Touchstone Exploration sees new oil discovery in Royston-1 well

Touchstone Exploration Inc said it is excited to announce a further large oil discovery at the Royston-1 well, onshore Trinidad, following the continuation of production testing.

The company, in a statement, detailed the findings of a second test that tested a second interval in the Royston well – confirming a light oil reservoir.

Touchstone highlighted that its downhole assembly was designed for a ‘liquids rich’ natural gas test which was not ideal for the conditions encountered in the interval, which flowed at a rate of some 430 barrels of fluid per day including a high proportion of water (c.90%), and it noted that future configuration is expected to isolate and maximise crude oil production.

"We are excited to announce this further, large oil discovery at Royston-1,” said chief executive Paul Baay. “The results are the reason why we find the geology in Trinidad's hydrocarbon charged basin so exciting.

“This oil discovery will allow us greater flexibility for the pace of development of the project, as we have the opportunity to design production facilities while we are selling crude oil testing volumes.”

Baay added: “We now have an exciting development project along with the upside from the remaining exploration in the subthrust sheet and the Cretaceous.

“Once we have completed the final production test at Royston-1, we intend to work to formulate a long term development plan, which is anticipated to include a number of wells and associated facilities."

Touchstone has suspended the second test interval and is moving up to conduct a third production in the uppermost interval. This test will use a reconfigured set-up in anticipation of a liquids flow.

The company noted that it envisages two additional wells will be drilled from the existing Royston surface location, to target the Royston Deep prospect and the Kraken prospect.

James Shipka, Touchstone chief operating officer, added: "Trinidad continues to provide us with rich hydrocarbon opportunities as is evident from the latest test results at Royston.

“The unique opportunity at Royston is that we can design a production profile from day one that includes low emissions from reinjection of gas and/or produced water to maintain reservoir pressure and enhance recovery factors.

“We really do have two distinctly different oil plays to exploit in both the intermediate and overthrust sheets of the Herrera, and based on analogous pool data, we have a  template to optimize production and recoveries.”

Paul Baay told encouraged shareholders to view Touchstone’s latest corporate presentation so they can “fully understand the areal extent of the Royston structure and its potential”.

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