Touchstone Exploration provides an operational update, highlighted by drilling results at the Cascadura-3ST1 delineation well and their CO-374 development well.

Highlights

• The Cascadura-3ST1 delineation well was drilled to a total depth of 8,252 feet, and openhole logs and drilling data indicated a total sand thickness of approximately 900 feet in the targeted Herrera Formation.
• The Cascadura-3ST1 well has been cased and production testing is scheduled to commence in the third quarter of 2024 directly into the Cascadura natural gas facility.
• The construction for the flowline from the Cascadura C surface location to the Cascadura natural gas processing facility is progressing, with anticipated completion in the third quarter of 2024.
• The hazard and operability analysis ("HAZOP") and engineering designs for the expansion of the Cascadura facility have been approved, and procurement for the expansion has commenced.
• The CO-374 development well on our CO-1 block was drilled to a total depth of 5,684 feet, with openhole logs and drilling data indicating a sand thickness of approximately 400 feet in the Forest Formation and approximately 300 feet in the Cruse Formation.
• The CO-374 well has been cased for crude oil production and will be completed once the CO-375 development well has been drilled and the rig is moved from the location.
• The CO-375 development well was spud on April 3, 2024 and is targeting to be drilled to a total depth of 6,500 feet.
• Achieved average net sales volumes of 7,015 boe/d in the first quarter of 2024.

Paul Baay, President and Chief Executive Officer, commented:

"We are pleased with the successful results from the two delineation wells at Cascadura, with both wells demonstrating the quality and scale of the structure. In addition, the Cascadura-3ST1 well is the first to cross the C-fault to the east side of the structure, an area where reserves have not been previously assigned. The CO-374 development well is also noteworthy, as it has the highest net pay we have observed to date on our crude oil legacy blocks."

Cascadura-3ST1 Drilling Results

The Cascadura-3ST1 delineation well was spud on March 4, 2024 from our Cascadura C surface location and reached a total depth of 8,252 feet on March 29, 2024. While drilling the well, a high-pressure gas kick was encountered at a depth of approximately 7,500 feet which resulted in wellbore instability issues. As a result, a portion of the wellbore was redrilled via a sidetrack.

Drilling samples and openhole wireline logs indicated over 900 feet of sand in the targeted Herrera Formation, with over 230 feet of net hydrocarbon pay. The top of the key Herrera Formation was detected at a measured depth of 6,852 feet, with sand and shows observed throughout the section to the total depth of the well. Based on these encouraging results, the well has been cased for future production.

We continue to expect to test the recently drilled Cascadura wells directly into the Cascadura natural gas facility in the third quarter of 2024.

Cascadura Infrastructure

We are currently progressing with the 1.6-kilometer road and flowline project, spanning from our Cascadura C surface location to the Cascadura natural gas facility. Presently, the flowline right-of-way has been fully cleared and graded, road construction is approximately 65 percent complete, and the watercourse culvert crossings are approximately 50 percent complete. Additionally, the procurement of the flowline has been finalized and the Company has issued a tender to local contractors for the installation of the flowline and bridge construction.

Progress has also been made on the Cascadura facility expansion project. The engineering designs and HAZOP have been completed and a new natural gas separator has been procured. This separator is expected to increase the facility's gross natural gas production capacity from approximately 90 MMcf/d to 140 MMcf/d.

The Cascadura flowline and infrastructure upgrades remain on track for completion in the third quarter of 2024.

Cascadura Optimization 

Since the facility commenced operations in September 2023, choke adjustments have been made to the Cascadura-1ST1 and Cascadura Deep-1 wells, resulting in moderate success in increasing natural gas production rates. Further, additional perforations were added to the Cascadura Deep-1 well with limited success. The Company continues to monitor production rates from the wells and will optimize production where possible.

CO-1 Drilling Operations 

The CO-374 development well, located on our CO-1 block, was spud on March 1, 2024 and reached a total depth of 5,684 feet on March 22, 2024. The targeted Lower Forest Formation was encountered at a depth of 3,491 feet and the Upper Cruse Formation at a depth of 4,578 feet. 

Drilling samples and openhole wireline logs indicated the presence of sands in both the Forest and Cruse Formations. The Forest Formation indicated 400 feet of sand, with approximately 250 feet of net hydrocarbon pay. Similarly, the Cruse Formation indicated 300 feet of sand, with 150 feet of net hydrocarbon pay. The well has been cased in preparation for oil production and will be perforated when the CO-375 well is drilled and the rig is relocated. 

The CO-375 development well, located on the same surface location as the CO-374 well, was spud on April 3, 2024 and is targeting oil sands in the Forest and Cruse Formations with a planned total depth of 6,500 feet. Operations are underway with surface casing set and cemented at a depth of 1,495 feet.

First Quarter 2024 Sales Volumes 

In the first quarter of 2024, we achieved average net sales volumes of 7,015 boe/d as follows:

• Cascadura contributed average net sales volumes of 5,389 boe/d consisting of:
• net natural gas sales volumes of 30.8 MMcf/d or 5,127 boe/d with an average realized price of $2.49 per Mcf; and
• net natural gas liquids volumes of 262 bbls/d with an average realized price of $69.60 per barrel;
• Coho field net average natural gas sales volumes were 2.8 MMcf/d or 460 boe/d at an average realized price of $2.28 per Mcf (excluding third party processing fees); and
• average net daily crude oil sales volumes were 1,166 bbls/d with an average realized price of $69.97 per barrel.

KeyFacts Energy Touchstone Exploration Trinidad and Tobago country profile