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Touchstone Exploration kicks off new drilling campaign in Trinidad

Touchstone expects the campaign will be fully-funded by its current cash balances and cash flow from operations

oil and gas operations
Drilling is underway on the first of ten new wells

Touchstone Exploration Inc (LON:TXP, CVE:TXP) has kicked off a new ten-well drill programme in Trinidad.

The first well, PS-602, is located in the Grand Ravine WD-4 Block. It was spudded on February 3 and is being drilled down to around 5,500 feet, targeting two zones (the upper and lower Forest formations). These are the main producing formations at Grand Ravine, and the well is positioned in what’s seen as an ‘undrained’ portion of the property.

READ: Touchstone Exploration preparing new well locations to deliver further production growth

Touchstone expects to reach the target depth within the next ten days, and it could be online for production in fourteen after that.

This first well of ten will satisfy the minimum work requirement under the WD-4 lease agreements.

"The commencement of our ten well drilling program is further evidence of Touchstone transitioning its extensive reserves into production and cashflow,” said Paul Baay, Touchstone chief executive.

“It is extremely pleasing to be able to update the market, and our valued shareholders, with more positive news that we are delivering against our ambitious growth plans. If conditions allow, we hope to drill additional wells prior to year-end."

A second rig is expected to join the campaign during February, and it will subsequently start drilling a well at the Forest Reserve WD-8 before the end of the month. This rig is due to drill two wells at Forest Reserve, in separate locations.

WATCH: Touchstone funding news positive following strong drilling results

Two wells will also be drilled at the Coora-2 property where surface operations are underway in multiple locations. Here, the company intends to follow up successes in 2014. The two wells will satisfy the minimum work obligations for Coora-2.

Another two wells are planned for the Coora-1 property, from a single drilling location, following up two successful wells drilled last year.

The remaining three well locations are presently being documented, though they are anticipated to be across the Fyzabad and WD-4 blocks.

Touchstone expects the campaign will be fully-funded by its current cash balances and cash flows from operations. It is scheduled that all the drilling will be complete before August.

Quick facts: Touchstone Exploration Inc

Price: 165.4 GBX

AIM:TXP
Market: AIM
Market Cap: £345.19 m
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