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Press release from Touchstone Exploration
Calgary, Alberta - August 9, 2018 - Touchstone Exploration Inc. ("Touchstone" or the "Company") (TSX / LSE: TXP) announces an operational and drilling update.
• Achieved average second quarter 2018 crude oil production of 1,717 barrels per day ("bbls/d"),
representing increases of 11% and 29% from the first quarter of 2018 and the second quarter of
• Delivered July estimated crude oil production of 1,757 bbls/d.
• Drilled, cased and commenced completion operations on the sixth and seventh wells of our ten
well 2018 drilling campaign.
• Commenced pre-drilling operations on the eighth well of the 2018 program on our WD-8 block.
• Identified six independent exploratory drilling prospects on our Ortoire block.
The four wells drilled in the Company's 2017 drilling program continued to deliver significant volumes, with
combined July 2018 field estimated average production of 365 bbls/d. Three of the first five wells of the
Company's 2018 drilling campaign produced a combined July 2018 field estimated average production rate
of 184 bbls/d.
Forest Reserve WD-8 Block
FR-1792 and FR-1793 are undergoing optimization following their initial completions performed in May
2018. FR-1792 is currently flowing up casing at a field estimated rate of 92 bbls/d. The well had an initial
10-day average production rate of 220 bbls/d and a 30-day rate of 193 bbls/d. When the rate and pressure
in the well allow, the Company will run tubing and if necessary, place on pump. FR-1792 has produced
approximately 12,560 barrels of oil since being brought on production in early May, averaging 140 bbls/d
FR-1793 was placed on pump on July 26, 2018 and is currently producing at a field estimated rate of 38
bbls/d. The Company plans to optimize its production following the drilling of the eighth well of the 2018
program which shares a common surface location. The well had an initial 10-day average production rate
of 125 bbls/d and a 30-day rate of 74 bbls/d. Since being placed on production in mid May 2018, FR-1793
has produced approximately 3,782 barrels, representing an average of 44 bbls/d.
Grand Ravine WD-4 Block
PS-602 is producing at a field estimated rate of 50 bbls/d while the Company evaluates the potential to
comingle the current completion with a secondary zone already completed. This optimization has the
potential to double production from the well and will be performed as soon as pressures stabilize between
the two zones. PS-602 has produced approximately 6,909 barrels of crude oil since being put on production
on March 8, 2018, averaging 45 bbls/day to date.
Coora 2 Block
CO-370 and CO-371 have yet to be completed in their primary up-hole zones of interest as the Company
has been producing from deeper secondary opportunities in both wells. Current regulatory guidelines
require deeper prospects to be tested for commerciality before moving up-hole. The sands of the Upper
Cruse Formation have not proven to be economic based on initial testing with high gas rates being observed
in CO-370 and limited inflow being seen in CO-371. On a combined basis, the two wells are currently producing at a field estimated rate of 20 bbls/d. The Company has applied to move up-hole to the primary zone of interest in both wells and will commence operations once approvals are obtained. It is anticipated that both wells will be completed and on production before the end of August.
Coora 1 Block
Touchstone has completed the drilling of two wells on the Coora 1 block offsetting the successful CO-368
and CO-369 wells drilled in 2017. The two wells were drilled as step out locations to evaluate the extent of
the sands observed in the offset wells and to potentially access additional undeveloped reservoirs.
The CO-372 well was spud on June 15, 2018 and reached a total depth of 6,500 feet. The rig was released
on July 13, 2018, and the well was cased for oil production. Wireline logs indicated the presence of
approximately 413 feet of net oil pay as follows:
Forest formation 281 feet
Cruse formation 132 feet
Total (net) oil pay 413 feet
CO-373 was spud on July 17, 2018 and reached a total depth of 5,250 feet on August 3, 2018. Wireline
logs indicated the presence of approximately 240 feet of net oil pay as follows:
Forest formation 140 feet
Cruse formation 100 feet
Total (net) oil pay 240 feet
Completion operations have commenced on CO-372 and are expected to be concluded by early next week.
CO-373 will be completed immediately following CO-372, with both wells expected to be on production
within the next two weeks.
Forest Reserve WD-8 Block
Operations are currently underway to drill the eighth well of the 2018 drilling campaign on the Company's
WD-8 property. The new well will share a surface location with the previously drilled FR-1793 well and will
be targeting new reserves in an offsetting fault block. The well is expected to spud next week, and upon
completion, the Company will have met the minimum work obligations specified in the property's lease
operating agreement through the end of 2020.
The Company has identified six potential drilling locations on individual prospects within the exploration
property and has initiated the drilling application process. Touchstone has commenced applications for
certificates of environmental compliance with local regulatory authorities.
Notice of Interim Results
The Company expects to release its unaudited interim results for the three and six months ended June 30,
2018 on August 14, 2018.
Paul Baay, President and Chief Executive Officer, commented:
"I am pleased to report that we now have drilled the first seven wells of the ten well program. With four of
the seven wells yet to contribute to our current stabilized production, we are excited to increase production
in the near-term. With the combination of these four wells and the remaining three to be drilled this year, we are looking forward to a strong start to 2019. In addition to the existing drilling program, the Ortoire
exploration opportunities and future development potential are expected to contribute to our robust growth
objectives going forward."