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(Sharecast News) - Touchstone Exploration announced the results of the first of three planned production tests at its Royston-1 exploration well on Monday, which confirmed a light oil discovery in the lowermost section.
The AIM-traded firm said the section tested was initially designed to establish the base of potential hydrocarbon, with the light oil discovery representing a new pool which had not been encountered in any of the regional offsetting wells.
As it had previously said, the Royston-1 exploration well was spud on 12 August and was drilled to a total depth of 10,700 feet.
Touchstone has an 80% operating working interest in the well, located on the onshore Ortoire block on the island of Trinidad.
Heritage Petroleum Company holds the remaining 20% working interest.
Drilling samples and open hole wireline logs indicated that the well encountered a "significant" Herrera turbidite package, with a total observed thickness of more than 1,000 feet.
The overall Herrera section drilled in Royston-1 contained around 609 feet of clean sand, of which 393 gross feet in two unique thrust sheets appeared to be hydrocarbon pay based on mud gas logging and open hole logs.
Touchstone said the first and deepest Royston-1 completion and exploration test was designed to evaluate an interval at the bottom of the well in the intermediate sheet of the Herrera Formation.
The completion spanned a 92-foot gross interval, with 30 feet of net pay below 10,434 feet, that was identified on wireline logs as being hydrocarbon-bearing.
Following completion and a brief clean-up period to recover load fluid, the well was shut-in and built to a pressure of 3,150 pounds per square inch at surface, for an estimated 7,100 pounds per square inch reservoir pressure.
The interval was then flowed up 3.5-inch tubing on a variety of choke sizes between 16/64ths of an inch and 40/64ths of an inch, at rates up to 360 barrels per day of 34.5-degree API crude oil before being shut-in.
Testing of the interval was complete, with the company moving uphole to the well's primary production test intervals.
"We are excited to discover a promising new light oil pool in the deepest test section of the Royston well, adding further potential to the future development opportunity in the Royston area, as light oil can be easily and economically developed alongside any gas development," said president and chief executive officer Paul Baay.
"The initial test confirms the large hydrocarbon column in the well, and we interpret the following two primary testing targets to be liquids rich natural gas.
"These results exceed pre-test expectations, as a flowing light oil opportunity with significant development potential from the bottom 100 feet of the wellbore is a major addition to the Royston area opportunity."
Baay said the company was looking at the potential to further evaluate the intermediate Herrera in future drilling programmes, by penetrating the intermediate sheet when it drilled and assessed the underlying Cretaceous prospect.
"These results further amplify our onshore opportunities in Trinidad."
At 1515 GMT, shares in Touchstone Exploration were up 23.4% at 145p.
11 Aug 2022 19:10
IN BRIEF: Touchstone Exploration sales lifted by higher oil prices
Touchstone Exploration Inc - Calgary, Canada-based upstream oil and gas company - Achieves quarterly average crude oil production volumes of 1,420 barrels per day, up 2% on a quarter before and up 1% year-on-year. Achieves petroleum sales of USD12.6 million from average crude oil price of USD97.48 per barrel compared to sales of USD7.6 million from average price of USD59.06 per barrel a year before. Reports net loss of USD262,000 in the quarter, narrowing from USD284,000 a year before. Books USD540,000 provision from oil spill which occurred as a result of vandalism in June 2022.
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