Touchstone Exploration Inc. Provides Operations Update for the Month of June and for the First 13 Days of July 2014
Jul 16 14
Touchstone Exploration Inc. provided operations update for the first 13 days of July 2014. The company has achieved average field estimated production for the first 13 days of July of 2,275 barrels per day; 1,769 barrels per day in Trinidad and 506 barrels per day in Canada. The company has drilled and cased four (3.16 net) wells in Trinidad. To date the company has successfully drilled four (3.16 net) wells in total. Two (2.0 net) wells were drilled on the Forest Reserve WD-8 Block, one (1.0 net) well on the Grand Ravine WD-4 Block, and one (0.16 net) well on the Cory Moruga Block. The two wells on the WD-8 property were drilled to total measured depths of approximately 4,000 feet. The first well (FR-1747) encountered 302 feet of net oil pay of which 170 feet is in the Lower Forest formation, 55 feet in the Upper Cruse, 18 feet in the Middle Cruse and 59 feet in the Lower Cruse formation. The well will initially be competed in the Lower Cruse formation. The second well (FR-1748) encountered in excess of 280 feet of net oil pay in the shallow section, of which 110 feet is in the Lower Forest, 85 feet in the Upper Cruse, and 85 feet in the Middle Cruse formation. Additional oil pay in the deeper Lower Cruse section will be quantified following cased hole logging operations. The well on the WD-4 property (PS-579) was drilled to a total depth of 6,800 feet. The well encountered 585 feet of net oil pay of which 231 feet is in the Upper Forest formation, 313 feet in the Lower Forest formation and 41 feet in the Upper Cruse formation. The Cory Moruga (16.2% non-operated working interest) well successfully reached its targeted total depth of approximately 6,600 feet. Testing and completion programs are currently being drafted by the contract operator for execution in the near future. With these results, the company remains on pace to complete the intended 21.3 well drilling program in 2014.
During June, the Kerrobert property produced approximately 410 barrels of oil per day. The company has undergone a cost-cutting strategy at the property to improve field netbacks. As a result, second quarter operating results for the property are expected to break even as the Company has reduced air injection costs and the associated operating expenses. In the second quarter the company continued operations on a CSS pilot project in the Bluesky formation at Dawson with two (2.0 net) wells being placed on production in early June. These wells were switched over to oil production following six months of steam injection and are in the early stages of production. As modeled, initial recovery was predominantly water, however oil cuts have rapidly increased in both operated wells and the company achieved a combined June 30, 2014 field estimated exit rate of approximately 110 barrels of oil per day. The company will continue to monitor the results of this initial CSS production cycle and will continue future development planning for the Dawson property based on the results of the pilot.
Touchstone Exploration Inc. Announces Repayment of Long-Term Debt
Jul 2 14
Touchstone Exploration Inc. announced that it has made a $21.6 million principal prepayment of its existing 9.25% senior secured long-term debt facility arranged with Norrep Credit Opportunities Fund, LP. With the payment Touchstone has fully repaid the $24.0 million long-term loan entered into on June 29, 2012 and terminated the loan facility two years ahead of its June 29, 2016 maturity date. As a result of this payment, the company has no outstanding secured debt and is free of the covenants contained in the loan. The funds for the $21.6 million repayment were available internally from the disposition of certain non-core assets resulting from the previously announced combination of Petrobank Energy and Resources Ltd. and Touchstone Exploration Inc. by way of a statutory plan of arrangement. The early retirement of the loan will result in Touchstone saving approximately $2.6 million in total interest expense compared to repayment in accordance with the agreement through to maturity.
Touchstone Exploration Inc. Appoints Todd Brown as Chief Operating Officer
May 20 14
Touchstone Exploration Inc. announced that Mr. Todd Brown, P.Eng., has been appointed to the position of Chief Operating Officer. Mr. Brown will be focused on increasing the Company's operational capabilities and executing the 2014 operations schedule.