Touchstone Exploration Inc (LON:TXP, TSE:TXP) shares advanced more than 20% after the company told investors that flowback testing of the Cascadura Deep-1 well, in Trinidad, confirmed a ‘liquids rich’ discovery.
The company, which owns an 80% stake in the well, highlighted that it had perforated the top 199 feet of 449 feet of potential pay identified previously, and an average flowback rate of 4,262 barrels of oil equivalent per day was measured. That rate comprised 22.9mln cubic feet of natural gas and 449 barrels of natural gas liquids (NGL).
A peak rate was measured at 4,567 boepd during the testing. The well flowed a total of 48.8mln cubic feet of natural gas and 1,081 barrels of NGLs during the testing programme.
Touchstone highlighted that field analysis has indicated liquids rich gas with no hydrogen sulfide and no produced water.
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The well is now shut-in for at least four weeks for a pressure build up test.
Chief executive Paul Baay said in a statement the well result shows clear future production opportunities.
"The positive test results from Cascadura Deep-1 further expands the opportunity on the Ortoire block as we now expect to have two distinct and separate sheets producing from two wells in the Cascadura structure,” Baay said.
“We will accelerate operations required to bring the two Cascadura wells onto production as the test results allow us to properly size surface facilities for reservoir management.
“We are also moving forward with the required applications to establish a second Cascadura surface location, designed for up to four development wells.”
In London’s early deals Touchstone shares gained 23.4p or 24.55% to change hands at 115p.