CALGARY: Touchstone Exploration Inc. reports that the Company has completed drilling the Chinook-1 exploration well on the Ortoire exploration block, onshore in the Republic of Trinidad and Tobago and that the well encountered significant hydrocarbon accumulations based on wireline log data.
Chinook-1 (Touchstone 80% working interest operator, Heritage Petroleum Company Limited 20% working interest) is the Company’s third exploration well drilled on the Ortoire exploration block and the third hydrocarbon discovery since commencing the Ortoire exploration drilling program in August 2019.
Drilling samples and open hole wireline logs indicated that the Chinook-1 well encountered a significant Herrera turbidite package with a total thickness of 2,000 feet containing over 1,480 feet of sand. Open hole well logs and drilling samples indicated that these sands contain an aggregate 589 net feet of natural gas pay in three unique thrust sheets.
The well encountered 341 net feet of hydrocarbon pay in the Gr7a section of the overthrust Herrera sands at measured depths between 8,154 and 8,710 feet. The overthrust Gr7a sands were the Company’s primary target originally identified in the offsetting BW-7X well. 180 net feet of hydrocarbon pay was identified in the Gr7bc section of the intermediate Herrera sands at measured depths between 8,850 and 9,750 feet.
The sands encountered in this thrust sheet also correlate to the offsetting BW-7X well and were the Company’s secondary target. 68 net feet of hydrocarbon pay was identified in the Gr7bc section in a subthrust sheet of Herrera sands at measured depths between 9,750 and 10,003 feet.
This represents a previously unknown thrust sheet as no sands of this depth were previously penetrated in the offsetting wells.
In addition to the Herrera sandstones and the associated hydrocarbon discoveries, an additional 20 net feet of hydrocarbon pay was identified in the Cruse formation at depths between 2,996 and 3,021 feet. This represents a new discovery in the area that was not observed in offsetting well data.
In the first quarter of 2021, the Company expects to initiate a comprehensive completion and testing plan to evaluate the economic potential of the hydrocarbon sands. We expect the drilling rig to move to the Cascadura Deep location prior to the end of the month.
Paul R. Baay, President and Chief Executive Officer, commented: “The results from the Chinook well exceeded pre-drill expectations. The successful exploration well further confirms the geological model developed by our team and is expected to provide significant development opportunities in the Chinook area. With both the shallow and deepest zones being new to the area, it also identified future exploration opportunities. The Company’s focus is now on the drilling of the Cascadura Deep exploration well, which will impact the timing of Chinook-1 production testing operations to ensure the safety of operations. I would like to thank our contractors, suppliers, government officials and our staff who have worked together to keep us moving forward during these challenging times.”
James Shipka, Chief Operating Officer, stated: “We continue to see the significant and growing potential of the Ortoire exploration block with Chinook-1 encountering over 2,000 feet of turbidite deposits, nearly 1,500 feet of developed sands and a total of over 600 feet of natural gas pay. At a depth of 10,039 feet, Chinook-1 is one of the deepest wells drilled onshore Trinidad in almost a decade and verifies the evolution of our drilling practices since commencing our exploration program. For Chinook-1, we employed a synthetic oil-based mud system that assisted in drilling while reducing formation damage and incorporated a top drive onto the drilling rig to aid in drilling to greater depths. We intend to replicate these drilling practices moving forward given Chinook-1 demonstrated our ability to successfully conduct complex operations in a safe manner while strictly adhering to restrictions imposed during the ongoing COVID 19 pandemic.”
Touchstone Exploration Inc. is a Calgary based company engaged in the business of acquiring interests in petroleum and natural gas rights and the exploration, development, production and sale of petroleum and natural gas. Touchstone is currently active in onshore properties located in the Republic of Trinidad and Tobago. The Company’s common shares are traded on the Toronto Stock Exchange and the AIM market of the London Stock Exchange under the symbol “TXP”.