Touchstone Exploration Inc · TSX:TXP
Touchstone Exploration — Investor Presentation (April 2021)
22 slides from Touchstone Exploration's investor presentation, April 2021
Slide 1: Corporate Presentation
Corporate Presentation Driving growth, profitability and responsibility in the Trinidad energy industry April 2021
Slide 2: Our Four Pillar Corporate Vision
Our Four Pillar Corporate Vision Trinidad is on the Venezuelan Basin with turbidite deposition Opportunity Rich Numerous hydrocarbon reservoirs for exploration and development 10 producing fields with 215 identified drilling locations(1) Stable Legacy Assets ~20 year drilling program to sustain orga
Slide 3: Hydrocarbon Rich Environment
Hydrocarbon Rich Environment Gravity Anomaly Map EASTERN CONTINENTAL SHELF DEPOSITION VENEZUELA ExxonMobil Stabroek 3D BASIN Seismic survey Latin American (2016) Concession Map 3
Slide 4: Touchstone Assets
Touchstone Assets Developed Acreage Core Exploration Acreage Oil Pool 7,836 net working interest acres 35,785 net working interest acres Gas Pool N W E S CAS Coho 4
Slide 5: Ortoire Phase 1 Exploration Results
Balata East 10 MMbbls CASCADURA Ortoire Phase 1 Exploration Results COHO COHO-1 CA S- 1S T1 CHINOOK ROYSTON ROYSTON-1 Baraka East Baraka Navette Carapal Ridge Catshill 57 MMbbls Central Block 30 MMbbls 500 Bcf natural gas, 25 MMboe NGLs OIL OIL GAS PIPELINE PIPELINE PIPELINE Coho-1 Cascadura-1ST1 Ch
Slide 6: Ortoire Phase 2 Development & Exploration Outlook
Ortoire Phase 2 Development & Exploration Outlook NGC GAS PIPELINE Balata East 10 MMbbls CASCADURA Full Development Cascadura-1ST1 HERITAGE OIL PIPELINE CHINOOK Full Development COHO Full Development GAUBINE ROYSTON KRAKKEN Herrera Prospect Full Development Cretaceous Prospect Baraka East COHO STEEL
Slide 7: Royston-1 – Natural Gas Prospect
Shell Trinidad Limited Royston-1 – Natural Gas Prospect Lizard Springs (OL-4) c. 1965 Original well was drilled in 1965. Logs indicated 700 feet of gas effect, but the well was never tested. Ortoire P10 Case Synclinal Basin P50 Case P90 Case ROYSTON-1 LOC 7
Slide 8: Ortoire Block – The Potential
Ortoire Block – The Potential Significant growth opportunity for Touchstone and the Trinidad oil and gas industry ➢ Executed a natural gas depletion sales agreement with the National Gas Company of Trinidad and Tobago Limited ("NGC") on December 18, 2020, whereby NGC will purchase all future natural
Slide 9: Stable Legacy Assets
Stable Legacy Assets “A 20-year crude oil drilling program providing Touchstone with a strong organic growth platform.” Annual 2020 crude oil 10 Producing fields 215 Drilling locations(1) production of 1,392 bbls/d 9
Slide 10: Vision and Values
Vision and Values ➢ 82% of our workforce are from Trinidad ➢ 24% of our workforce are women ➢ 620+ days since an environmental incident ➢ 2020 lost time recordable incident frequency of 0.96 ➢ Leading industry's initiative to eliminate surface release of produced water ➢ Aiming to capture all soluti
Slide 11: Trinidad Natural Gas – Supply and Consumption
Trinidad Natural Gas – Supply and Consumption (10) 4,500 Trinidad Natural Gas Production and Consumption 4,500 Trinidad Gas Consumption by Group 4,000 January 2015 – Year End 2020 4,000 January 2015 – Year End 2020 3,500 3,500 3,000 3,000 MMscf/d MMscf/d 2,500 2,500 Current Production c. 2.63 Bcf/d
Slide 12: Reserve Growth
Reserve Growth Gross Reserves Summary(11) 1P Net reserve additions increased 189% from 2019 2P Net reserve additions increased 194% from 2019 (Mboe) 3P Net reserve additions increased 236% from 2019 120,000 100,150 100,000 80,000 Mboe 64,947 60,000 40,000 29,791 34,238 24,456 25,540 20,376 22,056 18
Slide 13: Value Creation
Value Creation 2020 Annual Results Capital Structure at April 20, 2021 Petroleum Sales Operating Netback(12)(13) Term Credit Facility Market Capitalization(2) $19,592,000 $14.49/bbl $20,000,000 C$366,449,347 $7,500,000 drawn Average Crude Oil Production 1,392 bbls/d Common Shares Outstanding Funds F
Slide 14: Investment Summary
Investment Summary Significant exploration opportunities in a hydrocarbon rich environment Development opportunities from a multi-year production program on Ortoire and our legacy assets Implement our vision and values at all levels of the corporation Strong capital discipline combined with positive
Slide 15: Corporate Information Abbreviations
Corporate Information Abbreviations Head Office Year End: December 31 bbl(s) barrel(s) Suite 4100, 350 7th Ave SW bbls/d barrels per day Calgary, AB T2P 3N9 Engineers: GLJ Ltd. Mbbls thousand barrels Office: (403) 750-4400 Auditors: Ernst & Young LLP MMbbls million barrels Website: www.touchstoneexp
Slide 16: Endnotes
Endnotes 1) Development drilling locations are based on December 31, 2020 GLJ Ltd. independent reserves evaluation and internal estimates. See "Advisories: Drilling Locations". 2) Calculated as the product of the Company’s TSX common share closing price on April 20, 2021 (C$1.75/share) and 209,399,6
Slide 17: Endnotes
Endnotes 11) Based on December 31, 2016 , December 31, 2017 , December 31, 2018, December 31, 2019 and December 31, 2020 GLJ Ltd. independent reserves evaluations. See "Advisories: Oil and Gas Reserves“ and “Advisories: Oil and Gas Metric’s”. 12) Non-GAAP measure. Refer to "Advisories: Non-GAAP Meas
Slide 18: Advisories
Advisories Currency Unless otherwise stated, all financial amounts herein are presented in United States dollars. The Company may also reference Canadian dollars ("C$"), Trinidad and Tobago dollars ("TT$") and Pounds Sterling ("£") herein. Forward-Looking Statements Certain information regarding Tou
Slide 19: Advisories
Advisories Forward-Looking Statements (Continued) Investors should not place undue reliance on any such forward-looking statements or information. Further, any forward-looking statement or information speaks only as of the date on which such statement is made, and Touchstone undertakes no obligation
Slide 20: Advisories
Advisories Business Risks (Continued) The COVID-19 pandemic has resulted in emergency actions taken by governments worldwide which has had an effect in Canada, the United Kingdom and Trinidad. The actions taken by these governments have typically included, but is not limited to travel bans, mandator
Slide 21: Advisories
Advisories Oil and Gas Measures Where applicable, natural gas has been converted to barrels of oil equivalent based on six thousand cubic feet to one barrel of oil. The barrel of oil equivalent rate is based on an energy equivalent conversion method primarily applicable at the burner tip, and given
Slide 22: Advisories
Advisories Non-GAAP Measures This presentation may contain terms commonly used in the oil and natural gas industry, such as funds flow from operations, working capital, and operating netback. These terms do not have a standardized meaning under Generally Accepted Accounting Principles ("GAAP") and m
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