Touchstone Explrtn. - TOUCHSTONE ANNOUNCES COHO-1 GAS TEST OF 17.5 MMCFD
TOUCHSTONE ANNOUNCES COHO-1 GAS TEST OF 17.5 MMCFD
As previously reported, the Coho-1 exploration well (Touchstone 80% working interest operator,
Production testing of the Herrera Gr7b formation commenced on
Given the higher than expected initial test rates and due to equipment limitations and concerns regarding the environmental impact of the test flare, the Company chose to shorten the flowback period and to conduct the balance of the testing at restricted drawdowns. 13 hours currently remain in the final 24-hour stabilized flow period. The average stabilized test rate over the past 11 hours was 11.8 MMCFD (1,963 BOEPD) at an average wellhead pressure of 2,795 psi on a restricted 28/64" choke, resulting in an estimated 18% draw down.
Over the current 37-hour flowback and production testing period, a total of 11.2 million cubic feet ("MMCF") of natural gas and 298 barrels of water have been recovered, including 37 barrels of load water. Water production averaged 23 barrels per MMCF of natural gas, significantly below the Company's expectations based on offset well data.
Upon completion of the stabilized flow test, the well will be shut-in for an extended pressure build-up test. The Company will release full analysis of the pressure build-up test when full results are available.
"These positive well test results represent a new era for Touchstone as we expect to add significant natural gas volumes to our production base. The results outline the opportunities that still exist for onshore
For further information about Touchstone, please visit our website at www.touchstoneexploration.com or contact:
Shore Capital (Nominated Advisor and Joint Broker)
GMP FirstEnergy (Joint Broker)
Camarco (Financial PR)
Nick Hennis / Jane Glover Tel: +44 (0) 203 781 8330
Certain information provided in this announcement may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking information in this announcement may include, but is not limited to, statements with respect to the quality and quantity of prospective hydrocarbon accumulations; initial well test results; the Company's anticipated development and timing of the Coho-1 well including potential tie-in and production therefrom; and the sufficiency of resources and available financing to fund future completion 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 2018 Annual Information Form dated
Oil and Gas Matters
References in this announcement to production test rates and initial flow rates are useful in confirming the presence of hydrocarbons; however, such rates are not determinative of the rates at which such wells will commence production and decline thereafter and are not indicative of long-term performance or of ultimate recovery. Additionally, such rates may also include recovered "load oil" fluids used in well completion stimulation. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for the Company. A pressure transient analysis or well-test interpretation has not been carried out in respect of the well. Accordingly, the Company cautions that the test results should be considered preliminary.
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.
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
This information is provided by RNS, the news service of the
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