Encouraging results at Cascadura well test: Presence of high volumes of natural gas
Touchstone Exploration has announced initial results from testing done on its Cascadura-1ST1 Well on the Ortoire exploration block, onshore Trinidad. The company has indicated that significant pressures and natural gas volumes were encountered.
Paul Baay, President and CEO of Touchstone said, "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 Trinidad fiscal regime. Based on the information acquired while drilling, the thick sand we encountered in the well appeared to contain oil with some associated gas. It is now evident that it is likely a liquids rich gas structure. Given this is only the lowermost 162 feet of pay in the well, these initial results are extremely encouraging."
It was previously indicated that there are approximately 1,037 feet of prospective hydrocarbon pay in this well. 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 and the Herrera Gr7a formation. These tests will be done in two stages.
Under the Trinidad petroleum tax regime, all petroleum liquids are subject to the supplemental petroleum tax (SPT) which, at today's oil prices, equates to 18 percent of net petroleum revenues.
Petroleum revenues derived from the sale of natural gas are not subject to the SPT.
According to the company, given it was presumed the initial test interval was predominantly oil bearing, the presence of high volumes of natural gas in preliminary testing is encouraging.
Paul Baay, President and CEO of Touchstone Exploration will be speaking at the T&T Energy Conference on February 3rd 2020. To learn more about the conference - Click Here