Touchstone Exploration Inc.

Touchstone Exploration Inc.

April 12, 2012 09:15 ET

Touchstone Exploration Inc. Provides Second Quarter Operational Update and Secures Coil Tubing Unit

CALGARY, ALBERTA--(Marketwire - April 12, 2012) - Touchstone Exploration Inc. (TSX VENTURE:TAB) (the "Company") is pleased to report it has finished the drilling portion of the first five wells in its 2011-2012 planned drilling program. The program could see up to seventeen additional wells drilled prior to the end of 2012. The first five wells have encountered the following:

Location Hydrocarbon Pay Encountered - Gross Feet Total
Forest Upper
1710 280 0 114 70 464
1711 50 22 50 48 170
1712 282 74 49 268 673
1713 92 32 0 136 260
1715 78 74 24 64 240

The Company will evaluate the Lower Cruse formation in the first five wells and, if warranted, will move up hole in each of the well bores to recomplete the less depleted upper sands that have, in recent completions, provided high rates of production.

"The Company is very pleased with the significant oil zones that have been encountered and will now complete the required sand cleanout procedures to stabilize the production," said Ron Bryant, President and COO.

Two of the wells have stabilized and are currently producing at a combined rate of approximately 200 bbls/d. The remaining three wells are at various stages of completion and optimization and are anticipated to add an additional 205 bbls/d of production during the next thirty (30) days.

Second quarter sales volumes are anticipated to average 1,025 bbls/d as a result of a rainy season that extended into January 2012. This is compared to the previous quarter average of 925 bbls/d. Sales volumes for January 2012 and February 2012 were 975 bbls/d and 1,014 bbls/d respectively, with volumes of 1,025 bbls/d anticipated for March 2012 based on field estimates. Field estimates for the first ten days of production in April averaged 1,170 bbls/d with today's field estimates in excess of 1,250 bbls/d.

During the second quarter the Company also successfully recompleted fourteen wells. The drilling program is anticipated to recommence in May 2012 with up to seventeen wells drilled prior to the end of December 2012.

The Company has also purchased a used coil tubing unit that will be added to its equipment inventory. It is anticipated that it will significantly expedite the cleanout of both new and existing wells and will improve cycle times and production maximization. The unit is due to arrive in Trinidad within the next sixty days.

The companies in which Touchstone Exploration Inc. directly and indirectly owns investments or assets are separate entities. In this news release "Touchstone" is sometimes used for convenience where references are made to Touchstone Exploration Inc. and its subsidiaries in general.

Cautionary Note Regarding Forward-looking Statements: Information in this news release that involves Touchstone's expectations, plans, intentions or strategies regarding the future are forward-looking statements that are not facts and involve a number of risks and uncertainties. Touchstone generally uses words such as "outlook", "will", "could", "would", "might", "remains", "to be", "plans", "believes", "may", "expects", "intends", "anticipates", "estimate", "future", "plan", "positioned", "potential", "target", "project", "remain", "scheduled", "set to", "subject to", "upcoming", and similar expressions to help identify forward-looking statements. The forward-looking statements in this news release are based upon information available to Touchstone as of the date of this news release. Forward-looking statements believed to be true when made may ultimately prove to be incorrect. These statements are not guarantees of the future performance of Touchstone and are subject to risks, uncertainties and other factors, some of which are beyond its control and may cause actual results to differ materially from current expectations. These forward-looking statements are subject to numerous risks and uncertainties, including but not limited to, whether requisite shareholder approvals and/or stock exchange and other regulatory approvals will be obtained in a timely fashion or at all; whether the Transaction will close as contemplated or at all, the impact of general economic conditions in Canada and Trinidad & Tobago; industry conditions including changes in laws and regulations including adoption of new environmental laws and regulations, and changes in how they are interpreted and enforced in Canada and Trinidad & Tobago; competition; actual and threatened litigation, lack of availability of qualified personnel; the results of exploration and development drilling and related activities; the timing and amount of estimated future production; costs of production; obtaining required approvals of regulatory authorities in Canada and Trinidad & Tobago; risks associated with negotiating with foreign governments as well as country risk associated with conducting international activities; volatility in market prices for oil; fluctuations in foreign exchange or interest rates; environmental risks; changes in income tax laws or changes in tax laws and incentive programs relating to the oil industry; ability to access sufficient capital from internal and external sources; the risks that any estimate of potential net oil pay is not based upon an estimate prepared or audited by an independent reserves evaluator; that there is no certainty that any portion of the hydrocarbon resources will be discovered, or if discovered that it will be commercially viable to produce any portion thereof; and other factors, many of which are beyond the control of Touchstone. Readers are cautioned that the foregoing list of factors is not exhaustive. For further information regarding specific risks and uncertainties applicable to Touchstone please see Touchstone's disclosure documents which may be viewed through the Internet on the Canadian System for Electronic Document Analysis and Retrieval (SEDAR) at Touchstone does not undertake any obligation to publicly update forward-looking information except as required by applicable securities law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Touchstone Exploration Inc.
    Mr. Ron Bryant
    President & Chief Operating Officer
    (403) 992-8407

    Touchstone Exploration Inc.
    Mr. Paul Baay
    Chairman & Chief Executive Officer
    (403) 992-8407
    (403) 514-0383 (FAX)