Touchstone Exploration Inc (PBEGF)

[pro_s2009]

Malcys update:


https://www.malcysblog.com/2021/09/oil-price-scirocco-touchstone-and-finally/


........Touchstone Exploration

Touchstone reports that the Company has completed drilling the Royston-1 exploration well and has announced that the well encountered ‘substantial hydrocarbon accumulations based on drilling and wireline log data’.

Royston-1 was drilled to a total depth of 10,700 feet and is the deepest exploration well drilled by Touchstone to date, mud logging and wireline logs indicate hydrocarbon accumulations in the Lower Cruse, Karamat and Herrera sections.

The well encountered a total Herrera turbidite thickness of 1,014 feet (609 feet net sand) in two stacked thrust sheets. An aggregate 393 gross feet of hydrocarbon pay was identified in two unique thrust sheets in the Herrera sands from 9,700 feet to total depth, with wireline logs indicating that the well was in hydrocarbon pay at total depth.

The well is currently being cased and prepared for production testing of the Herrera Formation.

Paul Baay, President and Chief Executive Officer, commented:

“The Royston-1 well was the fifth and final well of the first phase of our exploration drilling program on the Ortoire block, with logging data indicating better than expected results. The amount of identified hydrocarbon pay further verifies the opportunity in the block for our future phase two exploration program. Prior to drilling, we targeted 200 feet of gross sand pay, with results almost doubling our expectations. The team has commenced planning production testing operations in the Herrera Formation using the same equipment that verified the Cascadura discovery. I would also like to commend the team for drilling the well safely and in adherence to all health protocols. With the assistance of the new seismic and upcoming production testing data, we anticipate this to be the largest geological structure identified on the block in the Herrera Formation.”

This looks like a very decent well despite the lower porosity, which incidentally is like other wells in the programme and not markedly different to when Shell was producing. The pay was nearly double the expectations and the whole Ortoire area looks fit for further drilling and has so far more than matched expectations. I don’t normally quote more than one company executive but I think that COO James Shipka provides really important data here as the company look to identify the second exploration phase.

Readers know that I am a big fan of Touchstone whose value is way above the current price even after today’s run up.........