Touchstone Exploration (LON:TXP) have told shareholders that they have received “extremely encouraging” results from testing of a well in Trinidad & Tobago.
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.
Shares in Touchstone trade at 22p (+0.53%). 20/1/20 13:00BST.
The firm had been studying the lowermost 162 foot pay interval at the onshore Cascadura-1ST1 well. It has since been shut-in, with pressures too high for current equipment.
The company said that before shut-in, fluid, hydrocarbon emulsion, and gas were recovered at the service after 97 minutes of testing.
Touchstone is the operator of the well with an 80% stake, alongside partner Heritage Petroleum Co Ltd.
The initial test interval was completed on January 17, 2020 to evaluate the lowermost 162 foot pay interval between 6,056 and 6,218 feet.
The well was opened to test on January 18, 2020 on a 4/64″ choke for a period of 97 minutes with load fluid, hydrocarbon emulsion and gas recovered at surface prior to shut-in.
Paul R. Baay, President and Chief Executive Officer, commented:
“This is the best possible outcome for the initial test results from the Cascadura well, as natural gas and liquids have superior economic value under the Trinidad fiscal regime. Based on the information acquired while drilling, the thick sand we encountered in the well appeared to contain oil with some associated gas. It is now evident that it is likely a liquids rich gas structure. Given this is only the lowermost 162 feet of pay in the well, these initial results are extremely encouraging.”
Touchstone build from November loss
The firm in November reported a third consecutive quarterly loss.
For the three months to the end of September, Touchstone Exploration achieved average crude oil production of 1,729 barrels per day, down 2% from 1,758 barrels in the same period a year ago.
On a positive note, nine month average production was up 12% to 1,871 barrels per day but might not be enough to satisfy shareholders within a disastrous financial 2019.
Touchstone Exploration’s net loss for the quarter was CAD1.1 million, ($793,816), swinging from a profit of CAD199,000 a year before, as petroleum sales dipped by 9% to CAD9.0 million from CAD9.9 million.
The update today from Touchstone will please shareholders, and the firm will been keen to build on today’s update following a tough few months.
