April 8
2013-04-02 09:14 ET - News Release
Shares issued 138,956,517
TAB Close 2013-04-01 C$ 0.235
Mr. Paul Baay reports
TOUCHSTONE PROVIDES OPERATIONS & PRODUCTION UPDATE
Touchstone Exploration Inc. has provided the following operations and production update.
Highlights:
- Current field estimated production of approximately 2,550 barrels per day;
- Second quarter field estimated production of approximately 2,000 barrels per day;
- 2013 exit production guidance of 3,000 barrels per day to 3,300 barrels per day;
- Resumption of the 2013 drilling program scheduled for April 8, 2013, with up to 12 additional wells planned.
In mid-November, Touchstone made the strategic decision to suspend its drilling program to focus on two key areas. The first was to improve the production from existing wells and put in place a strategy to deal with mobile sands that were impeding oil production. The second was to secure the required approvals and equipment to assure that upon recommencement of drilling Touchstone would be able to recognize the economic savings associated with a continuous drilling program. Touchstone plans to recommence its 2013 drilling program with rig mobilization beginning April 8, 2013.
Together with improved utilization of existing equipment, the company has made both personnel and procedural changes to increase production from existing wells. Touchstone refers to this as duty factor and has seen an almost 2-fold increase from approximately 48 per cent in December, 2012, to 80 per cent in March, 2013, under the new structure. Based on field estimates, sales production volumes for the period of Jan. 1, 2013, to March 31, 2013, averaged approximately 2,000 barrels per day. Current field estimated production is approximately 2,550 barrels per day.
A number of key properties can be highlighted to explain the significant production increase during a period where no new wells were drilled. The WD-4 property, which was acquired in November, 2012, has been integrated and is presently producing in excess of 645 barrels per day based on field estimates. The WD-8 property has now exceeded production volumes of 980 barrels per day based on field estimates due to an improved duty factor and full utilization of the coil tubing unit over the past 90 days. The main focus of the coil tubing unit has been the cleanout of sand filled wellbores, along with perforation washes that have proven highly successful. The other property of note is Fyzabad, where the company drilled two wells in late October that now have current combined field estimated production of 200 barrels per day. As a result of the success of the production optimization program, the company has now increased its field estimated Sept. 30, 2013, exit production guidance to between 3,000 barrels per day and 3,300 barrels per day.
In addition to the four wells drilled in the first quarter, the balance of the 2013 drilling program will include up to 12 additional wells drilled before the end of Touchstone's fiscal year-end of Sept. 30, 2013. The company plans to begin with two shallow development wells at Fyzabad drilled to depths of approximately 2,200 feet. The program will then move to the WD-8 property to drill two wells targeting the Cruse formation. The program will then proceed to the Coora block for a minimum of two wells before returning to the WD-4 and WD-8 properties. Ron Bryant, Touchstone's president and chief operating officer said, "It is exciting to see the drilling program get back under way, and the success that we have achieved on the production front is very encouraging for the 2013 and 2014 programs."
Touchstone has received approval of a certificate of environmental compliance (CEC) from the Environmental Management Authority for up to 50 future drilling locations and related facilities on its WD-8 property. This brings the company's total number of CEC-approved drilling locations to over 110 across all of its developed properties. A CEC is an important step in securing regulatory approval for future drilling locations and will ensure that the company has an ample inventory of executable projects as it moves into future drilling seasons.
Touchstone is looking forward to evaluating the Trinidad onshore bid round opportunity that is scheduled to close mid-year. The government of Trinidad and Tobago is making available three onshore exploration parcels, some of which are adjacent to existing Touchstone acreage.
Touchstone and its partners continue to eagerly await the final renewal of the East Brighton offshore licences. No formal date has been set by the government, but the company anticipates receiving the renewal in the first half of 2013.
We seek Safe Harbor.