Touchstone Exploration Cascadura Deep-1 well confirms liquids rich natural gas

Touchstone Exploration

Touchstone Exploration Inc. (TSX, LON:TXP) has announced the completion of flowback testing of the Cascadura Deep-1 well, confirming a liquids rich natural gas discovery. Touchstone has an 80 percent operating working interest in the well, which is located on the Ortoire block onshore Trinidad and Tobago (Heritage Petroleum Company Limited (“Heritage”) holds the remaining 20 percent working interest).

Highlights

·      Touchstone perforated the top 199 feet of the 449 feet identified as potential pay in sheet four of the overthrust Herrera formation on April 8, 2021.

·      The average flowback rate during the extended 24-hour test period was approximately 4,262 boe/d, including 22.9 MMcf/d of natural gas and 449 bbls/d of NGLs.

·      Peak flowback rate of approximately 4,567 boe/d was observed, comprised of 24.5 MMcf/d of natural gas and 477 bbls/d of NGLs.

·      Approximately 48.8 MMcf of natural gas (8,138 boe) and 1,081 barrels of NGLs were produced during the testing period.

·      Field analysis indicated liquids rich gas with no hydrogen sulfide and no produced water.

·      The well is currently shut-in for a minimum four-week pressure build-up test.

Paul Baay, President and Chief Executive Officer, commented:

“The positive test results from Cascadura Deep-1 further expands the opportunity on the Ortoire block as we now expect to have two distinct and separate sheets producing from two wells in the Cascadura structure. We will accelerate operations required to bring the two Cascadura wells onto production as the test results allow us to properly size surface facilities for reservoir management. We are also moving forward with the required applications to establish a second Cascadura surface location, designed for up to four development wells. The test results demonstrate the clear future production opportunities for the Company.”

Cascadura Deep-1 Testing

Cascadura Deep-1 well production testing commenced on April 8, 2021, with flow tests spanning a total of 58 hours, comprised of an initial clean-up flow period, followed by an initial shut-in period and a five-step rate test, including a 24-hour extended flow test. Well testing was conducted by an international well testing and measurement company.

During the extended flow test period, the well achieved a peak production rate of approximately 4,567 boe/d (90% natural gas). This production rate included approximately 24.5 MMcf/d of natural gas and 477 bbls/d of NGLs flowing at 1,917 psi. During the 24-hour extended portion of the flow test, the well averaged a production rate of approximately 4,262 boe/d (89% natural gas), including 22.9 MMcf/d of natural gas and an estimated 449 bbls/d of NGLs. The flowing pressure of the well during this stage of testing averaged 1,856 psi through a 50/64-inch choke. Approximately 48.8 MMcf of natural gas (8,138 boe) was produced during testing, with 1,081 barrels of NGLs and 27 barrels of water which were less than the load fluid used in the well.

During testing, Cascadura Deep-1 yielded 59.5-degree API gravity NGLs at an average ratio of approximately 22 barrels of NGLs per MMcf of natural gas produced. Field analysis of the produced gas indicated liquids rich natural gas with no hydrogen sulfide content. Additional testing of fluid samples will be conducted to accurately assess the gas and associated liquids composition.

The well is currently shut-in for an extended pressure build-up survey for a minimum of four weeks to identify possible formation boundaries. Touchstone will not conduct further testing of the well and intends producing the well concurrently with Cascadura-1ST1.

James Shipka, Chief Operating Officer, commented:

“The exceptional performance noted during Cascadura Deep-1 well testing reinforces the geological concept of multiple stacked, independent hydrocarbon charged horizons in the Herrera turbidite fairway. We will not be conducting any up-hole testing in the well as we do not want to interrupt this interval at the risk of damaging the reservoir with water-based fluids. The data collected in this flow test indicates that sheet four is separate from sheet three, where production is expected from the Cascadura-1ST1 well. There remains an additional 558 feet of potential pay above the tested zone in sheet three which can be evaluated in future development wells.”

Extension of Lease Operatorship Agreements

Touchstone Exploration has further extended the term of its Lease Operatorship Agreements (“LOAs”) with Heritage for its Coora-1, Coora-2, WD-4 and WD-8 blocks to April 30, 2021. The LOAs were originally set to expire on December 31, 2020 and were previously extended to March 31, 2021. The LOAs remain under existing terms and conditions while Heritage progresses on regulatory approvals regarding new ten-year LOAs for each property.

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Touchstone Exploration Inc

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