As previously released, the
The first and deepest
"We are excited to discover a promising new light oil pool in the deepest test section of the
Based on wireline logging and drilling data, we are configuring the next two uphole primary production test intervals to evaluate liquids rich natural gas prospects, with flowback and full buildup analysis planned for each zone. We are currently preparing to perforate the second test interval in the overthrust sheet of the Herrera Formation, with a 270-foot gross interval (145 feet of net pay) targeting the Gr7bc sands. The third test is designed to evaluate an 84-foot interval (62 feet of net pay) at the top of the Gr7a Herrera sands. The second test is expected to be completed within the next three weeks, and we anticipate the third and final test to be completed by the end of
"We are very pleased with this oil discovery in the deepest sheet of the Herrera Formation, which demonstrates why we design our exploration wells to investigate prospects that lie beyond depths drilled by previous wells. Although we only tested 30 feet of net pay in the lower section, we believe the results strongly suggest that all the sands encountered in the intermediate sheet (270 gross feet with 71 net feet of pay) are hydrocarbon charged. This initial completion test was designed to evaluate potential natural gas volumes, and as such, the downhole assembly was not optimized for an oil discovery and test. At this depth, the larger tubing made it difficult to obtain a consistent crude oil flow rate but provided enough data to confirm the discovery of light oil in the well. Given
Touchstone's updated corporate presentation is available on our website (www.touchstoneexploration.com).
Advisories
Forward-Looking Statements
Certain information provided in this news release may constitute forward-looking statements and information (collectively, "forward-looking statements") within the meaning of applicable securities laws. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to assumptions, risks and uncertainties, many of which are beyond the control of the Company. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or are events or conditions that "will", "would", "may", "could" or "should" occur or be achieved.
Forward-looking statements in this news release may include, but is not limited to, statements relating to the quality and quantity of prospective hydrocarbon accumulations; well test results and the Company's interpretation thereof; and the Company's exploration plans and strategies, including anticipated production testing operations and timing thereof. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. Certain of these risks are set out in more detail in the Company's 2020 Annual Information Form dated
Oil and Gas Matters
References in this news release to production test rates and initial flow rates are useful in confirming the presence of hydrocarbons; however, such rates are not determinative of the rates at which the well will commence production and decline thereafter and are not indicative of long-term performance or of ultimate recovery. Additionally, such rates may also include recovered "load oil" fluids used in well completion stimulation. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for the Company. A final pressure transient analysis and/or well-test interpretation has yet to be carried out in respect of the well. Accordingly, the Company cautions that the production test results contained herein should be considered preliminary.
Abbreviations
bbls/d | barrels per day |
API | |
psi | pounds per square inch |
SOURCE
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