Touchstone Exploration Inc · TSX:TXP
Touchstone Exploration — Investor Presentation (October 2021)
28 slides from Touchstone Exploration's investor presentation, October 2021
Slide 1: Corporate Presentation October 2021
Corporate Presentation October 2021 Driving growth, profitability and responsibility in the Trinidad energy industry TSX : TXP | AIM : TXP 1
Slide 2: Touchstone at a Glance
Touchstone at a Glance Capital Structure Common shares outstanding 210,731,727 TSX share price (C$)(1) $2.01 Market capitalization (C$)(2) $423,570,771 First Half 2021 Results TSX : TXP Average daily oil production (bbls/d) 1,350 Petroleum sales ($000's) $13,706 Funds flow from operations ($000's)(3
Slide 3: Why Touchstone
Why Touchstone Strong Assets and Management ➢ Experienced and dedicated board and management team ➢ Properties located in one of the richest hydrocarbon environments in the world ➢ World class discoveries on our exploration assets Sustainable ➢ Striving to be a leading supplier of natural gas in Tri
Slide 4: About Trinidad
About Trinidad Largest producer of oil Energy-intensive industries Access to world class and natural gas in the such as ammonia, methanol, facilities Caribbean(6) fertilizers, and aluminium House one of the largest natural 9th largest LNG supplier Methanol Holdings, Nutrien, Nitrogen, gas processing
Slide 5: Hydrocarbon Rich Environment
Hydrocarbon Rich Environment Guyana Oil EASTERN Discoveries VENEZUELAN GUYANA Surname Oil BASIN SURINAME Discoveries BASIN Corporate Presentation | October 2021 5
Slide 6: Trinidad Natural Gas – Supply and Consumption
Trinidad Natural Gas – Supply and Consumption (8) Trinidad Natural Gas Production and Consumption 5,000 Trinidad Gas Consumption by Group 4,500 January 2015 - Present January 2017 to Present 4,000 4,000 3,500 3,000 3,000 MMcf/d MMcf/d 2,500 2,000 Current Production c. 2.50 Bcf/d 2,000 1,500 1,000 Av
Slide 7: Touchstone Land Holdings
Touchstone Land Holdings Core Exploration Acreage Oil Pool Developed Acreage 34,468 net working interest acres 6,418 net working interest acres Gas Pool N W E S Corporate Presentation | October 2021 7
Slide 8: Touchstone Assets
Touchstone Assets ➢ Current field production is approximately 1,350 bbls/d Producing blocks ➢ Total proved plus probable reserves of 16,462 Mboe(5) ➢ 1 development well scheduled (12) Coho ➢ Estimated net initial production of approximately 1,333 boe/d(9) ➢ Total proved plus probable reserved of 3,4
Slide 9: Producing Blocks
Producing Blocks “A 20-year crude oil drilling program providing Touchstone with a strong organic growth platform.” H1 2021 crude oil production 7 Producing fields 215 Drilling locations(10) of 1,350 bbls/d Corporate Presentation | October 2021 9
Slide 10: Ortoire Operations
Ortoire Operations 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 STEELHEAD Planned Pipeline Baraka Ka
Slide 11: Coho
Coho Coho Reserves (2P)(5) 3,454 Mboe 2P before tax NPV10(5) $23.9 MM Wells drilled Coho-1 Depth 8,560 ft. Feet of pay(9) 105 ft. Formation Herrera GR7b Estimated initial production (net)(9) 1,333 boe/d Development wells(12) 1 Exploration prospects(12) 2 Corporate Presentation | October 2021 11
Slide 12: Cascadura
Cascadura Cascadura Reserves(5) 45,031 Mboe 2P before tax NPV10(5) $411.8 MM Wells drilled CAS-1ST1 Depth 6,350 ft. Feet of pay(9) 1,037 ft. Lower formation - test 1 GR7c/GR7b Upper formation - test 2 GR7bc Estimated initial production(9) 6,133 boe/d CAS Deep-1 Depth 8,303 ft. Feet of pay(9) 2,100 f
Slide 13: Royston-1 – Natural Gas Prospect
Royston-1 – Natural Gas Prospect Royston Reserves None assigned Wells drilled ROYSTON-1 Royston-1 BASS Total depth 10,700 ft. Feet of pay(9) 393 ft. Formation Herrera GR7a/GR7bc Development wells - Exploration prospects(12) 7 STEELHEAD Corporate Presentation | October 2021 13
Slide 14: Ortoire Phase Two Exploration Outlook
Ortoire Phase Two Exploration (13) Outlook NGC GAS PIPELINE Balata East 10 MMbbls HERITAGE OIL PIPELINE GUABINE KRAKKEN Herrera Prospect Cretaceous Prospect Baraka East STEELHEAD Baraka Karamat Prospect Navette 57 MMbbls Catshill 30 MMbbls Carapal Ridge Corporate Presentation | October 2021 14
Slide 15: Reserve Growth
Reserve Growth 1P Net reserve additions increased 189% from 2019 Gross Reserves Summary(11) 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 16: 2021 Capital Overview
2021 Capital Overview First Half 2021 Second Half 2021 Exploration and seismic Exploration and seismic ➢ Completed and tested Chinook -1 and Cas ➢ Drill and test Royston-1 Deep-1 $2.7 ➢ Completed 22 km. 2D seismic program in ➢ Analyze and process seismic shot at Ortoire Royston area ➢ Acquired seism
Slide 17: 2022 and Beyond
2022 and Beyond Significant growth opportunity for Touchstone and the Trinidad oil and gas industry Mid term ➢ Complete the Cascadura production facility which is initially designed for 90 MMcf/d, expandable up to 200 MMcf/d ➢ Bring both Cascadura wells online, initial estimated net production to be
Slide 18: Vision and Values
Vision and Values ➢ Provide an inclusive and respectful work environment ➢ 82% of our workforce are from Trinidad ➢ 24% of our workforce are women ➢ Operate in an environmentally responsible manner to reduce our environmental footprint ➢ One environmental incident in the last two years ➢ Leading ind
Slide 19: Why Invest
Why Invest ➢ Significant near-term production uplift ➢ Cumulative increase in production from Coho, Cascadura-1ST1 and Cascadura Deep-1 of approximately 10,000 boe/d once on production(9) ➢ Multiple exploration opportunities on the gas-rich Ortoire block ➢ Provides a strong 10 year drilling program
Slide 20: Driving growth, profitability and responsibility in the Trinidad energy industry
Driving growth, profitability and responsibility in the Trinidad energy industry TSX : TXP | AIM : TXP 20
Slide 21: 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: KPMG LLP MMbbls million barrels Website: www.touchstoneexploration.
Slide 22: End Notes
End Notes 1) Touchstone’s October 1, 2021 closing share price on the TSX. 2) Calculated as the product of the Company’s TSX common share closing price on October 1, 2021 (C$2.01/share) and 210,731,727 common shares outstanding. 3) Non-GAAP measure. Refer to "Advisories: Non-GAAP Measures". 4) Operat
Slide 23: End Notes
End Notes 10) Development drilling locations are based on December 31, 2020 GLJ Ltd. independent reserves evaluation and internal estimates. See "Advisories: Drilling Locations". 11) Based on December 31, 2016 , December 31, 2017 , December 31, 2018, December 31, 2019 and December 31, 2020 GLJ Ltd.
Slide 24: Advisories
Advisories Currency Unless otherwise stated, all financial amounts herein are presented in United States dollars. The Company may also reference Canadian dollars ("C$"), Trinidad and Tobago dollars ("TT$") and Pounds Sterling ("£") herein. Forward-Looking Statements Certain information regarding Tou
Slide 25: 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 26: Advisories
Advisories Business Risks (Continued) On March 11, 2020, the World Health Organization declared the outbreak of a strain of novel coronavirus disease, COVID-19, a global pandemic. The COVID-19 pandemic resulted in emergency actions taken by governments worldwide which has had an effect in all of the
Slide 27: 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 28: 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 and operating netback. These terms do not have a standardized meaning under Generally Accepted Accounting Principles ("GAAP") and may not be comparab
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