Touchstone estimates 381 billion cubic feet gas find in Ortoire's Cascadura field

CANADIAN energy exploration company Touchstone has announced the discovery of a best estimate reserve of 381 billion cubic feet (bcf) of natural gas in its onshore Cascadura Assessment Area in its Ortoire exploration block in Trinidad.

Touchstone is the 80 per cent working interest operator while Heritage Petroleum Co Ltd has 20 per cent working interest.

The Cascadura Reserves Report, compiled by independent third party GLJ Ltd, a Canadian petroleum consultancy firm, evaluated the acreage on a stand-alone basis and provided a reserves estimate of natural gas and natural gas liquids, as well as a before income tax estimate of net present values of future net revenues, as of June 30, 2020.

Touchstone's president and CEO Paul Baay, commenting on the discovery said, "We are delighted to report that the independent reserves report verifies the material size of the reserves yet to be produced in the Cascadura structure and provides the groundwork for a multi-year future onshore development programme in Trinidad.

"Through the excellent work of the Touchstone team in the drilling of our first two exploration wells, we have successfully proven up the hydrocarbon bearing turbidite model (sediment flow) in Ortoire. This model will be further evaluated by our next two exploration targets at Chinook and Cascadura deep, with drilling at Chinook on track to commence within the next few weeks.

"We could not have envisioned a better start from the first two wells of the Ortoire exploration program, and we look forward to updating the market and our Trinidad stakeholders as we progress with our Ortoire exploration and development activities in the coming months."

The Cascadura Reserves Report estimated between a high of 571.5 bcf of natural gas and a low of 241.2 bcf, with a best estimate of 398.5 bcf.

Proven, probable and possible reserves (3P) are 73 million barrels of oil equivalent (boe) of which 85 per cent is highly likely to be recoverable. Proven and probable reserves (2P) are 45 million barrels of oil equivalent (75 per cent best estimate recovery) and proven reserves (1P) of 23 million boe (65 per cent recoverable best estimate).

Net peak production is estimated to be 22,600 boe per day in the 3P forecast, 15,108 boe per day in the 2P forecast, and 10,266 boe per day in the 1P forecast.

Commenting on the find, former Energy Minister Kevin Ramnarine said Touchstone's Cascadura discovery makes it the largest discovery on land since the 2002 Carapal Ridge discovery (in South Trinidad) and with further drilling in Cascadura, it is likely that more natural gas will be discovered.

"In my opinion what is happening in Ortoire is historic but it can only have happened if the Ministry of Energy awarded acreage. The Ortoire block was awarded to Touchstone in October 2014. The fact that the Ministry of Energy has not awarded acreage for the last five years is therefore disappointing.

"Touchstone needs to be congratulated for taking these risks to discover these new reserves. It confirms an eastward extension of the Herrera sands in Penal/Barrackpore. I think there will be more natural gas discoveries in this area, which is close to Poole Poole Valley and Rio Claro."