Touchstone Says Vicksburg Project Ahead of Schedule

Touchstone Resources reports that it has tested the Diaz #3 well in its Vicksburg project, establishing an initial production rate of 2 MMCF of gas and 160 barrels of oil per day from its first completed zone. In addition, Touchstone announced that it has reached total drill depth of 8,700' on its Diaz #4 well and will commence completion operations immediately. Wes Franklin, Executive Vice President of Touchstone, said "The Vicksburg project is progressing well and we are drilling ahead of our schedule. In mid November, we stated that we expected the Diaz #3 to be as good a producer as the Diaz #2 and we are pleased that our expectations were correct. The rig from the Diaz #4 was immediately moved to drill the Yturria-Greehey #1, which reached total drill depth of 6,300' today and will commence logging tomorrow. The rig will shortly move to the Garcia #2 location."

Touchstone has approximately 8% interest in, and is also the operator of, the Vicksburg Project on approximately 5,000 acres in Starr and Hidalgo Counties in South Texas. Gross field production is currently approximately 5.5 MMCF of gas per day and 280 barrels of oil and condensate per day from 7 producing wells.