Touchstone Exploration has announced that its first exploration well in the Ortoire block has discovered natural gas. According to company it encountered four zones with prospective natural gas accumulations.
Paul Baay, President and Chief Executive Officer noted that although Coho-1 targeted the smallest prospect in its Ortoire exploration inventory, the initial drilling results represent significant potential growth for the company.
“The presence of hydrocarbons in the turbidite sands of the Herrera confirms that our geological model is correct, and our drilling operations confirm that our team can drill future wells in a safe, timely and cost-efficient manner.
“This result gives the Board a great deal of confidence to move directly to the Cascadura location which will test a separate structure, targeting significant oil prospects in a similar geological setting,” Baay noted.
The Coho-1 and Cascadura-1 wells are the first two of a minimum of four exploration wells that Touchstone’s committed to drilling under its Ortoire Exploration and Production Licence.
The company has an 80 per cent working interest in the licence but is responsible for 100 per cent of the drilling, completion and testing costs associated with the initial four exploration wells. Heritage Petroleum Company Ltd holds the remaining 20 per cent working interest.
Coho-1 was drilled to a total depth of 8,560 feet in 28 days and is currently being cased for further evaluation.
Touchstone explained that the Upper Herrera Gr7b and Gr7c sands have indications of a total of 105 feet of net gas pay at measured depths between 5,486 and 7,240 feet.
The drilling rig will be now moved to the Company’s second exploration well on the Ortoire block.
Coho-1 well logs indicate significant prospective natural gas pay in four unique sand packages in the Herrera sands.
James Shipka, Chief Operating Officer also stated that the company was pleased to have found 105 feet of prospective gas pay at Coho-1 which its will now evaluate for commercial production. “The well was drilled to evaluate the untested Herrera Gr7 repeat section and follow up on the offsetting Corosan-1 well which was never placed on production.
“The primary objective in Coho-1 was natural gas but oil noted in the repeat section of the well confirms the presence of previously unproven hydrocarbons and confirms the potential for further exploration targets in the lower Herrera sand sheets within the Ortoire exploration block,” Shipka said.
Touchstone has no reserves associated with the Coho-1 and Cascadura-1 wells as per the Company’s December 31, 2018Reserves Report.
An independent prospect evaluation review prepared by GLJ Petroleum Consultants Ltd dated January 16, 2019 and effective December 31, 2018 estimated 2,058 thousand barrels of oil equivalent of unrisked Contingent Resources (Development Pending) and 1,190 thousand barrels of oil equivalent of unrisked Prospective Resources (Prospect) for the Company’s 80 per cent working interest in the Coho-1 well (residue natural gas and natural gas liquids).
Further, the evaluation estimated 944 thousand barrels of crude oil of unrisked Contingent Resources (Development Pending) for the Company’s 80 per cent working interest in the Cascadura structure.