Touchstone Exploration Inc. Provides Operational Update
May 20, 2014 (Source: Marketwired) — Touchstone Exploration Inc. (“Touchstone” or the “Company”) (TSX:TXP) is pleased to provide an operational update following the closure of the previously announced combination of Petrobank Energy and Resources Ltd. and Touchstone Exploration Inc.
The Company’s field estimated average oil production as of May 15, 2014 was 2,080 barrels per day (100% oil weighted). Production in Trinidad represented approximately 80% (1,660 barrels per day) while Canadian operations provided approximately 20% (420 barrels per day) of the Company’s total oil production. In 2014 the Company is forecasting a $28 million capital expenditure program to achieve a Trinidad exit production rate between 2,300 and 2,400 barrels per day.
Touchstone is currently drilling its first operated well of 2014 on Forest Reserve WD-8. FR-1747 was spud on May 6, 2014 and will be drilled to a depth of 3,740 feet targeting oil reserves in the Upper, Middle, and Lower Cruse Formations. The well is anticipated to reach total depth in the next two days and will be logged and cased prior to completion. Following the drilling of FR-1747 Touchstone will continue drilling operations in Forest Reserve WD-8 before moving to the Coora block for a planned five well drilling program.
A second drilling rig has been contracted and will be mobilized to drill the first of three wells in Grande Ravine WD-4 in June of 2014. These three wells will be drilled from a single surface location to minimize costs and surface impact. Following the Grande Ravine operations the rig will move to Coora and then back to WD-4 for another three well drilling program.
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A third non-operated drilling rig is currently drilling the Jacobin 1 ST exploration well on the Cory Moruga Block, of which Touchstone has a 16.2 percent working interest. The Jacobin 1 ST exploration well will be drilled to a depth of 6,700 feet and is targeting oil reserves in the Herrera and Lower Cipero Sandstones.
Touchstone plans on drilling a total of 21.3 net wells in Trinidad by the end of 2014.
The Company has commenced the evaluation of its Canadian assets located at Kerrobert, Saskatchewan and Dawson, Alberta. The focus of the evaluation will be to make both properties cash flow positive, following which long-term depletion plans will be implemented. Both of these properties have significant oil in place and the Company will evaluate economic methods to obtain maximum value from the assets. No new wells are proposed on any of the Canadian assets prior to the end of the year.
The Kerrobert property has recently been equipped with new down-hole pumps that are designed to significantly increase total produced volumes. The existing facilities have significant fluid handling capabilities that can be utilized as total production volumes increase. Current production from the Kerrobert facility is approximately 300 barrels per day.
At the Dawson property, Touchstone is in the final stages of its initial steam injection cycle on two operated wells and will begin production during the month of June. The Company will initiate a development plan for this property based on the initial economic results of the first production cycle.
Touchstone is pleased to announce that Mr. Todd Brown, P.Eng., has been appointed to the position of Chief Operating Officer. Mr. Brown will be focused on increasing the Company’s operational capabilities and executing the 2014 operations schedule.
Touchstone Exploration Inc. is a Calgary-based company engaged in the business of acquiring interests in petroleum and natural gas rights, and the exploration, development, production and sale of petroleum and natural gas. Touchstone is currently active in onshore properties located in the Republic of Trinidad and Tobago and western Canada. The Company’s common shares are traded on the Toronto Stock Exchange under the symbol “TXP”.
Forward-Looking Statements: Certain information provided in this press release constitutes forward-looking statements. Specifically, this press release contains forward-looking statements relating to financial results, results from operations, future capital expenditures, drilling success, production results, plans related to and the timing of certain projects and anticipated sources of available financing. Forward-looking statements are necessarily based on a number of assumptions and judgments, including but not limited to, assumptions relating to the outlook for commodity and capital markets, the success of future resource evaluation and development activities, the performance of producing wells and reservoirs, well development and operating performance, general economic conditions, weather, and the regulatory and legal environment. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. You can find a discussion of those risks and uncertainties in the Company’s Canadian securities filings. Such factors include, but are not limited to: general economic, market and business conditions; weather conditions and access to properties; fluctuations in oil prices; the results of exploration and development drilling, recompletions and related activities; timing and rig availability; outcome of exploration contract negotiations; fluctuation in foreign currency exchange rates; the uncertainty of reserve estimates; changes in environmental and other regulations; uncertainties associated with the regulatory review and approval process in respect to projects; risks associated with the application of early stage technology; risks associated with oil and gas operations and other factors, many of which are beyond the control of Touchstone. There is no representation by Touchstone that actual results achieved during the forecast period will be the same in whole or in part as those forecasted. Except as may be required by applicable securities laws, Touchstone assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.
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