24th Aug 2023 09:18
(Alliance News) - Touchstone Exploration Inc on Thursday said it has completed its programme of five production test intervals at its Royston-1X well.
The Calgary, Canada-based oil and gas company focused on Trinidad & Tobago said the well is shut-in while it waits for the arrival of a service rig which will be used to put the well on pump to enable further testing.
"We expect that once the well is pumping, the hydrostatic pressure on the reservoir will be reduced, allowing the formation fluid to produce at increased rates," the company said.
The firm has an 80% operating interest in the Royston-1X well, as well as the Cascadura and Coho wells, Heritage Petroleum Company Ltd holds the remaining 20%.
Meanwhile, the company said its Cascadura facility is undergoing final commissioning. It said upon commission, it will begin to introduce natural gas and associated liquids its Cascadura-1ST1 and Cascadura Deep-1 wells.
At the Coho well, Touchstone said said it intends to reconfigure the producing reservoir intervals, noting that it will undertake this work after the Cascadura facility comes into operation.
Chief executive Paul Baay said: "Testing of the Royston-1X well was undertaken in a methodical manner to provide a comprehensive evaluation of the prospect. The flow and buildup tests for each interval has provided us with information that could be used for future stimulation of the well to optimize recovery and production rates. The fact that we have recovered light oil and significant pressures on each test is encouraging. We now need to evaluate the mechanics of how to produce the well at economically sustainable rates. By putting the well to pump for an extended period, we will be able to determine both the economics and viability of future operations, which could include artificial stimulation of the reservoir.
"Looking forward to the commencement of commercial production from the Cascadura facility, we now have in place the infrastructure to process and monetize all future potential drilling successes on the Ortoire block. This has been a long process, but we have now put in place the building blocks for a fully funded, full-cycle exploration and production strategy."
Touchstone shares fell 11% to 67.50 pence each on Thursday morning in London.
By Harvey Dorset, Alliance News reporter
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