Touchstone Increase Stake in Wharton County Acreage

Touchstone Resources has increased the amount of acreage owned in its Wharton County Project from approximately 900 acres at the inception of the project to approximately 4,000 acres currently in two different prospects, the Colorado Bend and the Duncan. The Duncan fault trends correlate with a producing field eight miles to the west of Duncan that may cumulatively produce over 150 BCF of reserves. The collective area under the Duncan structural closures exceeds the area for the neighboring field.

Touchstone says the next well to be drilled on the project, the Goudeau #1, a 16,000 foot Wilcox test has been spudded and should take approximately 30 days to drill. The Goudeau #1 should test a number of different formations that all produce prolifically in the area. Wes Franklin, Executive Vice President of Touchstone, said, "there are at least two other separate prospects on the Duncan acreage, and at different locations, a number of shallower horizons are prospective. Our Goudeau #1 well location should encounter a number of pay sands, and if successful, should allow us the opportunity to drill up to 20 additional offset locations which could prove up as much as 200 BCF of gas reserves in this project. Given the reserves proven in the nearby field and the technical work we have undertaken we are most excited about the potential for the Goudeau #1." Touchstone is the operator of the Wharton County Project and has a net interest of approximately 18% of the project.