REG - Touchstone Explrtn. - COMMENCEMENT OF CASCADURA PRODUCTION

Touchstone ExplorationAnnouncement

07/09/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230907:nRSG6393La&default-theme=true

RNS Number : 6393L  Touchstone Exploration Inc.  07 September 2023

TOUCHSTONE ANNOUNCES COMMENCEMENT OF CASCADURA PRODUCTION

 

CALGARY, ALBERTA (September 7, 2023) - Touchstone Exploration Inc.
("Touchstone", "we", "our", "us" or the "Company") (TSX, LSE: TXP) announces
that the Cascadura natural gas and liquids facility has safely delivered first
production. 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.

 

Natural gas and associated liquids production commenced on September 6, 2023
and the Company intends to increase gross aggregate natural gas production
from the Cascadura-1ST1 and Cascadura Deep-1 wells to 60 MMcf/d (10,000 boe/d)
plus associated natural gas liquids over the coming weeks.

 

Natural gas and associated liquids production from the Company's Cascadura
wells is separated at the Cascadura facility on the Cascadura A surface
location. The facility operates as a self-contained system, capturing all
natural gas from the separators and liquids storage tanks and recycling it
back into the system to increase sales volumes. Additionally, the facility
sustains its own power requirements through onsite solar systems and natural
gas generators and is entirely independent of the Trinidad power grid. The
facility has a designed gross production capacity of 200 MMcf/d and 5,000
bbls/d of associated liquids, with a current gross production capacity of 90
MMcf/d and 2,250 bbls/d of associated liquids (17,250 boe/d).

 

The facility was constructed over the past year and represented approximately
110,000 work hours of local employment using Trinidadian contractors and
fabrication facilities. Throughout construction and commissioning, the project
recorded no lost time injuries.

 

Natural gas volumes are transported through a 20-inch pipeline constructed and
operated by The National Gas Company of Trinidad and Tobago Limited ("NGC")
and sold to NGC pursuant to an Ortoire natural gas sales agreement executed in
December 2020. Condensate volumes will be transported via tanker trucks to the
Company's Barrackpore liquids sales facility and sold to Heritage pursuant to
a Cascadura field liquids sales agreement executed on September 1, 2023.

 

Paul Baay, President and Chief Executive Officer, commented:

 

"The commencement of production from Cascadura marks the most significant
milestone to date in the Touchstone journey, transitioning us to a majority
natural gas weighted production company. Our fixed price natural gas agreement
will deliver a significantly increased predictable cashflow stream to be
reinvested in the future development of our extensive Trinidad asset base.
Cascadura represents the second producing area on our Ortoire block, where we
have multiple defined development prospects, alongside a significant pipeline
of long-term exploration prospects.

 

We would like to thank our partners and contractors for their support and
attention to safety during the facility construction and commissioning
process. Our team will now focus on optimizing Cascadura production and
planning a future drilling program to fill our existing Coho and Cascadura
facilities."

 

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

Scott Budau, Chief Financial Officer

James Shipka, Chief Operating Officer

 

Shore Capital (Nominated Advisor and Joint Broker)

Daniel Bush / Toby Gibbs / Iain
Sexton
Tel: +44 (0) 207 408 4090

 

Canaccord Genuity (Joint Broker)

Adam James / Gordon
Hamilton
 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

 

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. The forward-looking
statements contained in this announcement speak only as of the date thereof
and are expressly qualified by this cautionary statement.

 

Specifically, this announcement includes, but is not limited to,
forward-looking statements relating to Touchstone's expectation of future
Cascadura natural gas and liquids production rates and cash flows to be
derived therefrom; estimated Cascadura facility construction work-hours; and
the Company's development and exploration plans and strategies, including
internal development opportunities, future development drilling on the
Company's existing asset base and the anticipation of using existing sales
infrastructure for future operations.

 

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 2022
Annual Information Form dated March 23, 2023 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 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 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

 

bbls/d               barrels per day

boe/d               barrels of oil equivalent per day

MMcf/d             million cubic feet per day

 

This announcement contains inside information for the purposes of Article 7 of
the UK version of the Market Abuse Regulation (EU) No.596/2014, which forms
part of UK law by virtue of the European Union (Withdrawal) Act 2018.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDFQLLBXKLLBBQ