6th Dec 2021 13:08
(Alliance News) - Touchstone Exploration Inc saw shares drop 14% on Monday following disappointing second test results at its onshore Trinidad-based Royston-1 oil well.
Shares in Touchstone were down 14% at 114.15 pence on Monday in London.
The Calgary, Canada-based oil and gas company confirmed light, sweet crude oil discoveries in its second Royston-1 well test.
The second test established a light oil reservoir with an average American Petroleum Institute gravity of 30 degrees in the Herrera Formation with flow rates of up to 430 barrels of oil per day.
This compares to the oil recovered in the first test which had an average API gravity of 33 degrees with flow rates rates of up to 550 barrels of oil per day.
Touchstone has since suspended the second test interval and is moving up-hole to the third production test which will complete the upper most portion of the overthrust sheet at the Herrera Formation, the company outlined.
Touchstone said its second exploration prospect, Kraken-1, is targeting the deep Cretaceous turbidite sands which it hopes will provide "exciting future drilling inventories".
President & Chief Executive Paul Baay said: "We are excited to announce this further, large oil discovery at Royston-1. The results are the reason why we find the geology in Trinidad's hydrocarbon charged basin so exciting. This oil discovery will allow us greater flexibility for the pace of development of the project, as we have the opportunity to design production facilities while we are selling crude oil testing volumes."
By Heather Rydings; [email protected]
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