Touchstone Tests Garcia #2 Well in Vicksburg Project

Touchstone Resources has tested the Garcia #2 well in its Vicksburg project, establishing an initial production rate of 800 MCF of gas and 70 barrels of oil per day from its first completed zone. There are several additional zones cased off behind pipe in the Garcia #2 which will be completed at a later date. The rate in this first zone was confirmed subsequent to fracture stimulation between 8,599' and 8,609'.

In addition, the Diaz #5 well in the Vicksburg play was logged and cored last weekend and casing was run to total drill depth of 7,250' yesterday. Completion operations will commence next week and are expected to take two weeks.

Wes Franklin, Executive Vice President of Touchstone, said "Like the Diaz #2 and #3, the Garcia #2 looks like another good producer in our Vicksburg project, assuming later exploitation of the additional zones behind pipe. We are also re-fracing the Diaz #4 within the next week and the rig has moved to the next sequence of wells, the Garcia #3, Frank Yturria #1, and the Diaz #6."

Touchstone has an 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 4.5 MMCF of gas per day and 200 barrels of oil and condensate per day from 8 producing wells.