Touchstone Explrtn. - Operational Update

Touchstone Exploration

01/08/2024 07:00

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RNS Number : 7533Y  Touchstone Exploration Inc.  01 August 2024

 

OPERATIONAL UPDATE

 

CALGARY, ALBERTA (August 1, 2024) - Touchstone Exploration Inc. ("Touchstone",
"we", "our" or the "Company") (TSX, LSE: TXP) provides an operational update.

 

Highlights

·      The Cascadura natural gas facility expansion and construction of
the flowline from the Cascadura C surface location to the facility are
progressing as scheduled, and we continue to target initial production from
our Cascadura-2ST1 and Cascadura-3ST1 wells prior to the end of September
2024.

·      Achieved average net sales volumes of 5,432 boe/d in the second
quarter of 2024.

·      Our current average net field estimated production is
approximately 5,711 boe/d.

-     Following production optimization efforts at Cascadura, the
Cascadura-1ST1 and Cascadura Deep-1 wells are currently producing at a
combined net field estimated rate of approximately 4,082 boe/d.

-     The two CO-1 development wells drilled in 2024 commenced production
on May 27, 2024, with current aggregate net field estimated production of
approximately 212 bbls/d.

Cascadura

As part of our ongoing production optimization efforts at Cascadura, we
performed a recompletion on the Cascadura Deep-1 well by adding perforations
above the previously completed pay intervals. The well was shut in on June 24,
2024 and resumed production on July 4, 2024. Prior to the recompletion, the
Cascadura wells produced an aggregate net field estimated rate of 3,463 boe/d,
and current combined net field estimated production is approximately 4,082
boe/d.

 

We continue to make steady progress on the project connecting the Cascadura C
surface location to our Cascadura natural gas facility. Key milestones include
the completion of road and right-of-way construction and the installation of
watercourse culvert crossings. The bridge over the Poole River is
approximately fifty percent complete, with completion anticipated by the end
of August. Additionally, the flowline construction is advancing on schedule,
with approximately sixty-two percent of the pipeline welded and fifty-eight
percent trenched along the right of way.

 

Simultaneously, the Cascadura facility expansion is underway. An additional
natural gas separator has arrived at the facility, and the wellhead tie-in
piping and valves are being delivered to a third-party for fabrication prior
to installation.

 

We continue to target initial production from the Cascadura-2ST1 and
Cascadura-3ST1 wells prior to the end of September 2024.

 

CO-1 Production

The two development wells on our CO-1 block commenced production on May 27,
2024. Since first production, the two wells have produced an aggregate net
field estimated average of 167 bbls/d. In mid-July 2024, the Company performed
optimization work on the wells, and they are currently producing at a combined
net field estimated average rate of approximately 212 bbls/d.

 

Production Volumes

In the second quarter of 2024, we attained average net sales volumes of 5,432
boe/d, comprising:

·      average natural gas net sales volumes of 25 MMcf/d (4,173 boe/d)
at an average realized price of $2.48 per Mcf, with Cascadura Deep-1 shut in
for seven days during the period; and

·      average net daily crude oil and natural gas liquid sales volumes
of 1,259 bbls/d, with an average realized price of $73.64 per barrel.

Our current average net field estimated production is approximately 5,711
boe/d, comprising:

·      average natural gas volumes of 26.6 MMcf/d (4,426 boe/d); and

·      average crude oil and natural gas liquids volumes of 1,285
bbls/d.

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.

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

Brian Hollingshead, Executive Vice President Engineering and Business
Development

 

Shore Capital (Nominated Advisor and Joint Broker)

Daniel Bush / Toby Gibbs / Tom
Knibbs
Tel: +44 (0) 207 408 4090

 

Canaccord Genuity (Joint Broker)

Adam James / Charlie
Hammond
Tel: +44 (0) 207 523 8000

 

FTI Consulting (Financial PR)

Nick Hennis / Ben Brewerton
 
Tel: +44 (0) 203 727 1000

Email: touchstone@fticonsulting.com (mailto:touchstone@fticonsulting.com)

 

Advisories

 

Working Interest and Currency

 

Touchstone has an 80 percent operating working interest in the Cascadura
field, which is located on the Ortoire block onshore in the Republic of
Trinidad and Tobago. Heritage Petroleum Company Limited ("Heritage") holds the
remaining 20 percent working interest. Touchstone has a 100 percent working
interest in the CO-1 block via a sublicense agreement with Heritage. Unless
otherwise stated, all production volumes disclosed herein are based on Company
working interest before royalty burdens.

 

Forward-Looking Statements

 

The information provided in this announcement contains certain 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 "expect", "believe",
"intend", "estimate", "potential", "growth", "long-term", "anticipate",
"forecast" and similar expressions, or are events or conditions that "will",
"would", "could" or "should" occur or be achieved. The forward-looking
statements contained in this announcement speak only as of the date hereof and
are expressly qualified by this cautionary statement.

 

Specifically, this announcement includes, but is not limited to,
forward-looking statements relating to the Company's business plans,
strategies, priorities and development plans; field estimated production
rates, which may not necessarily translate to sales volumes; estimated
completion of Cascadura infrastructure operations; and ultimate production
from the Cascadura-2ST1 and Cascadura-3ST1 wells, including the timing
thereof. The Company's actual decisions, activities, results, performance, or
achievement could differ materially from those expressed in, or implied by,
such forward-looking statements and accordingly, no assurances can be given
that any of the events anticipated by the forward-looking statements will
transpire or occur or, if any of them do, what benefits that Touchstone will
derive from them.

 

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 2023
Annual Information Form dated March 20, 2024 which is available under the
Company's profile on SEDAR+ (www.sedarplus.ca (http://www.sedarplus.ca/) ) 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 or intent 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 Natural Gas Measures

 

Where applicable, natural gas has been converted to barrels of oil equivalent
(boe) based on six thousand cubic feet (Mcf) to one barrel (bbl) 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. This conversion factor is an industry accepted norm and is not based
on either energy content or prices.

 

Product Type Disclosures

 

This announcement includes references to Touchstone's average production for
the three months ended June 30, 2024 and current field estimated average
production. The following table provides production by product type
composition as defined by National Instrument 51-101 Standards of Disclosure
for Oil and Gas Activities ("NI 51-101").

 

 Period                              Light and Medium Crude Oil (bbls/d)  Heavy Crude Oil  Natural Gas Liquids (bbls/d)  Conventional Natural Gas (Mcf/d)  Total Oil Equivalent (boe/d)

                                                                          (bbls/d)

 Second quarter of 2024              1,100                                58               101                           25,036                            5,432
 Current field estimated production  1,183                                51               51                            26,558                            5,711

 

In this announcement, any references to "crude oil" refer to "light crude oil
and medium crude oil" and "heavy crude oil" combined product types; references
to "NGLs" refer to condensate; and references to "natural gas" refer to the
"conventional natural gas" product type, all as defined in NI 51-101. Any
references to "crude oil and liquids" herein include crude oil and NGLs.

Abbreviations

 

The following abbreviations are referenced in this announcement:

 

bbl(s)                barrel(s)

bbls/d               barrels per day

Mcf                  thousand cubic feet

MMcf                million cubic feet

MMcf/d             million cubic feet per day

NGL(s)              natural gas liquid(s)

boe                  barrels of oil equivalent

boe/d               barrels of oil equivalent per day

 

 

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