Touchstone off to 'great start' after natural gas find

Canadian oil and gas drilling company Touchstone Exploration says it has made a great start to the year with the discovery of natural gas in the Cascadura-2 field.

In a media release on Thursday, Touchstone said the well was supposed to be drilled to a depth of 8,300 feet, but drilling was suspended at 7,132 feet “to preserve the substantial pay section observed in the well after high-pressure gas zones were encountered.”

Drilling samples indicated over 525 feet of sands in the targeted Herrera formation.

It said casing is being installed on the well for future production and it expects to test the well directly into the Cascadura natural gas facility in the third quarter of 2024.

In the release, Touchstone’s president and CEO Paul Baay said, "The encouraging Cascadura2 delineation well drilling results represent a great start to 2024.”

He added, “Cascadura2 has proved up the concept of highly productive sands extending significantly to the east of our initial Cascadura discovery.”

He said the well was proving to be economically viable, as it was drilled for under US$6 million, which he said “further enhances the economics of this prolific hydrocarbon fairway.”

Baay added, “With this new data point we can design a multi-year drilling program to fully develop the structure.

“This well has not defined the easternmost edge of the structure, which warrants further delineation through future drilling.”

Meanwhile, Touchstone reported an average net sales volume of 8,504 barrels of oil equivalent per day (boepd) for the fourth quarter of 2023, with the Cascadura field contributing average net sales volumes of 6,854 boepd.

Touchstone also recorded average net sales volumes of 3,981 boepd for 2023, consisting of 35 per cent crude oil and liquids and 65 per cent natural gas volumes.

Last September, Touchstone’s Cascadura solar-powered natural gas and liquids facility delivered its first gas production.

On September 6, 2023, the company began producing natural gas and associated liquids and announced it intended to increase gross aggregate natural gas production from its Cascadura-1ST1 and Cascadura Deep-1 wells.

The facility operates as a self-contained system. It captures all natural gas from the separators and liquids storage tanks and recycles it back into the system to increase sales volumes.

It sustains its own power requirements through on-site solar systems and natural gas generators and is entirely independent of the TT power grid.