Touchstone Exploration Inc. ("Touchstone", "we", "our" or the "Company") (TSX, LSE: TXP) announces the completion of Cascadura-2ST1 and Cascadura-3ST1 well testing.
Highlights
- Cascadura-2ST1 Well: during an extended 48-hour test, Cascadura-2ST1 produced an average rate of approximately 4,950 boe/d, consisting of 26.4 MMcf/d of natural gas and 547 bbls/d of NGLs.
- Fluid Analysis for Cascadura-2ST1: initial field analysis shows the presence of liquids-rich natural gas with no produced water, similar to the characteristics of the Cascadura-1ST1 well.
- Cascadura-3ST1 Well: over a 68-hour testing period, Cascadura-3ST1 achieved an average production rate of approximately 1,100 boe/d, including 786 bbls/d of crude oil and 1.9 MMcf/d of natural gas.
- Fluid Analysis for Cascadura-3ST1: field assessments indicate medium API gravity crude oil with a 2 percent water cut, along with liquids-rich natural gas.
- Production Status: the Cascadura-2ST1 well is currently on continuous production to the Cascadura natural gas processing facility, and the Cascadura-3ST1 well is scheduled to commence permanent production within the next two days.
Paul R. Baay, President and Chief Executive Officer, commented:
"These encouraging well test results not only validate our geological models but also underscore the potential of the Cascadura field. With critical infrastructure in place between the wells, we are well-positioned to drill additional wells to further develop the field.
The Cascadura-2ST1 well test results are similar to those of Cascadura-1ST1, and the well is located at the boundary of our reserves booking. The Cascadura-3ST1 well test results are exceptionally promising, as they unlock a new oil and natural gas play on the eastern side of Fault C, extending into the recently acquired Rio Claro block. On a per barrel equivalent basis, oil currently generates nearly five times the revenue of natural gas, and with a 12.5 percent royalty on the block and anticipated operating expenses below our corporate average, the play offers strong cash flow generating capabilities.
Together, these wells represent a material increase to our base production, reinforce our development strategy and open the door to a new oil play."
Cascadura-2ST1 Testing
Cascadura-2ST1 production testing commenced on November 2, 2024, with flow tests spanning a total of 82 hours, comprised of an initial clean-up flow period, followed by an initial shut-in period and a four-step rate test, including a 48-hour extended flow test. All production accumulated during well testing was processed for sales at the Cascadura natural gas processing facility.
During the 48-hour extended portion of the flow test, the well produced at an average rate of approximately 4,950 boe/d (89 percent natural gas), including 26.4 MMcf/d of natural gas and an estimated 547 bbls/d of NGLs. The bottom hole flowing pressure of the well during this stage of testing averaged 3,497 psi through a 64 percent choke, representing a 15 percent reservoir pressure drawdown.
During testing, Cascadura-2ST1 yielded 44-degree API gravity NGLs at an average ratio of approximately 21 barrels of NGLs per MMcf of natural gas produced. Field analysis of the produced gas indicated liquids rich natural gas. Additional testing of fluid samples will be conducted to accurately assess the natural gas and associated liquids composition as well as the phase behaviour of the fluids within the reservoir.
The well was shut-in for a pressure build-up survey between November 6, 2024 and November 9, 2024 with further analysis to be conducted in identifying reservoir continuity.
On November 9, 2024 the Cascadura-2ST1 well was placed on continuous production at a choke restricted initial natural gas rate of approximately 20 MMcf/d and associated NGLs. This initial choke setting was selected based on well test analysis and is designed to maximize the ultimate recovery of both natural gas and NGLs from this section of the reservoir, ensuring optimal long-term performance.
Cascadura-3ST1 Testing
Cascadura-3ST1 flow testing commenced on November 6, 2024, with all production accumulated during testing processed for sales at the Cascadura natural gas processing facility.
During the 68-hour flow test, the well produced at an average rate of approximately 1,100 boe/d (71 percent oil), including an estimated 786 bbls/d of oil and 1.9 MMcf/d of natural gas. The wellhead flowing pressure during the flow test averaged 1,122 psi through choke settings of 25 percent to 35 percent, representing a 65 percent wellhead pressure drawdown.
During testing, Cascadura-3ST1 yielded 29-degree API gravity oil with a 2 percent water cut, as well as liquids rich natural gas. Additional testing of fluid samples will be conducted to accurately assess the liquids and natural gas compositions.
The well is currently shut-in for a pressure build-up survey with further analysis to be conducted in identifying reservoir parameters and bottom hole reservoir performance. Touchstone intends to place the Cascadura-3ST1 on continuous production over the next two days at a choke restricted initial rate of approximately 600 to 700 bbls/d of oil in order to optimize the well's long-term production potential.
Cascadura-3ST1 openhole wireline logs also indicate an additional unperforated sand with over 24 feet of net hydrocarbon pay. This sand is located at depths between 5,816 to 5,840 feet in the well, uphole of the current production zone. Given the strong flow test results from the well, this interval offers a potential future development opportunity for the Company to pursue.