TOUCHSTONE Exploration is excited to ramp up its production now that the Environmental Management Authority (EMA) has confirmed the environmental impact assessment is completed.
The Alberta-based company is also preparing to launch T&T’s first onshore natural gas project in 20 years.
Last week, the EMA confirmed that no further information was required regarding the Cascadura Environmental Impact Assessment (EIA).
The Cascadura EIA supports the company’s application for a Certificate of Environmental Clearance (CEC) to conduct development operations within the Cascadura area of the Ortoire block.
The EMA confirmed the following designated activities of the CEC have been deemed applicable to the proposed Cascadura project: exploration for crude oil and natural gas; establishment of a facility for primary or secondary production of crude oil, condensate or associated gas; establishment of a facility for natural gas or condensate production; establishment of infrastructure for pipeline systems; and establishment of infrastructure for storage of petroleum or liquid petroleum gas or their derivatives.
These represent all of the necessary activities for commercial production at Cascadura pursuant to Touchstone’s application.
Touchstone submitted the remaining EIA documentation on August 3, 2022, and the EMA responded on August 5, 2022 stating that the submitted information was reviewed and was deemed adequate to determine the outcome of the company’s CEC application.
Pursuant to statutory CEC rules, the EMA confirmed that a final CEC determination will be made by September 15, 2022.
President and CEO of Touchstone Paul Baay during a recent discussion with “DirectorsTalk Interviews”—a UK company—explained what this signals for the Cascadura well, effects on the production timeline and the process of pre-commissioning and commissioning starting at Touchstone Exploration’s Coho facility and the view of T&T Government on the imminent production from the Ortoire block.
“This is really significant for us. It is something we have been waiting for a long time. It’s basically the environmental permit for us to proceed with the project. It’s been something we have been working for about a year.
“It’s a really thorough project and what it will do for us is outline the next five years of operations. Although it has been sort of painful to get us to this point, it allows us to drill wells, it allows us to build our gas facility, it allows us to build roads and pipelines so now we can really lay out a really firm and clear plan for the next five years,” Baay outlined, reiterating the process has been “very thorough and time consuming.”
On whether there are expected to be effects on the production timeline of Cascadura because of the delays, Baay remained hopeful Touchstone will achieve production between now and the end of the year, saying this will depend also on how quickly the company can move and also on the weather.
“It’s definitely been delayed and we have been pushing on two fronts. We have been continuing to fabricate various things that we could without actually going on the site. Everything is going to push forward as fast as we can. The next couple of weeks we will firm that timeline up. It may push things by a couple of months but it’s not going to push us into 2023,” Baay said.
Touchstone also recently announced pre-commissioning and commissioning will be commencing at Coho.
“This will be the first onshore gas in 20 years. It’s a big deal for us and also the country,” Baay added.
What’s next for Coho?
According to Baay the facility is built for about 20 million cubic feet a day, noting the initial well should be around eight to 10 million cubic feet a day.
“So we will wind that out for a little while and we do have an approval to drill a second well there and we will look to get back in there at some point,” Baay said.
He noted the company “really wants” to ramp up production at Cascudura, adding the new permit will enable to drill up to eight more wells.
“I don’t think we will need that many to fill the facility. We will drill enough to fill that up and end up about 200 million a day in 2023 and then we will look at Coho after that,” Baay said.
Baay was also asked how this government viewed the announced production from the Ortoire block.
Saying there has been a lot of support, Baay however, added, “I think there has been a lot of concern. This EIA has taken much longer than certainly we anticipated. I think a lot of people sort of questioned the authenticity of the government but in fairness this is the first new gas brought on in 20 years and we are talking about a facility that’s about 200 million cubic feet a day.
“We had to go through the process to make sure all the public consultation was done, the design was correct. But they (government) are really excited to get this on and we are going to do as quick as we can,” Baay explained.
Additionally, he said this is an opportunity for job creation as the expertise of local contractors will be used.
Energy Minister Stuart Young met with Baay on Wednesday at the Ministry’s Head Office where discussions focused on Touchstone’s work programme and specifically the Coho and Cascadura wells.
The parties also spoke about potential future exploration and production.
Coho and Cascadura wells are conventional gas developments located onshore T&T, both of which lie in block Ortoire.
A statement from the ministry said Baay estimated both blocks will flow both liquids and gas for many years.
Touchstone Exploration is an oil and natural gas exploration and production company active in T&T.
It is currently one of the largest independent onshore oil producers in Trinidad, with assets in several large, high-quality reservoirs that have significant internally estimated total petroleum initially-in-place and an extensive inventory of oil and natural gas development and exploration opportunities.
Touchstone Exploration has achieved quarterly average crude oil production volumes of 1,420 barrels per day representing a two per cent increase relative to the preceding quarter and a one per cent increase from the 1,402 bbls/d produced in the second quarter of 2021.
This was among the achievements outlined in the company’s operating and financial results for the three and six months ended June 30, 2022.
Touchstone achieved realised petroleum sales of $12,596,000 from an average crude oil price of $97.48 per barrel compared to petroleum sales of $7,586,000 from an average realised price of $59.06 per barrel in the comparative quarter of 2021.
It also generated an operating netback of $44.99 per barrel, a 19 per cent increase from the first quarter of 2022 and a 71 per cent increase from the $26.30 per barrel reported in the second quarter of 2021. (Trinidad Guardian)
