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Touchstone Resources reports that the Yterria #1, the first exploration well drilled by Touchstone testing a new fault block in the Vicksburg Project, Texas has reached Total Drill Depth of 11,500 feet and casing has been run. Testing of the well has commenced, and test results are anticipated within the next few weeks. The Yterria #1 is evaluating a new fault block. The initial test interval is from 11,478-89 feet. Currently, the well is bleeding gas under strong pressures and will be fracture stimulated as soon as equipment can be scheduled. Two other zones at approximately 11,400 feet will be commingled with the initial zone. Other deep zones are potential at the 9,000 foot level. If this initial test is successful other development wells will define this new fault block area, complementing the two existing fault blocks in the Vicksburg Project, which is currently producing in excess of 4.5 MMCF of gas per day and over 150 barrels of oil a day. Plans are to increase daily gas production to over 10 MMCF of gas per day by the end of the year. Touchstone has continued an aggressive leasing program in the Vicksburg Project, which has now nearly doubled Touchstone's acreage under lease to almost 10,000 acres. Touchstone is the operator of the Vicksburg Project and owns a net working interest of approximately 8% of the Vicksburg Project. Touchstone anticipates drilling a minimum of 25 wells over the next three years to fully develop the Vicksburg Project, which it continues to project could yield in excess of 75 BCF of potential gas reserves.