Message #3 From:
NewsBot Date: November 15, 2005 10:00:00 AM
TSNU News Touchstone Enters into Agreement to Acquire Large Leasehold Position in Fayetteville Shale Play in Arkansas
HOUSTON--(BUSINESS WIRE)--Nov. 15, 2005--Touchstone Resources USA, Inc. ("Touchstone") (OTC:TSNU) announced today that it has entered into an Exploration and Development Exploration Agreement to acquire and develop acreage in the Fayetteville Shale play in Northeastern Arkansas. Touchstone will own a 45% working interest in the joint operation alongside Bamco Gas, LLC., a privately held company which will own a 10% interest, and Maverick Oil and Gas (OTC:MVOG), which will own a 45% interest and serve as operator of the project through its wholly owned subsidiary Maverick Woodruff LLC.
The joint venture has already obtained leases totaling 11,209 acres and agreements to lease totaling 70,396 acres for a total of 81,765 net leasehold acres in the play, primarily in Woodruff and St. Francis Counties, and leasing operations are still actively underway. The joint venture is seeking to acquire leases totaling a minimum of 100,000 net mineral acres in the play. Data published by other operators in the play indicate that development of the Fayetteville Shale is expected to be based on horizontal development wells spaced on approximately 100 acre producing units which could yield reserves of approximately 1.5 BCF per well. The participants anticipate commencing drilling operations in the first quarter of 2006 on an initial series of six to eight test wells, with a full development program to be initiated later in 2006.
Roger Abel, Chairman and Chief Executive Officer of Touchstone, said, "The acquisition of this acreage in the Fayetteville Shale play represents the second major commitment Touchstone has made since I assumed my roles as Chairman and Chief Executive. Our position in both the Fayetteville Shale play in Arkansas and in the Woodford-Caney Shale play in Oklahoma will serve as a the foundation of low risk, low acquisition cost reserves upon which we can build our company going forward. This is a very exciting and eventful time for Touchstone. We expect to continue to build upon this foundation with additional acquisitions of properties and also to implement additional management, technical and geological support which will increase our prospect generation, evaluation and operational capabilities."
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.
