REG - Touchstone Explrtn. - RESULTS OF INITIAL ROYSTON-1X PRODUCTION TEST

Touchstone ExplorationAnnouncement

24/04/2023 07:15

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RNS Number : 1423X  Touchstone Exploration Inc.  24 April 2023

RESULTS OF INITIAL ROYSTON-1X PRODUCTION TEST

 

CALGARY, ALBERTA (April 24, 2023) - Touchstone Exploration Inc. ("Touchstone",
"we", "our" or the "Company") (TSX, LSE: TXP) announces that the initial
Royston-1X production test of the least prospective section of the well
confirmed the presence of light crude oil at non-commercial rates. Touchstone
has an 80 percent operating working interest in the well, which is located on
the Ortoire block onshore in the Republic of Trinidad and Tobago. Heritage
Petroleum Company Limited holds the remaining 20 percent working interest.

 

The first of potentially five production tests of the Royston-1X well
evaluated the lowest and least prospective section in the subthrust sheet of
the Herrera Formation at depths between 11,102 and 11,168 feet. During
testing, the well did not flow oil to surface. Swabbed volumes were analyzed
by a third party confirming 40 degrees API gravity formation crude oil,
representing the deepest oil encountered on the Ortoire block to date. This
section of the formation appears to be a low permeability reservoir, and
further testing will not be conducted.

 

Touchstone will continue testing operations with potentially four additional
tests targeting an aggregate 384 gross feet, with a program to evaluate each
identified sand interval independently. The next well test will target a gross
interval of 70 feet in the middle portion of the subthrust sheet and will be
performed with a service rig. Testing operations at this interval will
commence once the drilling rig is moved to the Cascadura C location, which we
anticipate occurring in late May when civil operations at the Cascadura C
location are scheduled to complete.

 

Paul Baay, President and Chief Executive Officer, commented:

 

"We are encouraged that the initial test of the Royston-1X well successfully
confirmed the presence of light oil in the subthrust sheet, validating our
internal wireline log analysis. The test results and crude oil analysis have
been crucial to establish the extent of the hydrocarbon column penetrated by
the wellbore, providing valuable baseline information for evaluating the log
data and defining future testing intervals.

 

The future production tests target uphole zones with a focus on productive
capability and ultimate development potential. As each test will be performed
independently, we expect a number of months of testing upon commencement of
the second test. We will update the market when results become available."

 

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

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)
Tel: +44 (0) 203 727 1000

Nick Hennis / Ben Brewerton
 
Email: touchstone@fticonsulting.com (mailto:touchstone@fticonsulting.com)

 

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 the Company's Royston-1X production
testing results and interpretations therefrom, the quality and quantity of
prospective hydrocarbon accumulations and target intervals based on internal
interpretations of wireline logs, and expected future production testing
operations, including future target intervals, ultimate production therefrom
and the timing thereof.

 

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.

 

Competent Persons Statement

 

In accordance with the AIM Rules for Companies, the technical information
contained in this announcement has been reviewed and approved by James Shipka,
Chief Operating Officer of Touchstone Exploration Inc. Mr. Shipka is a
qualified person as defined in the London Stock Exchange's Guidance Note for
Mining and Oil and Gas Companies and is a Fellow of the Geological Society of
London (BGS) as well as a member of the Canadian Society of Petroleum
Geologists and the Geological Society of Trinidad and Tobago. Mr. Shipka has a
Bachelor of Science in Geology from the University of Calgary and has over 30
years of oil and gas exploration and development experience.

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