REG - Touchstone Explrtn. - ROYSTON-1X REACHES TOTAL DEPTH

Touchstone ExplorationAnnouncement

02/03/2023 07:00

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RNS Number : 6476R  Touchstone Exploration Inc.  02 March 2023

ROYSTON-1X REACHES TOTAL DEPTH

 

CALGARY, ALBERTA (March 2, 2023) - Touchstone Exploration Inc. ("Touchstone",
"we", "our", "us" or the "Company") (TSX, LSE: TXP) reports that the Company
has completed drilling the Royston-1X exploration well and is pleased to
announce that the well encountered substantial sands in the targeted Herrera
Formation. 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 ("Heritage") holds the
remaining 20 percent working interest.

 

Highlights

 •    Royston-1X was drilled to a total depth of 11,316 feet and is the deepest
      exploration well drilled by Touchstone.
 •    Exceeding pre-drill expectations, the well encountered an encouraging total
      Herrera turbidite thickness of 1,664 feet with an estimated 765 feet of net
      sand penetrated.
 •    Mud logging and wireline logs indicate hydrocarbon accumulations in the
      targeted Herrera sections.
 •    Drilling operations took approximately 25 days which was ahead of schedule and
      on budget.
 •    The well is currently being cased and prepared for production testing.

Paul Baay, President and Chief Executive Officer, commented:

 

"We are encouraged by the Royston-1X drilling results yet remain cautiously
optimistic until production testing is completed. Not only is this the deepest
well we have drilled to date but it also is the deepest well drilled onshore
Trinidad in the last 15 years. The fact that the well was drilled ahead of
schedule and within our budget can be attributed to the best-in-class industry
standards that Touchstone is driving within Trinidad, both through the
introduction of new equipment, as well as additional expertise that we have
added to our technical team.

 

We are encouraged by the hydrocarbon indications internally interpreted from
openhole wireline logs, which show that the well successfully intersected the
Herrera Formation through the subthrust level in one of the thickest turbidite
sections observed in any of our previous wells. Once the drilling pad is
completed at our Cascadura C location, the drilling rig will be moved off the
Royston location, and we will commence a comprehensive testing program that is
currently anticipated to begin in April. We will update the market when
results become available."

 

Royston-1X Drilling

 

Royston-1X was drilled using Star Valley Drilling Rig #205 and is a sidetrack
from the original Royston-1 exploration well drilled by Touchstone in 2021.
Royston-1X kicked off from the Royston-1 wellbore at a depth of approximately
7,150 feet and reached total measured depth of 11,316 feet on February 24,
2023. The sidetrack well was designed to further explore the thick sequence of
Herrera sandstones encountered at Royston-1.

Drilling samples and openhole wireline logs indicated that the well
encountered a significant Herrera turbidite package with aggregate estimated
thickness in excess of 1,660 feet. The Herrera turbidite section was
identified at a measured depth of 9,558 feet, approximately 330 feet
structurally higher than in the original Royston-1 well and penetrated
approximately 310 feet of Herrera section below what was observed in
Royston-1. The overall Herrera section drilled in Royston-1X contains
approximately 765 net feet of sand. The well is currently being cased, and we
plan to commence completion and testing operations in April 2023 which are
anticipated to include multiple test intervals.

The Royston-1X well was the sixth exploration well (4.8 net) drilled under
Touchstone's Ortoire Exploration and Production Licence. The Company has an 80
percent working interest in the licence but is responsible for 100 percent of
the drilling, completion and testing costs associated with this well. Heritage
holds the remaining 20 percent working interest.

 

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)
 Nick Hennis / Ben Brewerton                         Tel: +44 (0) 203 727 1000
                                                     Email : touchstone@fticonsulting.com (mailto:touchstone@fticonsulting.com)

 

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".

 

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 the quality and quantity of prospective
hydrocarbon accumulations based on internal interpretations of wireline logs
and the Company's capital plans and strategies, including anticipated
Royston-1X casing and completion operations 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 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 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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