Touchstone Exploration’s latest data shows “significant size and reserves potential” at Cascadura Deep

Touchstone Exploration Inc (LON:TXP) has updated on the Cascadura Deep-1 well, in the Ortoire block in Trinidad, which has been boosted by new well pressure data.

The company, in a statement, noted that pressure gauges were recovered from the well on May 17 and analysis of the data confirms Cascadura Deep as a significant ‘liquids rich’ discovery. Touchstone’s findings indicate a pool of “significant size and reserves potential”.

Data from the pressure build-up test revealed that the formation was damaged to some extent during drilling, but the company said it is confident that the well will require no stimulation and that flow rates will be consistent with those during testing (which previously peaked at  4,567 boepd).

“The information has increased our confidence in the substantial size of the pool’s reserves and its potential deliverability,” said chief executive Paul Baay. “The data is consistent with the previous testing performed at Cascadura-1ST1, and we are encouraged by the lack of any boundary limits observed on the reservoir.”

Touchstone additionally updated on its broader operations in Trinidad where it says the Covid-19 ‘state of emergency’ has currently not had a significant impact on day-to-day work. It has, however, caused delay in construction and field work.

The company noted that it has completed design work for the production facility at the Cascadura site, giving it an initial production capacity of 90mln cubic feet per day which will be expandable up to 200mln in due course.

It is also working on the Environmental Impact Assessment for the development Cascadura, including a pre-approved multi-year program comprising new wells, completions, and the construction of infrastructure.

Touchstone has been working to drill the Royston well, the next exploration programme at Ortoire, though it has been delayed due to Covid-19 restrictions. Presently, the spud date is anticipated in June. A seismic programme is also slated for the Royston area in June.

Testing of the Chinook-1 well meanwhile continues, and the company is awaiting regulatory approval for a completion in the Cruse sands formation.

At the Coho site the construction of surface facilities is nearing completion and the company is presently awaiting work on associated infrastructure and a subsequent ‘tie-in’.

Cascadura Deep, Cascadura, Chinook, Coho and Royston are all part of the Ortoire block which has so far delivered positive results through drilling and testing, and is being prioritised strategically by the company. It promises to provide significant production growth, compared to the company’s existing production profile.

Further work programmes at Ortoire are expected to create further value catalysts for Touchstone.

“The drilling of Royston-1 will complete the first phase of our exploration program at Ortoire,” Paul Baay noted.

“The second phase is expected to include the Steelhead and Guabine prospects targeting the Herrera and Karamat Formations, as well as our Cretaceous prospect at Kraken.

“The phase two exploration program is anticipated to be performed in parallel with development programs at our confirmed Ortoire discoveries.

“Our future capital projects are anticipated to commence following the start of production from Coho and Cascadura, as these discoveries are expected to provide the funding for our future development and exploration programs.”

Story by ProactiveInvestors