Touchstone Explrtn. - SIGNIFICANT NATURAL GAS DISCOVERY AT CHINOOK
TOUCHSTONE ANNOUNCES SIGNIFICANT NATURAL GAS DISCOVERY AT CHINOOK
· Chinook-1 was drilled to a total depth of 10,039 feet to test a separate structural formation 1.5 kilometres south from the successful Cascadura gas discovery.
· Wireline logs indicated significant natural gas pay totalling approximately 589 net feet in three unique thrust sheets in the Herrera sands.
· Additional natural gas pay of approximately 20 net feet was encountered in the shallower Cruse formation.
· Completion and testing of the well is expected to be undertaken during the first quarter of 2021.
· We expect the drilling rig to mobilize to our Cascadura Deep location prior to the end of the month.
Drilling samples and open hole wireline logs indicated that the Chinook-1 well encountered a significant Herrera turbidite package with a total thickness of 2,000 feet containing over 1,480 feet of sand. Open hole well logs and drilling samples indicated that these sands contain an aggregate 589 net feet of natural gas pay in three unique thrust sheets. The well encountered 341 net feet of hydrocarbon pay in the Gr7a section of the overthrust Herrera sands at measured depths between 8,154 and 8,710 feet. The overthrust Gr7a sands were the Company's primary target originally identified in the offsetting BW-7X well. 180 net feet of hydrocarbon pay was identified in the Gr7bc section of the intermediate Herrera sands at measured depths between 8,850 and 9,750 feet. The sands encountered in this thrust sheet also correlate to the offsetting BW-7X well and were the Company's secondary target. 68 net feet of hydrocarbon pay was identified in the Gr7bc section in a subthrust sheet of Herrera sands at measured depths between 9,750 and 10,003 feet. This represents a previously unknown thrust sheet as no sands of this depth were previously penetrated in the offsetting wells.
In addition to the Herrera sandstones and the associated hydrocarbon discoveries, an additional 20 net feet of hydrocarbon pay was identified in the Cruse formation at depths between 2,996 and 3,021 feet. This represents a new discovery in the area that was not observed in offsetting well data.
In the first quarter of 2021, the Company expects to initiate a comprehensive completion and testing plan to evaluate the economic potential of the hydrocarbon sands. We expect the drilling rig to move to the Cascadura Deep location prior to the end of the month.
"The results from the Chinook well exceeded pre-drill expectations. The successful exploration well further confirms the geological model developed by our team and is expected to provide significant development opportunities in the Chinook area. With both the shallow and deepest zones being new to the area, it also identified future exploration opportunities. The Company's focus is now on the drilling of the Cascadura Deep exploration well, which will impact the timing of Chinook-1 production testing operations to ensure the safety of operations. I would like to thank our contractors, suppliers, government officials and our staff who have worked together to keep us moving forward during these challenging times."
"We continue to see the significant and growing potential of the Ortoire exploration block with Chinook-1 encountering over 2,000 feet of turbidite deposits, nearly 1,500 feet of developed sands and a total of over 600 feet of natural gas pay. At a depth of 10,039 feet, Chinook-1 is one of the deepest wells drilled onshore
The Chinook-1 exploration well was spud on
Despite being spud a mere 1.5 kilometres south of Cascadura, the Chinook anticline is separate from, and distinctly different than the Cascadura anticline to the north. The structural mapping on the Herrera interval reveals that Cascadura and Chinook are two anticlines converging toward each other, with Cascadura being a tighter but heavily stacked fold, thereby making it a taller structure, while Chinook is interpreted to be a simpler, broader fold.
The Chinook-1 well is the third of a four well exploration commitment under Touchstone's Ortoire Exploration and Production Licence. The Company has an 80% working interest in the licence but is responsible for 100% of the drilling, completion and testing costs associated with the initial four exploration wells. Heritage Petroleum Company Limited holds the remaining 20% working interest. Touchstone has no reserves associated with the Chinook-1 well included in the Company's
Further testing is required to determine the economic viability and potential of the well, and the Company plans to commence completion and production testing operations during the first quarter of 2021.
Touchstone Exploration Inc.
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Touchstone Exploration Inc.
Shore Capital (Nominated Advisor and Joint Broker)
Canaccord Genuity (Joint Broker)
Camarco (Financial PR)
Certain information provided in this announcement may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking information in this announcement may include, but is not limited to, statements relating to the quality and quantity of prospective hydrocarbon accumulations; the Company's exploration plans and strategies, including with respect to future well drilling, well completions and production testing, the timing and the potential commercial production viability thereof; and the sufficiency of resources and available financing to fund future exploration drilling, completions and production testing operations. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. Certain of these risks are set out in more detail in the Company's 2019 Annual Information Form dated
Competent Persons Statement
In accordance with the AIM Rules for Companies, the technical information contained in this announcement has been reviewed and approved by James Shipka, Chief Operating Officer of Touchstone Exploration Inc. Mr. Shipka is a qualified person as defined in the London Stock Exchange's Guidance Note for Mining and Oil and Gas Companies and is a Fellow of the Geological Society of London (BGS) as well as a member of the Canadian Society of Petroleum Geologists and the Geological Society of Trinidad and Tobago. Mr. Shipka has a Bachelor of Science in Geology from the University of Calgary and has over 30 years of oil and gas exploration and development experience.
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