Touchstone shares soar on 'significant' crude oil discovery

Touchstone Exploration has made a “significant” crude oil discovery with the Cascadura-1ST1 well on the Ortoire exploration block, onshore in the Republic of Trinidad and Tobago, it announced on Monday.

The AIM and TSX-traded firm said the Cascadura-1ST1 cased hole wireline logs indicated significant prospective oil pay totaling 1,037 feet, from 1,374 feet of gross sand.

It said 80 net feet of oil pay was encountered in the regional Lower Cruse sands, at measured depths between 1,030 and 2,134 feet.

A total of 180 net feet of oil pay was encountered in an Upper Herrera Gr7c thrust sheet, at measured depths between 4,198 and 4,994 feet, with those sands not previously encountered in any offset wells in the area, according to the company.

It added that 600 net feet of oil pay was encountered in a Middle Herrera Gr7c thrust sheet at measured depths between 5,516 and 6,162 feet, with those sands also not reported in any offset wells previously drilled in the area.

Finally, 177 net feet of oil pay was encountered in a Lower Herrera Gr7a thrust sheet, at measured depths between 6,162 and 6,350 feet, which were one of the firm’s targeted sands as identified in the offsetting well.

Touchstone said it was expecting to complete and test the Cascadura-1ST1 well in the first quarter of 2020.

Cascadura is the second prospect of four on the Ortoire block, with initial test results at COHO-1 previously released by the company on 18 November.

“The well results far exceed any pre-drill expectations,” said president and chief executive officer Paul Baay.

“This well is not only a significant discovery and milestone for Touchstone, but we believe it also establishes a new development stage for onshore drilling in Trinidad.

“In the new year, we expect to test each zone independently in order to better understand the economic potential of the prospective oil sands, and if the findings are positive, it will set up an expansive development drilling program in the area.”

At 1445 GMT, shares in Touchstone Exploration were up 52.73% in London at 21p.