Touchstone Exploration Inc T.TXP

CO2 EOR Western Fields

[Ginmunger]

Stole the history blurb below from another bb. Looks like there will be some more enhanced c02 projects going on in Trinidad on the Heritage owned wells. If Touchstone can apply c02 injection to the western fields and increase production from 1300 bopd to about 2000 and extract 3 or 4 million additional barrels at a reasonable cost, I would be a happy camper. At a $20 netback we are talking about 60-80 million in total revenue at what should be a very attractive roi. Right now I think the western play is worth about 5x cashflow or $60-80 usd million to the right buyer. If the eor can increase productivity to 2000 bopd, we would get a meaningful upgrade in reserves and get it up closer to 100 million. Touchstone does have 4 wells planned in the western properties, but hopefully they will be way too busy with all the development/exploration well drilling Chinook, Cascadura, Royston, Steelhead and the Kraken to drill them for a while. I know they're not as sexy as the exploration plays that might be worth billions but as PB said, the western fields are paying for all bills today and can still contribute to the overall value of the company. They plan on doing water injection and watching closely as these c02 projects play out. Certainly something new to think about while we wait for the gas results. History of CO2 injection in Trinidad and Tobago Trinidad and Tobago has been involved in the oil and gas industry for over a century. Our daily oil production has been declining since our peak in 1978 and our fields are now classified as mature. Many methods of Enhanced Oil Recovery have been attempted in Trinidad, including the injection of CO2. It was first tested in 1972 by Texaco in Guayaguayare and Brighton which then ramped up in 1974 in the Forest Reserve field. From 1975 to 2004, carbon dioxide was intermittently injected in the Upper Forest Formation and Upper Cruse Sands in the Forest Reserve field. From 1990 to 2000 CO2 was continuously injected in the Oropouche field. Approximately 1.26 million Metric Tons (24 Billion cubic feet) of CO2 were injected in both fields in total to recover 4 million barrels of oil, with a peak production of 812 bopd in Forest Reserve. A positive response to injection was observed in all projects within 6 months to 1 year of CO2 injection. (Mohammed-Singh , 2004) before Petrotrin permanently halted injection in 2004 after an explosion at the Point Lisas compressor station. In 2009, Krishna Persad and Associates (KPA) operated a small, 4 well, pilot CO2 project in the Barrackpore farmout, with quite modest results (Sinanan, B. 2016). Since the KPA pilot ended in 2010 no further CO2 injection occurred until May 2020 at a small pilot project operated by Columbus Energy in the Inniss-Trinity IPSC (Guayaguayare). As of December 2020, a positive response was observed while 70% of the 9 Metric tons/day of CO2 currently being continuously injected is forecast to be sequestered in the Herrera Sands. Future Inniss-Trinity expansion projects have the potential for additional recovery of up to 9 million barrels of oil. For more information on this project see: https://www.predatoroilandgas.com/operations/trinidad/#C02-Supply-Contract.

[Ginmunger]

Touchstone was originally planning to bring the western fields up to 5,000 bopd before oil prices tanked and they found Commercial Gas at Coho and Cascadura. If oil prices cooperate, it would be nice to see Touchstone eventually go back and drill 10-12 wells here per year and continue the high roi workovers . They have 4 wells planned right now, but until they plan to launch a full program, I

[Bully1985]

Very good point. Is that not what the rig contract was secured for? To allow more drilling at the western oil fields 

[Margin321]

No the new Canadian rig was contracted because it has more capability to handle high pressure situations like cascadura where the deepest  targeted sands were not able to be reached in first two wells because of high pressures and high gas flows from the prolific upper formations. (not a bad problem to have). And better able to drill deeper targets like Kraken. It has more horsepower and is

[stanley]

Ginmunger: Think you might be interested in the following (excellent) link as presented by Dr Krishna Persad. CO2 injection works for oil and gas. Enhanced Oil (and Gas) Recovery in T & T-- A Paper GLTAL - GLAP Cheers Stanley

[Davidblackgreen]

First Trini to obtain a PhD in oil exploration geology apparently. Possibly suggests he has access to most of the oil exploration information on the island should he ask. Plus he is probably a little bit bright so any ideas he has are probably worth listening to.

[Ginmunger]

Thanks Stanley, interesting presentation, I didn't see anything in it about c02 recovery though. Found this quote intriguing FUTURE POTENTIAL DEEPER POOLS ECMACOLUMBUS BASIN Talukdar et al (1989.26 years ago) predicted deeper pools of residual oil below gas/condensate fields in ECMA ALL (MECHANICALLY SUCCESSFUL) DEEPER POOL WELLS IN GAS/CONDENSATE FIELDS IN THE ECMA HAVE FOUND BLACK OIL BELOW

[stanley]

Ginmunger: Oops wrong link; the one that was posted was the one (re) posted by U123 earlier. The one I intended was a video of a presentation at UTT (University of Trinidad & Tobago) Potential for use of CO2 in an EOR Program Again My Apologies Cheers Stanley