Touchstone Exploration Inc (LON:TXP) has announced 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, Touchstone Exploration 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.“
