Touchstone Exploration Inc (AIM:TXP, TSX:TXP, OTC:PBEGF) told investors it has mobilised a rig for a two-well drilling campaign at its WD-4 block in Trinidad, with the first development well expected to spud in mid-September and the contractor covering drilling costs for the second.
The campaign targets additional oil production and comes as Touchstone continues to lift gas output from its Cascadura field. Gross Cascadura gas production rose from around 6.6 MMcf/d in June to 9.7 MMcf/d in July and 12.6 MMcf/d in August as availability of the field's booster compressor improved from 57% to 73%.
A solvent squeeze treatment at Cascadura-2ST1 also delivered what the company called "promising incremental production gains", supporting potential use of the technique on further wells. Workovers at Cascadura-3ST1 and Cascadura-5 are scheduled for October, while Touchstone is targeting compressor availability of 97%.
Elsewhere, a cleanout and acid stimulation at the CR-3 well generated only a limited production response and failed to resolve drilling-related reservoir damage. Touchstone is instead preparing to complete an uphole Karamat interval containing around 82 feet of net pay, with that work also targeted for October.
Net sales production averaged 4,402 barrels of oil equivalent per day in July, while field-estimated net output averaged 4,392 boe/d in August. Central block gas sold during July achieved an estimated $10.28 per Mcf net of fees under the Atlantic LNG Train 2/3 contract.
