Touchstone Exploration Announces an Operational Update

CALGARY, AB / ACCESSWIRE / April 10, 2024 / Touchstone Exploration Inc. ("Touchstone", "we", "our" or the "Company") (TSX:TXP)(LSE:TXP) provides an operational update, highlighted by drilling results at our Cascadura-3ST1 delineation well and our CO-374 development well.

Highlights

• The Cascadura-3ST1 delineation well was drilled to a total depth of 8,252 feet, and openhole logs and drilling data indicated a total sand thickness of approximately 900 feet in the targeted Herrera Formation.
• The Cascadura-3ST1 well has been cased and production testing is scheduled to commence in the third quarter of 2024 directly into the Cascadura natural gas facility.
• The construction for the flowline from the Cascadura C surface location to the Cascadura natural gas processing facility is progressing, with anticipated completion in the third quarter of 2024.
• The hazard and operability analysis ("HAZOP") and engineering designs for the expansion of the Cascadura facility have been approved, and procurement for the expansion has commenced.
• The CO-374 development well on our CO-1 block was drilled to a total depth of 5,684 feet, with openhole logs and drilling data indicating a sand thickness of approximately 400 feet in the Forest Formation and approximately 300 feet in the Cruse Formation.
• The CO-374 well has been cased for crude oil production and will be completed once the CO-375 development well has been drilled and the rig is moved from the location.
• The CO-375 development well was spud on April 3, 2024 and is targeting to be drilled to a total depth of 6,500 feet.
• Achieved average net sales volumes of 7,015 boe/d in the first quarter of 2024.

Paul Baay, President and Chief Executive Officer, commented:

"We are pleased with the successful results from the two delineation wells at Cascadura, with both wells demonstrating the quality and scale of the structure. In addition, the Cascadura-3ST1 well is the first to cross the C-fault to the east side of the structure, an area where reserves have not been previously assigned. The CO-374 development well is also noteworthy, as it has the highest net pay we have observed to date on our crude oil legacy blocks."

Cascadura-3ST1 Drilling Results

The Cascadura-3ST1 delineation well was spud on March 4, 2024 from our Cascadura C surface location and reached a total depth of 8,252 feet on March 29, 2024. While drilling the well, a high-pressure gas kick was encountered at a depth of approximately 7,500 feet which resulted in wellbore instability issues. As a result, a portion of the wellbore was redrilled via a sidetrack.