Touchstone Exploration Inc (AIM:TXP, TSX:TXP, OTC:PBEGF) told investors it has made a "great start" to the year, as it reported the successful drilling of the Cascadura-2 well, which promises to significantly increase production volumes at the field in Trinidad.
Drilled to a depth of 7,132 feet, Cascadura-2 was cut short of its intended 8,300 feet target depth as the company opted to preserve a significant pay section after encountering a high-pressure gas zone.
Analysis of drilling data revealed a total sand thickness of around 525 feet within the targeted Herrera formation.
The well, now being prepared for casing, is scheduled for production testing directly into the Cascadura natural gas facility in the third quarter. The company also noted the imminent start of drilling for the Cascadura-3 development well.
"The encouraging Cascadura-2 delineation well drilling results represent a great start to 2024,” chief executive Paul Baay said in a statement.
“Cascadura-2 has proved up the concept of highly productive sands extending significantly to the east of our initial Cascadura discovery.
“We estimate that the well was drilled for under $6 million on a gross basis, which further enhances the economics of this prolific hydrocarbon fairway.
“With this new data point we can design a multi year drilling program to fully develop the structure.
“This well has not defined the eastern most edge of the structure, which warrants further delineation through future drilling."
Touchstone, meanwhile, reported average net sales volume of 8,504 barrels of oil equivalent per day (boepd) for the fourth quarter of 2023, thanks to the substantial contribution of the Cascadura field which accounted for 6,854 boepd of the company’s production.
It added that net sales for the year averaged 3,981 boepd.
It also highlighted the continuing optimisation of production from the Cascadura Deep-1 and Cascadura-1ST1 wells, with the first stage of additional perforations completed in the Cascadura Deep well in late January.
Cascadura-1ST1 currently remains constricted by the size of the well’s choke, and the company said it expects to install a larger unit before the end of February, which is expected to result in higher gas production rates.
Also before the end of February, the company said it intends to drill a well at a surface location on the CO-1 block.