Wednesday 18 September, 2019

Canadian company makes onshore gas find in Ortoire

Canadian-based Touchstone Exploration has made an onshore gas discovery in its Ortoire exploration block.

Touchstone announced that its first exploration well encountered four zones with prospective natural gas accumulations.

The Coho-1 exploration well was spud on August 7 and reached a total measured depth of 8,560 feet (8,543 feet true vertical depth) on September 3 using Well Services Petroleum Ltd. Rig #80.

In a statement, the company indicated that the Coho-1 well was drilled on time and within budget. It further stated that Touchstone is initiating a comprehensive testing plan to evaluate the economic potential of the prospective gas sands.

Following rig release at Coho-1, Well Services Petroleum Ltd. Rig #80 will be mobilised to the Cascadura-1 location - the second of four initial exploration wells the Company plans to drill on the Ortoire property. Cascadura-1 is expected to be drilled to a total depth of 8,190 feet and is targeting two oil zones in the Herrera sands in a fault block separate from the discovery at Coho-1.

Touchstone President and Chief Executive Officer, Paul R. Baay, said the results spell positive news for the company.

"Although Coho-1 targeted the smallest prospect in our 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 and Management 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."

Meanwhile, Chief Operating Officer, James Shipka, said Touchstone was pleased to have found 105 feet of prospective gas pay at Coho-1 which will then be evaluated 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."

The Coho-1 and Cascadura-1 wells are the first two of four minimum commitment earning exploration wells under Touchstone's Ortoire Exploration and Production Licence.

The Company has an 80 percent working interest in the licence but is responsible for 100 percent of the drilling, completion and testing costs associated with the initial four exploration wells.

Heritage Petroleum Company Limited holds the remaining 20 percent working interest.

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