The Trinidad-focused Touchstone Exploration has commenced drilling the Cascadura-3 and the CO-374 development wells, it said in a March 4 update.
Cascadura-3 was spud on March 1 from the Cascadura C surface location on the Ortoire Block in which Touchstone has an 80% working interest.
The well is targeting gas-charged sands in the Herrera formation northeast of the recently drilled Cascadura-2 well and is expected to be drilled to an anticipated total depth of 7,000 feet using Star Valley Rig #205.
CO-374 was spud on February 28 on the CO-1 block, in which Toushtone has a 100% working interest.
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The well is targeting crude oil-charged sands in the Cruse and Forest formations and is expected to be drilled to a total depth of 6,600 feet using PCSL Rig #8.
Touchstone said the Cascadura-2 well has been successfully cased after it encountered wellbore instability issues due to high gas pressures which resulted in the need to sidetrack a portion of the well.
“Operations are proceeding on the road and pipeline right-of-way which will tie-in the Cascadura development wells to our Cascadura natural gas facility. This project includes the preparation of the Cascadura B surface location, which has been approved for the drilling of up to four additional development wells,” Touchstone stated.
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Meanwhile, Touchstone said its wholly-owned Trinidadian subsidiary, Touchstone Exploration (Trinidad) Ltd., has entered into a binding term sheet with its existing Trinidad-based lender providing for an increase in borrowing capacity of $13 million (an “Amended Bank Loan”). The principle changes in the agreement are:
- a new US$10 million five-year non-revolving term loan facility, with no principal repayment in the first year and sixteen equal and consecutive quarterly payments thereafter; and
- an increase in our current revolving loan facility borrowing capacity from U$7 million to US$10 million, which will mature two years from the execution date and may be renewed at the option of the parties thereafter.
Touchstone said it plans to use the new financial facility on its 2024 capital program.
