Message #2 From:
NewsBot Date: September 12, 2005 03:49:00 AM
TSNU News Touchstone Resources USA, Inc. Announces Farmout Agreement in McIntosh County, Oklahoma
HOUSTON--(BUSINESS WIRE)--Sept. 12, 2005--Touchstone Resources USA, Inc. (OTCBB:TSNU) ("Touchstone" or the "Company") announced today that it has closed a farmout agreement on sixteen thousand gross acres in McIntosh County, Oklahoma. The acreage is held in the wholly owned subsidiary Touchstone Oklahoma, LLC, and is prospective for hydrocarbon production from both coal bed methane and the Mississippian Shale. The area to be developed is located in the Northwest portion of the Arkoma Basin, an area that is receiving significant attention for Woodford and Caney Shale and Coal Bed Methane development by a number of operators.
Under the agreement, Touchstone will operate the AMI and drill four wells to earn a fifty percent (50%) interest in the leasehold. Costs for any subsequent wells will be borne by the parties in proportion to their interest. The first seven units have been established and pooling orders granted by the Corporation Commission of the State of Oklahoma.
The Caney Shale is a "black shale" with depths averaging 3,000 feet across the AMI. It has an average thickness of about 60 feet throughout the acreage. The Caney Shale development is analogous to the Barnett Gas Shale in the Fort Worth Basin.
Three separate coals, the Upper Booch, Middle Booch and Hartshorne, are targeted for later Coal Bed Methane development. This coal interval has an approximate mid-point depth of 1,100 feet from surface. As with many Coal Bed methane prospects, an abundant supply of subsurface data exists, which defines the coal geometry and eliminates exploration risk. During the twentieth century over seventy wells were drilled in the area penetrating through the targeted coal section, as established by drillers' logs, electric logs and density logs.
This is the first acquisition by Touchstone since Roger Abel assumed the position of CEO on August 15, 2005.
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended. All statements other than statements of historical fact contained herein, including without limitation, statements regarding the Company's future financial position, business strategy, activity, budget, projected revenues, projected costs and plans and objectives of management for future operations are forward-looking statements. The words "estimate", "project", "intends", "expects", "believes", "may", "will", "should", "could", or "would", the negative of such terms or similar expression are intended to identify forward-looking statements. Such forward-looking statements are made based on management's beliefs, as well as assumptions made by, and information currently available to management pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Such statements are not guarantees of future performance or events and are subject to known and unknown risks and uncertainties that could cause the Company's actual results, events, or financial position to differ materially from those included within the forward-looking statements. These factors include but are not limited to our ability to identify, acquire and develop oil and gas properties, our assumptions about reserve prospects, the availability of capital resources, the price of oil, natural gas and other products and services, drilling risks, future processing volumes, and pipeline throughput as well as those factors set forth in the Company's Annual Report on Form 10-KSB and its other filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date made and the Company undertakes no obligation to disclose any revision to these forward-looking statements to reflect events or circumstances after the date made or to reflect the occurrence of unanticipated events.
