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Touchstone Exploration makes significant gas discovery at Chinook well

Chief executive Paul Baay pointed out that Chinook-1 has exceeded the company's pre-drill expectations

Touchstone Exploration Inc - Touchstone Exploration makes significant gas discovery in Chinook well

Touchstone Exploration Inc (LON:TXP, TSE:TXP) has announced a significant gas discovery at the Chinook-1 exploration well in Trinidad.

Chinook-1 was drilled down to 10,039 feet and has encountered some 589 feet of net gas pay across three sections in the Herrara sands, and also saw 20 feet separately in the shallower Cruse formation, the group said.

In London, Touchstone shares were marked among the morning’s top movers as it gained 28p or 31.8% to trade at 116p.

The well was a follow up to the successful Cascadura gas discovery well, testing a separate structural formation to the south.

It is planned that Chinook-1 will be tested and completed for production during the first quarter of 2021.

READ: Touchstone reserves report confirms significance of Cascadura

In the meantime, operations move on to the drilling of the Cascadura Deep well, with rig mobilisation due to start before the end of this month.

Touchstone's chief executive Paul Baay pointed out that the results from Chinook-1 have so far 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,” Baay said in a statement.

“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.”

James Shipka, Touchstone chief operating officer added: “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 Trinidad in almost a decade and verifies the evolution of our drilling practices since commencing our exploration program.”

 

--UPDATED to include share price details--

Quick facts: Touchstone Exploration Inc

Price: 115.88 GBX

AIM:TXP
Market: AIM
Market Cap: £241.84 m
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