REG - Touchstone Explrtn. - OPERATIONAL UPDATE

Touchstone ExplorationAnnouncement

27/06/2022 07:00

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RNS Number : 2086Q  Touchstone Exploration Inc.  27 June 2022

OPERATIONAL UPDATE

 

CALGARY, ALBERTA (June 27, 2022) - Touchstone Exploration Inc. ("Touchstone",
"we", "our", "us" or the "Company") (TSX, LSE: TXP) provides an update on the
operational progress across the Ortoire block, onshore Trinidad. Touchstone
has an 80 percent operating working interest in Ortoire block, with Heritage
Petroleum Company Limited holding the remaining 20 percent working interest.

 

Coho

·      The pipeline from our Coho facility to the Central block has been
completed, and hydrotesting is scheduled to commence this week upon which the
pipeline will be ready for first gas.

·      The surface facility is 98 percent complete with all
infrastructure in place, including instrumentation, tanks and the
communication tower, which will enable the transmission of gas meter data to
our offices in Calgary and Trinidad.

·      Construction is underway on the 63-foot above ground pipeline to
the Central block tie-in point, which is the final requirement of the project.

·      Upon completion of the tie-in, commissioning and handover of the
pipeline, Coho natural gas production will commence with the expectation that
production will increase over time to 10 MMcf/d (1,667 boe/d) gross, 8 MMcf/d
(1,333 boe/d) net.

·      Coho will be the first onshore natural gas project to come
onstream in 20 years, representing an important milestone for both Touchstone
and the Republic of Trinidad and Tobago.

·      Based on the current contractor schedule and expected pipeline
commissioning and handover process, we are targeting full production in August
2022.

Cascadura

·      Workstreams across the Cascadura area are progressing with
several important deliveries, including the separators and vapour recovery
units, scheduled to arrive in Trinidad in the coming weeks.

·      Surveying of the lease expansion, pipelines, roads, and future
drilling locations has commenced, along with the treatment of drilling pits
for reclamation.

·      Three major construction contracts for the Cascadura facility
have been procured to date with local contractors and are consistent with our
pre-design budget.

·      We continue to wait for the approval of the Environmental Impact
Assessment ("EIA"), with all the relevant reports and information submitted
for regulatory review. Following the anticipated approval and submission of
the required notice periods, we intend to proceed with construction of the
surface facility, access roads, liquids pipeline and future development
drilling locations. The onstream date of the Cascadura facility will be
determined by the timing of receipt of the EIA approval.

·      Initial gross aggregate natural gas and associated liquids
production from our Cascadura-1ST1 and Cascadura Deep-1 wells has been
budgeted at 11,500 boe/d (9,200 boe/d net), and the Cascadura natural gas
processing facility has been designed for a maximum gross capacity of
approximately 200 MMcf/d of natural gas and 5,000 bbls/d of associated liquids
(38,333 boe/d).

Drilling

·      The Royston surface equipment has been repositioned to
accommodate the future sidetrack of Royston-1 to test the intermediate and
subthrust sheets of the Herrera Formation.

·      Upon approval of the Cascadura EIA, an additional drilling pad at
Cascadura will be constructed to accommodate the first two future budgeted
development wells.

·      The timing of our future Ortoire drilling program will be
evaluated once Coho is on optimal production and we have received approval of
the Cascadura EIA.

Environmental Incident

 

On Wednesday, June 22, 2022, an oil transfer line on our Fyzabad block was
cut. We have determined that the cut line was an act of vandalism, and the
local police and all relevant in-country authorities have been notified. Based
on current information, we estimate that approximately 250 barrels of oil was
released. No personal injuries were reported, and reclamation efforts are
underway. All impacted residents are being assisted while cleanup activities
are conducted. Touchstone has engaged a contractor to monitor air quality
across the affected area, and  the return of residents to their homes will be
guided by the ongoing test results. We will continue to support those affected
during the duration of the cleanup and reclamation and do not expect a
material impact to our base production expectations as a result of this
matter.

 

Paul Baay, President and Chief Executive Officer, commented:

 

"We are pleased that we are nearing completion of the Coho project. We are
currently focused on the final phase which is the tie-in at the Central block.
The components required for the assembly have been designed and fabricated in
Trinidad and are onsite being installed by a local contractor. Following
installation, the assembly will require testing and commissioning prior to
first gas, with  production volumes expected to double our current production
on a boe basis. Concurrently, there has been consistent activity at Cascadura
while we await receipt of the EIA approval. We would like to thank our
stakeholders for their continued patience, and we look forward to updating the
market in due course."

 

Touchstone Exploration Inc.

 

Touchstone Exploration Inc. is a Calgary, Alberta 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. The Company's common shares are traded on the Toronto
Stock Exchange and the AIM market of the London Stock Exchange under the
symbol "TXP".

 

For further information about Touchstone, please visit our website at
www.touchstoneexploration.com (http://www.touchstoneexploration.com/) or
contact:

 

Touchstone Exploration Inc.

Mr. Paul Baay, President and Chief Executive
Officer                             Tel: +1 (403)
750-4487

Mr. James Shipka, Chief Operating Officer

 

Shore Capital (Nominated Advisor and Joint Broker)

Daniel Bush / Toby Gibbs / Michael
McGloin
Tel: +44 (0) 207 408 4090

 

Canaccord Genuity (Joint Broker)

Adam James / Henry Fitzgerald O'Connor / Thomas Diehl
            Tel: +44 (0) 207 523 8000

 

Camarco (Financial PR)

Billy Clegg / Emily Hall / Lily Pettifar
                                    Tel:
+44 (0) 203 781 8330

 

Advisories

 

Forward-Looking Statements

 

Certain information provided in this announcement may constitute
forward-looking statements and information (collectively, "forward-looking
statements") within the meaning of applicable securities laws. Such
forward-looking statements include, without limitation, forecasts, estimates,
expectations and objectives for future operations that are subject to
assumptions, risks and uncertainties, many of which are beyond the control of
the Company. Forward-looking statements are statements that are not historical
facts and are generally, but not always, identified by the words "expects",
"plans", "anticipates", "believes", "intends", "estimates", "projects",
"potential" and similar expressions, or are events or conditions that "will",
"would", "may", "could" or "should" occur or be achieved.

 

Forward-looking statements in this announcement may include, but are not
limited to, statements relating to Touchstone's development and exploration
plans and strategies, including anticipated production timelines, forecasted
initial production rates derived from previous well production tests,
anticipated pipeline and facility construction, including designed production
capacity and the timing of completion, the expectation of regulatory approvals
and timing thereof, the Company's future allocation of capital and future
drilling plans, the Company's base production expectations, and Touchstone's
current and future financial position including the sufficiency of resources
to fund future capital expenditures. Although the Company believes that the
expectations and assumptions on which the forward-looking statements are based
are reasonable, undue reliance should not be placed on the forward-looking
statements because the Company can give no assurance that they will prove to
be correct. Since forward-looking statements address future events and
conditions, by their very nature they involve inherent risks and
uncertainties. Actual results could differ materially from those currently
anticipated due to a number of factors and risks. Certain of these risks are
set out in more detail in the Company's 2021 Annual Information Form dated
March 25, 2022 which is available under the Company's profile on SEDAR
(www.sedar.com (http://www.sedar.com/) ) and on the Company's website
(www.touchstoneexploration.com (http://www.touchstoneexploration.com/) ). The
forward-looking statements contained in this announcement are made as of the
date hereof, and except as may be required by applicable securities laws, the
Company assumes no obligation to update publicly or revise any forward-looking
statements made herein or otherwise, whether as a result of new information,
future events or otherwise.

 

Oil and Gas Measures

 

Where applicable, natural gas has been converted to barrels of oil equivalent
based on six thousand cubic feet to one barrel of oil. The barrel of oil
equivalent rate is based on an energy equivalent conversion method primarily
applicable at the burner tip, and given that the value ratio based on the
current price of crude oil as compared to natural gas is significantly
different than the energy equivalency of the 6:1 conversion ratio, utilizing
the 6:1 conversion ratio may be misleading as an indication of value.

 

Abbreviations

 

boe                  barrels of oil equivalent

boe/d               barrels of oil equivalent per day

MMcf/d             million cubic feet per day

 

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