Touch­stone’s Q2 crude oil sales at 1,335 bbl/d

Stockwatch Daily - - ENERGY - Mr. Paul Baay re­ports

TOUCH­STONE EX­PLO­RATION Inc. has pro­vided the fol­low­ing oper­a­tional up­date for the three months ended June 30, 2017.

High­lights:

•Av­er­age field es­ti­mated daily oil pro­duc­tion for the first two weeks of July was 1,455 bbl/d;

• The ini­tial two wells of the 2017 drilling pro­gram were com­pleted and placed on pro­duc­tion; the av­er­age com­bined field es­ti­mated oil pro­duc­tion for the first two weeks of July was 203 bbl/d;

• The fi­nal two wells of the 2017 drilling pro­gram have been drilled and cased for oil pro­duc­tion en­coun­ter­ing a com­bined net oil pay of ap­prox­i­mately 637 feet.

Pro­duc­tion and pric­ing

Sec­ond quar­ter 2017 crude oil pro­duc­tion was 1,335 bbl/d, rep­re­sent­ing an in­crease of 4 per cent from 1,280 bbl/d pro­duced in the first quar­ter of 2017. Re­al­ized sec­ond quar­ter 2017 pric­ing for crude oil was $45.51 (U.S.) per bar­rel ver­sus $48.20 (U.S.) per bar­rel re­ceived in the first quar­ter of 2017. The 6-per-cent de­crease was a re­sult of an 8-per-cent de­crease in the Brent ref­er­ence price over the pe­riod and a re­duc­tion in the re­al­ized Brent ref­er­ence dif­fer­en­tial from ap­prox­i­mately 10 per cent to 8 per cent.

Drilling cam­paign

Coora 1 block

In the sec­ond quar­ter of 2017, the com­pany drilled and com­pleted two wells (CO-368 and CO369) on the Coora 1 prop­erty. Both wells are cur­rently on pro­duc­tion (100 per cent oil).

CO-368 was per­fo­rated on June 13, 2017, with the ini­tial com­ple­tion tar­get­ing 15 feet of the es­ti­mated 195 feet of oil-bear­ing sand en­coun­tered in the Cruse for­ma­tion. The well is cur­rently flow­ing 27-de­gree API oil with av­er­age daily oil pro­duc­tion over the first 26 days of 111 bbl/d. The com­pany an­tic­i­pates the well will be placed on pump once the pres­sure de­creases. This well is the deep­est well the com­pany has drilled on the Coora 1 block and has ver­i­fied the ge­o­log­i­cal con­cept that many of the deeper sands in the area are highly pro­duc­tive.

The CO-369 well was per­fo­rated on June 23, 2017, with the ini­tial com­ple­tion tar­get­ing ap­prox­i­mately 97 feet of the es­ti­mated 150 feet of oil-bear­ing sands in the Cruse for­ma­tion. The well was im­me­di­ately put to pump with an av­er­age daily oil pro­duc­tion rate of 151 bbl/d over the first 17 days of pro­duc­tion. The well has over 2,000 feet of pump sub­mer­gence and will be fur­ther op­ti­mized once ad­di­tional pres­sure data is re­ceived.

Grand Ravine WD-4 block

The PS-598 well was spud­ded on June 8, 2017, and was drilled to a to­tal depth of 7,340 feet on June 29, 2017. Drilling was in­ter­rupted due to trop­i­cal storm Bret but no ad­di­tional costs were in­curred due to the de­lay. Wire­line logs in­di­cate ap­prox­i­mately 355 feet of net oil pay.

The com­pany cased the well for oil pro­duc­tion and has de­ferred the com­ple­tion of the well sub­se­quent to the drilling of PS-599, as the two wells share a com­mon sur­face lo­ca­tion. The ini­tial com­ple­tion in the PS-598 well will tar­get the low­est 36 feet of oil sands en­coun­tered in the Cruse for­ma­tion.

The PS-599 well was spud­ded on June 30, 2017, and reached a to­tal depth of 6,926 feet on July 11, 2017. The well was drilled to ac­cess hy­dro­car­bons in a sep­a­rate, but ad­join­ing fault block to the PS-598 well. Wire­line logs in­di­cate the pres­ence of ap­prox­i­mately 282 feet of net oil pay in both the For­est and Cruse for­ma­tions.

The com­pany will com­mence com­ple­tion oper­a­tions on the PS-598 well as soon as the drilling rig has moved off lo­ca­tion and will com­plete the Cruse sands in the PS-599 well im­me­di­ately there­after. The ini­tial com­ple­tion in the PS-599 well will tar­get low­er­most 60 feet of oil sands en­coun­tered in the Cruse for­ma­tion.

We seek Safe Har­bor.

Erika Flores con­densed this news news re­lease (erikaf@stock­watch.com).

Paul Ray­mond Baay, Ken­neth Richard McKin­non, Peter Wil­liam Ni­col, Thomas Ed­ward Valen­tine, Har­rie Vre­den­burg, John David Wright

(TXP) Shares: 103,137,170

Newspapers in English

Newspapers from Canada

© PressReader. All rights reserved.