Page 16 - LatAmOil Week 10 2021

LatAmOil NEWS IN BRIEF LatAmOil

Brian Hottman, Fugro’s Director for Caribbean drilling rigs in Trinidad capable of drilling to
and Pacific South America, said: “The Suri- depths of 10,000 feet (3,,048 metres) or more.
name-Guyana Basin is shaping up to be a world- Well Testing: Touchstone has yet to test the
class petroleum system, and PSEPBV is poised to targeted gas bearing zones in the Chinook-1
be a major player in this region, as demonstrated and Cascadura Deep-1 exploration wells due to
by their successful results from the Sloanea-1 unavoidable delays associated with third-party
exploration well located in Block 52. We look equipment including the natural gas testing
forward to supporting their continued success unit. However, we are pleased to report that
in the region by defining high-potential areas all required equipment has now been cleared
within Block 48 and helping develop Suriname’s through the various levels of government organ-
vital resources in a safe and responsible manner.” isations in Trinidad and is expected to be on
Fugro, March 10 2021 reserves from the Company’s Chinook-1 and location within the next 10 days.
Cascadura Deep-1 wells drilled in the fourth Touchstone has tested two low resistivity
quarter of 2020. zones in the Chinook-1 well. The first test inter-
PERFORMANCE Paul Baay, President and CEO, commented: val was in the lower sub-thrust sheet, which was
“Our year-end 2020 reserves evaluation pro- a previously unknown thrust-sheet where we
Touchstone announces vides further independent confirmation of the identified 68 net feet (20.73 net metres) of poten-
significant opportunities that the Company tial pay based on wireline logging data. During
2020 year-end reserves and has in place from our Trinidad assets. Our 1P this test, the well recovered trace amounts of 41
reserves are now significantly higher than our degrees API sweet oil along with significant high
operational update 3P reserves at the same time last year, providing pressure and high temperature water, which was
greater operational and financial certainty for indicative of encountering a fracture at the base
Touchstone Exploration has announced a sum- investors, and exclude any potential reserves of the formation.
mary of its 2020 year-end reserves and provided from the recently drilled Chinook-1 well or Cas- With the high volume of water, the zone is
an operational update. cadura Deep-1 wells. We have a lot to be excited considered uneconomic; however, indications
2020 Year-end Reserves Report Highlights: about as we focus on converting our world class of light oil prove the concept of hydrocarbons
Increased 3P net reserves by 236% to 100,150mn reserves to production during 2021 as well as in the sub-thrust sheet. Based on 3D seismic
boe, increased 2P net reserves by 194% to expanding opportunities through additional data, future development locations are antici-
64,947mn boe and increased 1P net reserves by drilling at Ortoire.” pated to be positioned structurally up-dip by as
189% to 34,238mn boe from the prior year. In Operational Highlights: Tested two identi- much as 1,000 feet (304.8 metres) from the Chi-
comparison to 2019, 10% discounted net present fied pay zones in the Chinook-1 well, with both nook-1 well to evaluate the sub-thrust sheet in an
value of future net revenues (NPV10) on a before zones encountering potential upside in the form optimal structural position. The Company has
tax 3P basis increased by 90% to $1.0028bn of light sweet crude oil. One pay zone is currently permanently abandoned this lowermost zone
and after tax 3P NPV10 increased by 108% to being configured for an extended production and completed a second zone in the Herrera
$419.4mn. Achieved a before-tax 2P NPV10 test. Equipment has arrived in Trinidad to enable formation which encountered 35 degrees API
of $683.1mn, representing an increase of 72% testing of the main gas bearing zones in the Cas- sweet oil and is currently being configured for
from $397.9mn reported in 2019 and realised cadura Deep-1 well, where significant hydrocar- an extended oil production test. We anticipate
an annual after tax 2P NPV10 increase of 88% bon accumulations were reported in December conducting the first natural gas test at the Casca-
to $289.2mn. Realised before tax 1P NPV10 of based on drilling and wireline logging data. dura Deep-1 well while the Chinook-1 well is on
$362.9mn, representing an increase of $160.7mn Testing of the potential gas bearing sands in the the extended oil production test.
or 79% from the prior year and increased after Chinook-1 well will commence following the Coho-1 Tie-in: On January 22, 2021, the
tax 1P NPV10 by 95% from year-end 2019 to extended crude oil test. Company received approval to proceed with the
$163.0mn. Realised 1P F&D costs of $1.26 per We continue to target the second quarter of construction of the Coho-1 tie-in project. Subse-
boe, resulting in a recycle ratio 11.3 times using 2021 for initial Ortoire gas commercialisation, quent to the required initial notification period,
our unaudited annual estimated 2020 operat- with final regulatory approvals for the tie-in construction operations have commenced.
ing netback of $14.29 per boe. Touchstone’s low of our Coho-1 well received and construction Touchtone is targeting initial gas production
F&D costs are primarily attributed to our mean- underway. Working with the National Gas Com- from Coho-1 in the second quarter of 2021.
ingful 2020 reserves growth from our Casca- pany of Trinidad and Tobago to commence reg- In conjunction with the project, we have also
dura-1ST1 well discovery. Recognised 2P F&D ulatory applications to tie-in Cascadura and any been working with Natural Gas Co. (NGC) of
costs of $0.71 per boe, resulting in a 2P recycle potential Chinook production volumes, with the Trinidad and Tobago to survey and commence
ratio of 20.3 times, demonstrating Touchstone’s objective of achieving initial production prior to regulatory applications to tie-in Cascadura and
capital efficient operations in the Ortoire block. the end of 2021. any potential Chinook production volumes,
FDC associated with only a portion of our inter- The primary access road to the Royston-1 with a goal to achieve initial production prior to
nally identified drilling location inventory and well location has been cleared, and we have the end of 2021. The Company is concurrently
low-risk recompletion projects totaled $55.9mn commenced road resurfacing and lease build- applying for two additional surface locations at
for 1P reserves and $83.9mn for both 2P and 3P ing operations. Initiated line clearing for the both Cascadura and Chinook which will allow
reserves. The Cascadura assessment area was 21-kilometre 2D seismic programme in the for up to 16 development locations.
assigned gross working interest 1P reserves of Royston area. Expected to enter into a mini- Royston Drilling Preparations: Touchstone
23,622mn boe and gross working interest 2P mum three-year drilling services contract from is pleased to report that we have cleared the pri-
reserves of 45,030mn boe with an estimated a Canadian-based private company to supply an mary access road to the Royston-1 drilling loca-
before tax 2P NPV10 of $411.8mn. ultra-heavy telescopic drilling rig to Trinidad in tion and are currently surfacing the road and
The Reserves Report excluded any potential late 2021, which will enable us access to three performing lease preparations.

P16 www. NEWSBASE .com Week 10 11•March•2021