Canadian oil and gas company Touchstone Exploration has made a discovery of natural gas in the Cascadura-2 field.
In a news release yesterday, Touchstone said the well was expected to be drilled to a depth of 8,300 feet, but drilling was suspended at 7,132 feet to preserve the substantial pay section observed in the well after high-pressure gas zones were encountered.
“While we planned to drill the well to a total depth of 8,300 feet, the gas sands encountered proved difficult to manage, and we ceased drilling to preserve the substantial pay section observed in the well. Drilling samples and open hole wiring logs indicated over 525 feet of sands in the targeted Herrera formation with hydrocarbon shows observed in samples and at the surface throughout the primary intervals,” Touchstone said.
It mentioned that the top of the key Herrera formation was detected at a measured depth of 6,186 feet, with sand and shows observed throughout the section to the total depth of the well.
“Based on these encouraging results, we are currently installing casing for future production. We expect to test the well directly into the Cascadura natural gas facility in the third quarter of 2024,” Touchstone said.
The oil and gas company said the flow line procurement has commenced to tie in future production from the Cascadura C surface location to the Cascadura natural gas processing facility.
It explained that the drilling at its CO-1 block is scheduled to commence before the end of February, with two wells to be drilled from a single surface location.
Commenting on the discovery president and Chief Executive Officer, Paul Baay, said the Cascadura-2 delineation well drilling results represent a great start to 2024.
“Cascadura2 has proved up the concept of highly productive sands extending significantly to the east of our initial Cascadura discovery. We estimate that the well was drilled for under US$6 million on a gross basis, which further enhances the economics of this prolific hydrocarbon fairway. With this new data point, we can design a multi-year drilling program to fully develop the structure. This well has not defined the eastern edge of the structure, which warrants further delineation through future drilling,” Baay detailed.
Also, Touchstone reported average net sales volume of 8,504 barrels of oil equivalent per day (boepd) for the fourth quarter of 2023, with the Cascadura field contributing average net sales volumes of 6,854 boepd.
The Canadian company recorded average net sales volumes of 3,981 boepd for 2023, consisting of 35 per cent crude oil and liquids and 65 per cent natural gas volumes.
Touchstone has an 80 per cent operating working interest in the Cascadura field, which is located on the Ortoire block onshore, and Heritage Petroleum Company holds the remaining 20 per cent working interest.
The Oil and Gas company has a 100 percent working interest in the CO-1 block via a sublicense agreement with Heritage.