Touchstone Exploration Share News (TXP)

(Sharecast News) - Touchstone Exploration updated the market on its operations on Tuesday, including the recovery of pressure gauges from the Cascadura Deep-1 well on its Ortoire onshore exploration block in Trinidad, where it is the operator with an 80% working interest, alongside Heritage Petroleum Company, which has a 20% working interest.
The AIM-traded firm said the Cascadura Deep-1 well was completed over a 199-foot-thick interval in Sheet Four of the overthrust Herrera Formation.

Following production testing operations, the well was shut-in for a pressure buildup test on 11 April, and the pressure gauges were recovered on 17 May.

It said the buildup test data showed no depletion, with a final bottom hole pressure of 4,746 pounds per square inch (psi), confirming a "substantial" liquids-rich gas discovery.

Analysis of buildup data showed the test was unbounded with a minimum radius of investigation of 1,500 feet, which the board said confirmed the significant size and reserve potential of the pool.

While the well test data indicated that the formation was damaged, Touchstone said it was confident that the well would require no stimulation, and that flow rates would be consistent with those during testing, which saw an average flow back rate of 22.9 million cubic feet per day of natural gas, and 449 barrels per day of natural gas liquids.

Natural gas produced during the production test was about 94% methane with no hydrogen sulfide, while natural gas liquids consisted of 57 degree API condensate with no associated hydrogen sulfide.

There remains around 560 feet of potential pay above the completed zone, which could be evaluated in future development.

"I am pleased to report that the downhole gauges recovered from Cascadura Deep-1 have provided excellent data, and the information has increased our confidence in the substantial size of the pool's reserves and its potential deliverability," said president and chief executive officer Paul Baay.

"The data is consistent with the previous testing performed at Cascadura-1ST1, and we are encouraged by the lack of any boundary limits observed on the reservoir.

"The team continues to move all of our projects forward under the Covid-19 restrictions that were recently enacted in Trinidad."

Baay said the company was "confident" that it would spud Royston-1 in June, despite recent construction delays due to Covid-19 emergency health measures.

He added that the drilling of Royston-1 would complete the first phase of Touchstone's exploration programme at Ortoire.

"The second phase is expected to include the Steelhead and Guabine prospects targeting the Herrera and Karamat Formations, as well as our Cretaceous prospect at Kraken.

"The phase two exploration program is anticipated to be performed in parallel with development programs at our confirmed Ortoire discoveries.

"Our future capital projects are anticipated to commence following the start of production from Coho and Cascadura, as these discoveries are expected to provide the funding for our future development and exploration programs."

At 1450 BST, shares in Touchstone Exploration were flat at 97p.