Touchstone Exploration Inc (LON:TXP) has provided an operational update.
Highlights
· The Cascadura natural gas facility expansion and construction of the flowline from the Cascadura C surface location to the facility are progressing as scheduled, and we continue to target initial production from our Cascadura-2ST1 and Cascadura-3ST1 wells prior to the end of September 2024.
· Achieved average net sales volumes of 5,432 boe/d in the second quarter of 2024.
· Our current average net field estimated production is approximately 5,711 boe/d.
– Following production optimization efforts at Cascadura, the Cascadura-1ST1 and Cascadura Deep-1 wells are currently producing at a combined net field estimated rate of approximately 4,082 boe/d.
– The two CO-1 development wells drilled in 2024 commenced production on May 27, 2024, with current aggregate net field estimated production of approximately 212 bbls/d.
Cascadura
As part of our ongoing production optimization efforts at Cascadura, we performed a recompletion on the Cascadura Deep-1 well by adding perforations above the previously completed pay intervals. The well was shut in on June 24, 2024 and resumed production on July 4, 2024. Prior to the recompletion, the Cascadura wells produced an aggregate net field estimated rate of 3,463 boe/d, and current combined net field estimated production is approximately 4,082 boe/d.
We continue to make steady progress on the project connecting the Cascadura C surface location to our Cascadura natural gas facility. Key milestones include the completion of road and right-of-way construction and the installation of watercourse culvert crossings. The bridge over the Poole River is approximately fifty percent complete, with completion anticipated by the end of August. Additionally, the flowline construction is advancing on schedule, with approximately sixty-two percent of the pipeline welded and fifty-eight percent trenched along the right of way.
Simultaneously, the Cascadura facility expansion is underway. An additional natural gas separator has arrived at the facility, and the wellhead tie-in piping and valves are being delivered to a third-party for fabrication prior to installation.
We continue to target initial production from the Cascadura-2ST1 and Cascadura-3ST1 wells prior to the end of September 2024.
CO-1 Production
The two development wells on our CO-1 block commenced production on May 27, 2024. Since first production, the two wells have produced an aggregate net field estimated average of 167 bbls/d. In mid-July 2024, Touchstone Exploration performed optimization work on the wells, and they are currently producing at a combined net field estimated average rate of approximately 212 bbls/d.
Production Volumes
In the second quarter of 2024, we attained average net sales volumes of 5,432 boe/d, comprising:
· average natural gas net sales volumes of 25 MMcf/d (4,173 boe/d) at an average realized price of $2.48 per Mcf, with Cascadura Deep-1 shut in for seven days during the period; and
· average net daily crude oil and natural gas liquid sales volumes of 1,259 bbls/d, with an average realized price of $73.64 per barrel.
Touchstone Exploration’s current average net field estimated production is approximately 5,711 boe/d, comprising:
· average natural gas volumes of 26.6 MMcf/d (4,426 boe/d); and
· average crude oil and natural gas liquids volumes of 1,285 bbls/d.
