Touchstone Exploration Inc (AIM:TXP, TSX:TXP, OTC:PBEGF) chief executive Paul Baay described himself as still encouraged, despite an initially disappointing result from one of the Royston-1X well’s test sections.
The company, in a statement, noted that a test of the deepest and least productive section of the well had confirmed the presence of light crude oil at non-commercial rates.
It was the first of a potential five production tests in Royston 1-X. It was found to be a low permeability reservoir in this location.
Testing will continue, with the next targets tested independently – the next interval will be a 70 foot section and the test is expected to begin in late May.
"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,” Baay said.
“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," he added