Touchstone Exploration Inc. (“Touchstone”) (TXP) announces the following operational update.
Highlights
- Achieved November and December 2017 crude oil sales of 1,536 and 1,337 barrels per day (“bbls/d”), respectively.
- Realized average prices of US$56.54 per barrel and US$57.18 per barrel for November and December crude oil volumes, respectively.
- Production from the four wells drilled in 2017 remained strong, contributing an average of 283 bbls/d to November and December 2017 production.
- Preparation of the initial four 2018 drilling program locations has commenced; the first well is expected to spud on or about January 22, 2018.
- Current field estimated production is approximately 1,492 bbls/d (based on the previous seven-day average).
Production
Touchstone’s November and December 2017 crude oil production averaged 1,435 bbls/d. December sales
volumes were lower based on an inventory build of approximately 2,800 barrels that is expected to be
monetized subsequent to year-end.
Average production for the fourth quarter of 2017 was 1,448 bbls/d, representing an increase of 1 percent
from the third quarter of 2017 and 16 percent from the prior year comparative period. Realized fourth quarter
2017 pricing for crude oil was US$54.83 per barrel, which represented an increase of 15 percent from the
US$47.53 per barrel received in the third quarter of 2017.
On an annual basis, average crude oil production in 2017 was 1,375 bbls/d, a 6 percent increase from
1,301 bbls/d produced in 2016. Touchstone’s 2017 realized average price of US$49.18 per barrel was 29
percent greater than the average of US$38.10 received in 2016.
Drilling
Touchstone is currently constructing four surface locations to accommodate the Company’s first five wells
planned for 2018 with construction of the first three locations expected to be completed by the end of
January 2018. The wells will be drilled on a fixed cost basis using local equipment and personnel.
Touchstone has successfully contracted a second drilling rig to accelerate the drilling program. Operations
are expected to begin on the Grande Ravine WD-4 block with the drilling of a 5,800 foot development
location with the second rig targeting a 4,700 foot development location on the Forest Reserve WD-8 block.
Thereafter, the Company plans to drill one additional well at WD-8 and two wells from a single surface
location on its Coora 2 property. Touchstone is at various stages of preparing and receiving approval for
the second five wells of the 2018 program; the Company expects to commence operations immediately
following the drilling of the Coora 2 wells.
Operations
The Company completed five recompletions in December 2017, bringing the total number of recompletions
performed in 2017 to 20. The recompletions were perforated prior to year-end; however, the incremental
production impact will not be realized until the end of January once all load fluids have been recovered and
production has stabilized. The Company is targeting to perform 24 recompletions in 2018.