Page 16 - LatAmOil Week 11 2022

LatAmOil NEWS IN BRIEF LatAmOil

PROJECTS & COMPANIES

Touchstone Exploration

receives approval of Ortoire
licence extension

Touchstone Exploration has announced that the
Government of Trinidad and Tobago (GoTT)
has approved a five-year extension of the explo-
ration and production licence for the Ortoire
block. Touchstone has an 80% operating work-
ing interest in the Licence, with Heritage Petro-
leum Co. holding the remaining 20% working
interest.
The Company was informed by the Trini-
The Company plans to drill a step-out well (SM well in the San Martin structure; $0.4mn to com- dad and Tobago Ministry of Energy and Energy
a-1004) on the western flank of the San Martin plete the construction of an oil field pipeline Industries (MEEI) that the GoTT approved a
structure in Q1-2022 to test for oil in a fault com- to a new delivery point at the Cullen terminal five-year extension of the exploration period
partment immediately west of the SM x-1002 operated by Total Austral, located in the north of the Ortoire Licence to July 31, 2026. As part
producing well. During February 2022, the of TDF and $1.2mn in other improvements to of the extension, Touchstone is required to drill
Company commenced equipment mobilisation facilities) and $2.4mn for well workovers, facili- three exploration wells to minimum depths of
to the well location. ties improvements and optimisation in CH. 6,000 true vertical feet prior to the end of the
Las Violetas Concession: During 2021, nat- The Company’s capital spending on explora- amended Licence term. The three exploration
ural gas production from the Las Violetas con- tion and evaluation assets in 2022 is budgeted wells are in addition to the five previous wells
cession averaged 14,570 (net 5,060) mcf per day at $2.4mn to drill and complete the CPE.MdN. drilled to date on the property. Similar to the pre-
and oil production averaged 348 (net 121) bar- VS.xp-3(d) exploration well on the CLL explo- vious minimum work programme, Touchstone
rels of oil per day. Oil produced in association ration permit. will be responsible for 100% of the drilling, com-
with natural gas production is trucked to the San Crown Point Energy, March 14 2022 pletion and testing costs for the three additional
Martin field, blended with San Martin oil and exploration wells. Each party to the Licence
transported to Cruz del Sur for storage and sale. President reports positive remains responsible for its working interest costs
The Company plans to drill a horizontal associated with the development of commercial
development well in the Las Violetas oil pool production sales fields, including expenditures relating to facili-
in Q1-2022, located in the northeast corner of ties construction and development well drilling.
the Concession and targeting the Springhill President is pleased to report the following pos- The Licence extension will permit Touch-
Formation. itive production sales news. stone to continue exploration operations on
Chañares Herrados (CH) Concession: On President has received approval from the regula- acreage that have not already been deemed com-
March 13, 2021, the Crown Point-Aconcagua tory authorities in Argentina to export approx- mercial, and no acreage was surrendered pursu-
joint venture took over operatorship of the CH imately 19,000 barrels of oil being part of its ant to the extension. The Licence amendment
Concession. By the end of 2021, workovers on 18 Argentine production this month at or around agreement is now required to be approved by
shut-in oil wells were carried out and the wells international prices; the Office of the Attorney General and Ministry
placed back on production. In addition, eight of Long-awaited signals have been communi- of Legal Affairs prior to execution by all parties.
the shut-in wells underwent stimulations and cated to the market from the Argentine national Paul Baay, President and CEO, commented:
extractive system enhancements resulting in oil production company YPF as well as from the “The formal approval of Ortoire licence exten-
production increases. Average oil production for Government that after many months domestic sion provides us with a unique opportunity to
the 293-day period from March 13 to Decem- oil prices in Argentina will start to increase from design and implement an expanded exploration
ber 31, 2021 was 1,000 (net 500) barrels per day April with already an announcement on Mon- programme to fully evaluate our internally iden-
(bpd) of oil. day that prices at the pump will increase by 10%. tified prospects on the acreage. The extension
Cerro de Los Leones (CLL) Exploration Per- President expects more of a gradual increase also allows us the ability to have a multi-faceted
mit: During January 2022, the company drilled reducing the material gap to world pricing. As future drilling programme, including develop-
CPE.MdN.VS.xp-3(d), which is currently await- such the progressive step by step signs are wel- ment drilling at Cascadura, Royston and Coho
ing completion scheduled for March 2022. The comed and will have a positive effect. as well as further exploration prospects on the
Company has made an application to the Prov- President looks forward to the furture bene- licence. Touchstone has proven that Ortoire
ince for a 12-month extension of the Period ficial impact of these developments. is a resource-rich property, and we are excited
3 term to February 2023 to finish completion Peter Levine, Chairman, commented: “In to explore further prospects to potentially feed
operations and evaluate test results. Argentina, positive steps to raise in effect the net into our current infrastructure currently in con-
Outlook: The Company’s capital spending on proceeds of our crude is welcome as is further struction. We would like to thank the MEEI for
property and equipment assets in 2022 is budg- export of our product. It is also satisfying to have its continued support, and we welcome a further
eted at $7.4mn comprised of $5.0mn in TDF Louisiana returning to make good bottom line opportunity to partner and grow onshore Trini-
($1.8mn to drill one horizontal well in the Las contributions to Group.” dad oil and natural gas production.”
Violetas Concession; $1.6mn to drill one vertical President Energy, March 15 2022 Touchstone Exploration, March 11 2022

P16 www. NEWSBASE .com Week 11 17•March•2022