Touchstone Exploration Inc. announced operational update. The company drilled a total of 11 of budgeted 14 development wells. As previously announced, two of the budgeted shallow locations at South Palo Seco property were deferred indefinitely due to external surface lease issues. The company voluntarily postponed drilling the remaining WD-8 well in late December due to the decline in crude oil prices. Despite the reduced development program, the company expects to reach near-term average production target of 2,000 bbls/d in January 2019. During the fourth quarter of 2018, the company successfully drilled two wells on the WD-8 block and one well on WD-4 property. The FR-1800 well was spud on November 1, 2018 and reached a total depth of 4,700 feet. Wireline logs indicated the presence of approximately 588 feet of net oil pay, 456 feet in the Forest formation and 132 feet in the Cruse formation. The well was completed on December 21, 2018. The FR-1801 well was spud on December 10, 2018 and reached a total depth of 4,564 feet on December 23, 2018. Wireline logs indicated the presence of approximately 306 feet of net oil pay, with 188 feet in the Forest formation and 118 feet in the Cruse formation. The well was completed on January 4, 2019. Both wells are currently flowing up casing at a combined average field estimated production rate of approximately 242 bbls/d (based on the previous seven days to January 13, 2019). The company anticipates that initial flush production rates will likely decrease, with the wells being placed on pump during the first quarter of 2019. PS-605 was spud on WD-4 block on December 4, 2018, reaching a total depth of 7,250 feet on December 27, 2018. Wireline logs indicated the presence of approximately 608 feet of net oil pay, with 461 feet in the Forest formation and 147 feet noted in the Cruse formation. Completion operations have commenced on PS-605 and are expected to be concluded by early February.