Touchstone Exploration Inc is setting its sights on a potentially transformative venture in Trinidad and Tobago, targeting deep horizon drilling to access Cretaceous rocks akin to those found in the Guyana-Suriname basin. This initiative could be a significant breakthrough for both the country and Touchstone, promising substantial financial rewards.
Paul Baay, CEO of Touchstone, expressed confidence in their ability to unlock these deep horizons in Trinidad. He cited the successful application of Exxon’s knowledge and techniques from Guyana as a motivating factor. Baay believes the equipment and expertise present on the island bolster their prospects, making this an endeavour worth pursuing.
Trinidad and Tobago’s oil production has declined sharply, from a peak of nearly 250,000 barrels per day in the late 1970s to below 50,000 barrels per day currently. Gas production has also fallen, from 4.4 billion cubic feet per day in 2010 to 2.5 billion cubic feet per day. Finance Minister Colm Imbert recently highlighted the severe impact of this decline on the country’s revenue, warning of challenging times ahead until 2027.
The concept of finding substantial oil deposits in Trinidad’s deep horizon is not new. Exxon previously explored this area and reached the Cretaceous layer, but only found residual oil and gas without significant reservoirs. Baay explained that the main concern is the absence of a trap. He noted that hydrocarbons observed in the Herrera and Cruz formations likely originated in the Cretaceous and migrated upwards. Touchstone is optimistic about certain plays in less disturbed, tectonically stable areas that may contain interesting traps.
Baay revealed that analysis of oil from the younger Herrera rocks indicates it seeped from the Cretaceous layer below. This suggests hydrocarbons were present in the Cretaceous at some point. The crucial question now is whether there is a trap, and Baay believes some features appear undisturbed, warranting further investigation.
Touchstone successfully bid on blocks in the 2023 onshore auction and anticipates receiving the license by October. The company aims to commence drilling by 2025. Baay emphasized the importance of using existing 3D seismic data, which will be reprocessed to guide their efforts. He stated that a single-well programme may not suffice given exploration uncertainties, hence the plan to drill multiple wells.
Baay outlined Touchstone’s strategy to drill several wells, particularly targeting the Charuma and Cicero blocks, which hold promising Cretaceous prospects. The goal is to establish a three or four-well programme by 2025, benefiting both Touchstone and Trinidad. The planned wells will be drilled to depths of 15,000 feet, exceeding the usual 11,000 feet. The rig available in Trinidad can accommodate these deeper drilling requirements. As the project moves north to the Charuma block, the depth reduces to about 8,000 feet. Baay estimated each well would cost approximately US$10 million.
Final Thoughts, Touchstone’s deep horizon drilling project represents a potentially game-changing opportunity for Trinidad and Tobago’s energy sector. By leveraging expertise from successful ventures in Guyana, the company hopes to rejuvenate the country’s oil and gas production, offering significant economic benefits.
Touchstone Exploration Inc (LON:TXP) is a Canadian-based, international upstream oil and gas company currently active in the Republic of Trinidad and Tobago. Primera Oil and Gas is the Trinidadian subsidiary of Touchstone.
