Touchstone Begins Production on the Vela Ranch Project
|Tuesday, October 05, 2004
Touchstone Resources reports that its first exploration well drilled on the Vela Ranch Project has been placed into commercial production and flowed into sales at an initial rate of in excess of 2 million cubic feet ("MMCF") of gas per day. Touchstone anticipates that the rate of production will stabilize somewhere between 1.5 and 2 MMCFPD.
Touchstone owns a net revenue interest of approximately 10% of the Vela Project. Wes Franklin, Executive V.P. of Touchstone, said "the Vela Ranch Project is one of our low risk South Texas exploration projects which yields both shallow and deep producing horizons. We have confirmed several PUD (proven undeveloped) locations using 3D seismic and other technological interpretation which should create a number of additional development locations on the Vela Project and which should generate good cash flow and reserves for us over the coming months."