Touchstone Exploration has commenced its 2011-2012 capital drilling program with the spudding of Replacement-FR 1710 on the WD-8 block in Trinidad. The drilling program will consist of approximately 23 wells being drilled, the first four of which will be vertical development wells principally targeting oil in the Cruse formation at depths up to 4000 ft. These first four wells are anticipated to be finished drilling operations by the end of January, 2012, and will be brought on production on an on-going basis as results and completion approvals are obtained. It is anticipated that all four wells drilled in this phase will be on production by the end of the first quarter of 2012. Pending approval, the second phase of the drilling program will be a pilot program of four horizontal wells being drilled on WD-8 block. These wells will target the Forest formation which has oil-bearing sands between 850 and 1200 feet. Successful completion and performance of this program will provide a significant number of additional horizontal well locations on a number of the blocks operated by Touchstone. The third phase of the 2011-2012 drilling program will be drilling 17 vertical wells targeting the Cruse and Forest formations with a near-term focus of drilling on the WD-8, Coora, Fyzabad, San Francique and Sunty blocks. Touchstone has now identified 111 drilling locations on the lands currently subject to operation or exploration rights held by Touchstone.

The acquisition of all of the issued and outstanding shares of Primera Oil & Gas Ltd., Primera Oilfield Management Services Ltd. and Primera East Brighton Ltd. on August the 19th 2011, Touchstone undertook an evaluation of the existing well bores on the nine producing blocks it operates and has identified 229 potential zones for recompletion operations. In the past three months Touchstone has performed eight recompletions with the focus being by-passed pay within wells located in its Coora blocks. Of the eight recompletions executed, five were completed within the Coora block, two within the Fyzabad block and one within the WD-8 block. Results to date from this initial recompletion program include six producing oil wells, one solution gas zone and one well presently shut-in for re-evaluation. Total production on November 27th from the six successful recompletions was 161 bbls/d. The two most significant recompletions were at QU-428 which averaged 90 bbls/d and CO-253 which averaged 20 bbls/d. Both of these wells have seen intermittent production due to unconsolidated sand requiring numerous clean outs of the well bores. This is typical as most of the recompletions have been characterized by high initial rates which carry sand into the wellbore. After an initial period of flush production, rates stabilize and sand influx abates, allowing for continuous operation. Results to date from this initial recompletion program have been favorable with stabilized flowing metrics well below the targeted capital efficiency of $5000/bopd. Touchstone plans to continue the recompletion program and is initially targeting three recompletions per month for the 2011-2012 program.

Tags: Touchstone Energy