CALGARY, ALBERTA–(Marketwired – Nov. 5, 2013) – Touchstone Exploration Inc. (“Touchstone” or the “Company”) (TSX VENTURE:TAB) is pleased to announce its average daily production for the fiscal year ending September 30, 2013 was 1,727 barrels per day, which represents a 49% increase from the 1,159 barrels per day achieved in the 2012 fiscal year. Field-estimated production for the month of October was 1,750 barrels per day, with seven additional wells presently offline awaiting work-over or recompletion programs. All of these wells are expected to add to production volumes over the next sixty days.
During the fourth quarter the Company successfully drilled CO-362 and CO-365 on its Coora block. Both of these wells have subsequently been completed and are presently producing at a combined average of approximately 175 barrels per day. These initial results demonstrate the potential of the Coora block to add low risk, economically attractive future drilling locations, of which nineteen have currently been identified. Furthermore, FR-1736 located on the WD-8 property was being drilled during year-end and has since been cased for completion. This well is anticipated to be completed and placed on production in late November.
During the last two months the Company focused on optimizing the utilization of its coil tubing operations with the purchase of additional equipment, including two new compressors. This new equipment is expected to be operational by calendar year-end and will expand the Company’s operational capability, as well as provide equipment redundancy and timely parts availability. The Company has also secured the services of an additional work-over rig and is presently working to source additional service equipment to further reduce the downtime of its existing fleet of service rigs.
The Company is pleased to announce the successful renewal of farm-in agreements with the Trinidad state oil company for the South Palo Seco and New Dome properties. These agreements have an effective term of eight years and confirm the Company’s ability to produce from these fields, as well as further increase the Company’s overall inventory of drilling locations.
Finally, as announced in a previous press release, the Trinidad and Tobago government has revised its fiscal regime under its approved 2014 budget. Effective January 1, 2014, the new budget includes accelerated capital allowance deductions which are expected to have a significant impact on the Company’s returns and cash flows from its future capital programs. The Company has now shut down its drilling program to focus on the standing wells needing work-overs and recompletions. The Company expects to commence its 2014 drilling program at the beginning of the calendar year.
Touchstone Exploration Inc. is engaged in the business of acquiring interests in petroleum and natural gas rights, and the exploration, development, production and sale of petroleum and natural gas internationally. The Company is currently active in onshore properties located in the Republic of Trinidad and Tobago. The Company’s common shares are traded on the TSX Venture Exchange under the symbol “TAB”. Please see the latest corporate presentation on the Company’s website at www.touchstoneexploration.com.
READER ADVISORY – Forward Looking Statements
The information herein contains forward-looking statements and assumptions. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”, continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe” and other similar expressions. Statements relating to “reserves” and “resources” are deemed to be forward looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves and resources described exist in the quantities predicted or estimated, and can be profitably produced in the future. Such statements represent the Company’s internal projections, estimates or beliefs concerning future growth, results of operations based on information currently available to the Company based on assumptions that are subject to change and are beyond the Company’s control, such as: production rates and production decline rates, the magnitude of and ability to recover oil and gas reserves, plans for and results of drilling activity, well abandonment costs and salvage value, the ability to secure necessary personnel, equipment and services, environmental matters, future commodity prices, changes to prevailing regulatory, royalty, tax and environmental laws and regulations, the impact of competition, future capital and other expenditures (including the amount, nature and sources of funding thereof), future financing sources, business prospects and opportunities, among other things. By their nature, forward-looking statements are subject to numerous known and unknown risks and uncertainties that could significantly affect anticipated results in the future and accordingly, actual results may differ materially from those predicted. Although the Company’s management believes that the expectations and assumptions reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievement since such expectations and assumptions are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies.
The Company is exposed to numerous operational, technical, financial and regulatory risks and uncertainties, many of which are beyond its control and may significantly affect anticipated future results. Operations may be unsuccessful or delayed as a result of competition for services, supplies and equipment, mechanical and technical difficulties, ability to attract and retain qualified employees on a cost-effective basis, commodity and marketing risk and seasonality. The Company is subject to significant drilling risks and uncertainties including the ability to find oil reserves on an economic basis and the potential for technical problems that could lead to well blowouts and environmental damage. The Company is exposed to risks relating to the inability to obtain timely regulatory approvals, surface access, and access to third party gathering and processing facilities, transportation and other third party related operation risks. The Company is exposed to risks related to recent acquisitions including unforeseen difficulties in integrating acquired companies, properties, personnel and infrastructure into the Company’s operations; the outcome of litigation brought against the Company or acquired companies or other disputes involving the Company or any acquired companies; or the failure generally to realize the anticipated benefits of such acquisitions. The Company is subject to industry conditions including changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced. There are uncertainties in estimating the Company’s reserve base due to the complexities in estimated future production, costs and timing of expenses and future capital. The financial risks the Company is exposed to include, but are not limited to, the impact of general economic conditions in Canada and the Republic of Trinidad and Tobago, the ability to access sufficient capital from internal and external sources, changes in income tax laws or changes in tax laws, royalties and incentive programs relating to the oil and gas industry, fluctuations in natural gas and crude oil prices, interest rates, the U.S./Canadian dollar exchange rate and the U.S/Trinidad and Tobago dollar exchange rate. The Company is subject to regulatory legislation, the compliance with which may require significant expenditures and non-compliance with which may result in fines, penalties or production restrictions or the termination of licence, lease operating or farm-in rights related to the Company’s oil and gas interests in Trinidad and Tobago.
Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and as such, undue reliance should not be placed on forward-looking statements. Readers are also cautioned that the foregoing list of factors and assumptions is not exhaustive. The Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. Additional information on these and other factors that could affect the Company’s operations and financial results are included elsewhere herein and in reports, documents and disclosures on file with Canadian securities regulatory authorities and may be accessed on SEDAR.
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.
Mr. Ron Bryant
President & Chief Operating Officer
Touchstone Exploration Inc.
Mr. Paul R. Baay
Chairman & Chief Executive Officer
Macam Investor Relations
President & Chief Executive Officer