Touchstone Exploration Inc (AIM:TXP, TSX:TXP, OTC:PBEGF) shares trade lower, down 9%, after it ended drilling operations in the Cascadura-4 development well earlier than planned.
The company, in a statement, flagged problems in the well (including a drill bit becoming and remaining stuck), which meant a full analysis of the reservoir could not be conducted.
Nevertheless, the company told investors that the available results are consistent with its geological model.
"While Cas-4ST2X presented challenges due to re-entering a previous wellbore, the systems implemented on the Cas-5 well have proven effective," said chief executive Paul Baay.
Touchstone said it would now start completion work for the Cascadura-5 well, and both the new wells are set to be tied into the existing natural gas facility.
In London, Touchstone shares were down 9% changing hands at 12.60p.