Oil and gas exploration and production company Touchstone Exploration announced strong production from its newly drilled wells and further drilling projects on Wednesday.
The four wells that the company drilled in 2017 contributed an average of 280 barrels per day (bbls/d) to its production for January and February, with current output from the wells estimated at approximately 400bbls/d.
In January and February, Touchstone achieved crude oil sales of 1,521 and 1,552 barrels per day respectively, while current completed field estimated production is roughly 1,705bbls/d.
Paul Baay, president and chief executive of Touchstone Exploration, said: “Production results of the four wells drilled throughout 2017 have been very encouraging, and we expect the current levels to continue to increase throughout the year. We have a very repeatable platform from which to build out our existing drilling campaign as we move closer to our 2,000 bbls/d sustainable rate.
The first well of the 2018 drilling campaign, located on the Calgary-based company's WD-4 property, has been drilled and is currently pumping at a field estimated controlled rate of 56bbls/d and further wells are scheduled to be drilled in the immediate future, the company added.
James Shipka, chief operating officer at Touchstone Exploration, chipped-in: “The opportunity to secure a second drilling rig is significant news as it will allow us to accelerate our 2018 drilling program and subsequently should enable us to increase production earlier than previously anticipated. We are set to spud two more wells on the Forest Reserve WD-8 and Coora 2 blocks in the coming weeks, giving us further momentum as we continue our ambitious 2018 drilling campaign.”
The well on the Coora 2 block is scheduled to spud in the third week of March before the newly secured rig moves on to drill a second well from the same surface location targeting oil reserves in an offsetting fault block.
As of 0946 GMT, Touchstone Exploration's shares were down 0.78% at 12.16p.