Touchstone Exploration Inc (AIM:TXP, TSX:TXP, OTC:PBEGF) told investors it now plans to put the Royston-1 well onto an extended production test, after confirming hydrocarbon flows in its third and final interval tested to date.
The third completion in the Royston-1 well was perforated on December 16 and flowed some 1,368 barrels of fluid with oil cuts indicated between 40% and 60%, the company said in a statement.
Aggregate flows from the well have amounted to around 1,786 bpd, averaging 705 barrels, with oil at 40% to 60%.
An extended well test will follow a 7 day pressure build up, and, will be designed to assess optimal flowing conditions to maximize production and data collection.
"This third test confirms the commerciality of the newly discovered light oil pool at Royston,” said chief executive Paul Baay.
“Data from all three of the production tests have confirmed that we have a long-term oil project that has the potential to provide future economic benefits to our shareholders and the country.”
Baay added: “All three of the tests encountered economic oil and confirmed the presence of hydrocarbon over the entire interval.
“This information, in the context of the 3,156-acre structure as defined in our 2D seismic interpretation, confirms a large volume of resources in place on the Royston property. To clarify, the final production test was the only test properly configured for an oil test and more accurately depicted the productive potential of the reservoir.”