Touchstone Exploration Inc T.TXP

Oil migration and Chinook/Royston - some thoughts and pics

[Proselenes]

To go with my earlier post about thickness and also Chinook, here are some pictures. Obviously this is very crude, its 2D slices and of course that is not a real representation of the 3D geology, but it helps to pictorially explain the updip much thicker potential and what why Chinook-1 hit the water and not the oil thats there in the Intermediate 7bc.











Gaubine Herrera looks exciting now as well, as of course, Chinook updip. The significance of finding this new oil pool in the Intermediate 7bc is strong for making the case for Chinook and Gaubine Herrera to be major oil discoveries now. Not only a big find at Royston, but also now highly likely that Chinook and Gaubine will be major oil discoveries to develop in future.







.

[Proselenes]

For those willing to look forwards, not backwards, its highly significant that the Herrera Intermediate Sheet 7bc has been found to be oil bearing at Royston, high pressure oil and with high pressure water underneath. This makes very strong sense now that Chinook-1 hit below the OWC and so into high pressure water with only oil traces.  Thats what happens when you drill into below the OWC

[Taffypalmer2014]

Wow Pro excellent analysis, keep up the digilent work, much appreciated. Chinook looks like a winner, just have to be patient like you said

[Proselenes]

The next question ahead is............What If......... What if the Royston-1 Overthrust Herrera 7bc is also Light Oil.........so we have a second and even bigger, like massive, light oil discovery in the 2nd test of the Overthrust 7bc ? Now that the Intermediate Sheet 7bc is proven flowing light oil. Royston-1 is updip of Shell OL-4. Shell OL-4 was looking for oil but got "gas effect".

[Samsam17]

Thanks Pro for your observations. It will definitely be an exciting few weeks ahead for the remainder of the Royston test results. Not having your technical expertise, I will simply wait for the sign from the Canadian uncle of the local Trini before starting to celebrate. Good luck to all us patient long term investors!!

[Margin321]

Pro - that is more than I can handle! I just want the wheel to stop at "liquids rich gas flowing in commercial volumes from Royston well.". We need the cleanest of results, with no surprises and no speculation that will have to be answered by future drills. The negative impact of the quarterly report was partly because of ths results of the simple WD-4 development oil well. What we

[Proselenes]

I would not expect anything over 100 bopd from WD4 drill.  WD4 is quite a low producing area, not high rates.  I think they just have to drill a well there as opposed to really wanting to. WD8 are more higher producers (certainly more than 100bopd) which is why drills 2 and 3 are at WD8.

[Margin321]

PRO - You missed my whole point. (smiley face).  I could care less how many bopd from the WD-4 well. Just as long as it was about the amount they expected. And that they drilled it quickly and moved on to the next one. They should have three of the four legacy development wells drilled by now.  Wonder if the rig has even moved to WD-8 pad. Sorry that you didn't like the flare

[smitlo]

What was the issue on the flare reporting you mentioned - guess I missed that. I have been trying to keep an eye on the flare website for any activity. Also, Pros discussion on Chinook relative to the Royston light oil discovery was enlightening and much appreciated. Thanks to all who contribute here. Price action lately is frustrating but hopefully good news is right around the corner!

[Proselenes]

No flares seen so far at Royston area.......at all. Neither through the test already done for oil in the bottom zone, or the ongoing test on the 2nd zone.

[smitlo]

Is it possible they are using a enclosed incinerator of some some sort? Have heard of this for smaller applications not so sure for something of this potential magnitude. I don't recall if we had report of a flare for Cascadura or not.

[stanley]

Lurk & Learns & Smitlo: Welcome to Smitlo, the "great wall of cash" will have a significant input from the Cascadura Complex. For those wondering of the importance of the ONSHORE gas to the reopening (or ramp up) of the businesses located int the Phoenix Business park is quite significant.  For those with a penchant for "details" a link to another Technical

[smitlo]

Thanks Stanely for the info - will definetly take a look