Touchstone Exploration Inc (AIM:TXP, TSX:TXP, OTC:PBEGF) has significantly expanded its borrowing as it kicks off the next phase of well drilling at the productive Cascadura field in Trinidad.
The company, in a statement, told investors that it has increased its borrowing capacity by some $13 million – with a new $10 million five-year bank loan and a $3 million increase in its revolving credit facility, which increases from $7 million to $10 million.
It noted that the expanded capacity will support the 2024 capital programme which includes the drilling of new wells to further grow production.
On Monday, Touchstone also confirmed the start of drilling at the Cascadura and the CO-1 fields, with operations now underway for the Cascadura-3 and CO-374 wells.
The CO-374 well was spud on 28 February, targeting crude oil-charged sands in the Cruse and Forest formations. It is expected to be drilled to a total depth of 6,600 feet.
Cascadura-3 was spud on 1 March, from the Cascadura C location on the Ortoire block, it is targeting gas-charged sands in the Herrera formation northeast of the recently drilled Cascadura-2 well. It is expected to be drilled to an anticipated total depth of 7,000 feet.
Touchstone added that Cascadura-2 well has been successfully cased after operations encountered wellbore instability issues due to high gas pressures that resulted in the need to sidetrack a portion of the well. Work meanwhile continues on the necessary infrastructure additions to tie the Cascadura-2 well into the Cascadura natural gas facility.
Meanwhile, the company intends to conduct site preparation at the Cascadura B location which is approved for the drilling of up to four development wells.