Touchestone's Q2 crude oil sales at 1,335 bbl/d Touchestone's Q2 crude oil sales at 1,335 bbl/d
Touchstone Exploration Inc (2) (C:TXP)
Shares Issued 103,137,170
Last Close 7/14/2017 $0.155
Monday July 17 2017 - News Release
Mr. Paul Baay reports
TOUCHSTONE ANNOUNCES SECOND QUARTER OPERATIONS UPDATE
Touchstone Exploration Inc. has provided the following operational update for the three months ended June 30, 2017.
Highlights
Achieved second quarter crude oil sales of 1,335 barrels per day ("bbls/d").
Realized an average price of US$45.51 per barrel in the second quarter of 2017.
Average field estimated daily oil production for the first two weeks of July was 1,455 bbls/d.
The initial two wells of the 2017 drilling program were completed and placed on production; the average combined field estimated oil production for the first two weeks of July was 203 bbls/d.
The final two wells of the 2017 drilling program have been drilled and cased for oil production encountering a combined net oil pay of approximately 637 feet.
Production and Pricing
Second quarter 2017 crude oil production was 1,335 bbls/d, representing an increase of 4% from 1,280 bbls/d produced in the first quarter of 2017. Realized second quarter 2017 pricing for crude oil was US$45.51 per barrel versus US$48.20 per barrel received in the first quarter of 2017. The 6% decrease was a result of an 8% decrease in the Brent reference price over the period and a reduction in the realized Brent reference differential from approximately 10% to 8%.
The Republic of Trinidad and Tobago was affected by Tropical Storm Bret which struck the island on June 29th and 30th. The storm had minimal impact on Touchstone's production, and no safety issues were reported.
Drilling Campaign
Coora 1 Block
In the second quarter of 2017, the Company drilled and completed two wells (CO-368 and CO369) on the Coora 1 property. Both wells are currently on production (100% oil).
CO-368 was perforated on June 13, 2017 with the initial completion targeting 15 feet of the estimated 195 feet of oil bearing sand encountered in the Cruse formation. The well is currently flowing 27degree API oil up 7" production casing through a 12/32" choke with average daily oil production over the first 26 days of 111 bbls/d. The Company anticipates the well will be placed on pump once the pressure decreases. A larger interval in the well was initially designed for completion but high initial pressures required the well to be put to production immediately following the completion. This well is the deepest well the Company has drilled on the Coora 1 block and has verified the geological concept that many of the deeper sands in the area are highly productive.
The CO-369 well was perforated on June 23, 2017 with the initial completion targeting approximately 97 feet of the estimated 150 feet of oil bearing sands in the Cruse formation. The well was immediately put to pump with an average daily oil production rate of 151 bbls/d over the first 17 days of production. The well has over 2,000 feet of pump submergence and will be further optimized once additional pressure data is received.
Grand Ravine WD-4 Block
The PS-598 well was spud on June 8, 2017 and was drilled to a total depth of 7,340 feet on June 29, 2017. Drilling was interrupted due to Tropical Storm Bret but no additional costs were incurred due to the delay. Wireline logs indicate approximately 355 feet of net oil pay as follows:
Upper Forest formation260 feet Lower Forest formation 59 feet Cruse formation 36 feet Total (net) oil pay 355 feet
The Company cased the well for oil production and has deferred the completion of the well subsequent to the drilling of PS-599, as the two wells share a common surface location. The initial completion in the PS-598 well will target the lowest 36 feet of oil sands encountered in the Cruse formation.
The PS-599 well was spud on June 30, 2017 and reached a total depth of 6,926 feet on July 11, 2017. The well was drilled to access hydrocarbons in a separate, but adjoining fault block to the PS-598 well. Wireline logs indicate the presence of approximately 282 feet of net oil pay in both the Forest and Cruse formations as follows:
Upper Forest formation197 feet Lower Forest formation 25 feet Cruse formation 60 feet Total (net) oil pay 282 feet
The Company will commence completion operations on the PS-598 well as soon as the drilling rig has moved off location and will complete the Cruse sands in the PS-599 well immediately thereafter. The initial completion in the PS-599 well will target lowermost 60 feet of oil sands encountered in the Cruse formation.
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".
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