Highlights
- The initial test interval was completed on
January 17, 2020 to evaluate the lowermost 162 foot pay interval between 6,056 and 6,218 feet. - The well was opened to test on
January 18, 2020 on a 4/64" choke for a period of 97 minutes with load fluid, hydrocarbon emulsion and gas recovered at surface prior to shut-in. - Shut-in tubing head pressure observed at surface built to 4,200 psi, which we deemed to be higher than current equipment could safely evaluate.
- The well is currently shut-in while we mobilize a three-phase separator and testing package designed to safely evaluate the high pressures and gas volumes observed upon initial completion.
"This is the best possible outcome for the initial test results from the Cascadura well, as natural gas and liquids have superior economic value under the
Cascadura-1ST1 Well Testing
As previously announced, the Cascadura-1 exploration well (Touchstone 80% working interest operator,
The initial production test of the Cascadura-1ST1 well has been designed to evaluate the lower 777 feet of prospective pay found in the Herrera Gr7c formation (5,516 – 6,162 feet) and the Herrera Gr7a formation (6,162 – 6,350 feet). The test is being conducted in two stages, with the first test evaluating the interval between 6,056 and 6,218 feet which is the lowermost pay interval isolated behind a 7" liner.
This first test commenced on
The well is currently shut-in while a three-phase test separator is mobilized and installed which will allow the well to be tested safely at the high pressure and gas rates observed to date. The Company expects testing to resume over the next ten days and will provide further updates when available.
Under the
Coho-1
We are currently surveying the pipeline route for the previously announced Coho-1 natural gas discovery while working with local engineering firms on the design of the surface equipment required to bring the well on production. In parallel, we are drafting the required permitting documentation to construct the pipeline with the aim of bringing the well on production by
Further Ortoire Exploration
The Company has commenced civil work on the access roads to the next two planned exploration prospects on the Ortoire exploration property.
Advisories
Forward-Looking Statements
Certain information provided in this news release may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking information in this news release may include, but is not limited to, statements with respect to the quality and quantity of prospective hydrocarbon accumulations; initial Cascadura-1ST1 well test results, the Company's anticipated timing and completion of the well production test, and the Company's anticipated development and timing of the Coho-1 well including potential tie-in and production therefrom. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. Certain of these risks are set out in more detail in the Company's 2018 Annual Information Form dated
Oil and Gas Matters
References in this news release to production test rates and initial flow rates are useful in confirming the presence of hydrocarbons; however, such rates are not determinative of the rates at which such wells will commence production and decline thereafter and are not indicative of long-term performance or of ultimate recovery. Additionally, such rates may also include recovered "load oil" fluids used in well completion stimulation. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for the Company. A pressure transient analysis or well-test interpretation has not been carried out in respect of the well. Accordingly, the Company cautions that the test results should be considered preliminary.
SOURCE
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