Touchstone Exploration Inc · TSX:TXP
Touchstone Exploration — Investor Presentation (October 2023)
31 slides from Touchstone Exploration's investor presentation, October 2023
Slide 1: Corporate Presentation October 2023
TSX : TXP | AIM : TXP Corporate Presentation October 2023 Our Growth Journey: Evolving towards a sustainable, full-cycle exploration and production company
Slide 2: Our Five-Year Vision
Our Five-Year Vision 01 02 Infrastructure for 42,333 boe/d (gross) High-Quality Organic Growth Portfolio Building a sustainable, • Infrastructure in place to support increased future production of ~20,000 boe/d (net) • 205 development locations identified • 24 exploration locations identified full-c
Slide 3: Touchstone Today
Touchstone Today Foundation for Growth
Slide 4: Why Trinidad?
Why Trinidad? A strategic opportunity to tap Situated within the Venezuela into one of the Caribbean's basin, recognized as one of the most promising energy world's largest hydrocarbon basins markets Well-established oil and gas Robust demand for energy at industry operating since 1908 4.0 Bcf/d and
Slide 5: Largest Independent Producer in Trinidad
Largest Independent Producer in Trinidad Transformational growth over the past 14 years 2010(1) 2011(1) Legacy blocks Legacy blocks Exploration blocks Trinidad Trinidad Rio Claro Rio Claro Cascadura Balata East East Brighton Cascadura Balata East Coho Coho Ortoire Ortoire Point Fortin Royston Point
Slide 6: Largest Independent Producer in Trinidad
Largest Independent Producer in Trinidad Transformational growth over the past 14 years 2014 Current Legacy blocks Legacy blocks Exploration blocks Exploration block Charuma Ortoire block Ortoire block Trinidad Awarded blocks(2) Trinidad Asset Exchange blocks(1) Rio Claro Balata East Charuma Cipero
Slide 7: Proven Track Record of Growth
Proven Track Record of Growth Net Acreage 2P Reserves Production 140,000 80,000 75,074 12,000 126,104(2) ~10,000(3) 120,000 70,000 10,000 Net Working Interest Acres 60,000 100,000 8,000 Mboe boe/d 50,000 80,000 40,000 6,000 60,000 53,239 30,000 4,000 40,000 20,000 10,572 2,000 1,751 20,000 14,666 10
Slide 8: 2023: A Year of Transformation
2023: A Year of Transformation Significantly increased production from 1,581 boe/d to over 10,000 boe/d (1) Completed the construction of the Cascadura facility Production commenced at our world-class discovery Current gross capacity of 17,250 boe/d The largest onshore development in Trinidad in dec
Slide 9: A Strong Platform for Future Growth
A Strong Platform for Future Growth Largest independent onshore producer in Trinidad Owned and operated infrastructure Daily production in excess of 10,000 boe/d(1) Designed to support current and future production Production split of approximately 78% natural gas 42,333 boe/d of potential gross pro
Slide 10: Strategic and Long-Term Overview
Strategic and Long-Term Overview Our 5-Year Growth Plan
Slide 11: High-Quality Assets
High-Quality Assets Near-term focus on development prospects that leverage our potential gross facility capacity of 42,333 boe/d 200+ 50 2 ~20,000 boe/d Drilling locations High-grade Rig drilling Potential gross identified development wells program production growth Corporate Presentation | October
Slide 12: High-Quality Prospects
High-Quality Prospects Focusing on prospects near existing infrastructure to maximize efficiencies 24 Balata East 10 MMbbls Exploration locations identified Char Sturgeon Cascadura Pike Guppy Muskallunge Kokanee Kraken 14 Guabine Royston Potential prospects Gibba Coho Steelhead Baraka East Baraka Ha
Slide 13: Trinidad The Geological Opportunity
Trinidad The Geological Opportunity Touchstone’s Development & Exploration Portfolio
Slide 14: Trinidad: Exceptional Source Rock
Trinidad: Exceptional Source Rock The geochemical assessment of Herrera oil reveals a Cretaceous source rock, aligning with the East Guyana and Suriname Basin Trinidad's unique Cretaceous conditions Rivers from South America fed into the Hydrocarbon source rock developed caused by deep water conditi
Slide 15: Cascadura Development
Cascadura Development Increase production and optimize the Cascadura facility through development drilling at Cascadura-2 and Cascadura-3 Cascadura C drill pad: Located northeast of Cascadura-1ST1 and Cascadura Deep-1 Approved for the potential drilling of 4 wells Cascadura-2: The first Cascadura de
Slide 16: Coho Development
Coho Development Utilize the Coho-1 drilling pad to drill Coho-2 and Coho-3/Gibba, aiming to enhance production at the Coho facility Coho-2 Coho-3 / Gibba Drill in a northeast direction Drill through the Coho sheet east of Coho-1 Targeting the Herrera sand not in communication with Coho-1 before dee
Slide 17: Cipero Exploration
Cipero Exploration (1) The last exploration well was drilled by Exxon in 1995 to a total depth of 17,587 feet The Cipero block was surveyed by 2D seismic Exploration prospects in the Retrench sands and Herrera sands target depths from 4,500 to 10,000 feet Exploration prospects in the Cretaceous sand
Slide 18: Kraken-1 Exploration Prospect
Kraken-1 Exploration Prospect Kraken-1 would be the first onshore Cretaceous attempt in more than 15 years and potentially the 7th deepest well drilled on the island of Trinidad 1993 1994 1995 2005 2006 Kraken Exxon's RP-1 drilled to Exxon's IGR-1 drilled Exxon's SCRX-1 drilled Talisman's Zaboca-1 T
Slide 19: Opportunity to Grow Our Operational Footprint
Opportunity to Grow Our Operational Footprint Actively reviewing opportunities using clear and disciplined criteria to assess potential acquisitions Significant growth potential Operational synergies for Expands upon existing through existing production, cost-effective operations and geological expe
Slide 20: Driving ESG Standards in Trinidad
Driving ESG Standards in Trinidad Leading the Way for the Oil and Gas Sector in Trinidad
Slide 21: ESG Overview
ESG Overview Improving our long-term success by considering our environmental and social impacts Environmental Social Governance 19% Nil 33% Decrease in carbon Lost time incidents Female representation intensity from 2021 in 2.5 years on the Board 7% 83% 89% Reduction in emissions in Local Independe
Slide 22: Financials
Financials
Slide 23: Financial Performance
Financial Performance Market capitalization (1)(2) C$227,186,344 Six Months Ended June 30, 2023 Average daily production 1,982 boe/d Petroleum and natural gas sales $15,657,000 Funds flow from operations(2) $809,000 Operating netback(2) $18.05/boe As of September 30, 2023 Term debt $22.5 MM - $1.5 M
Slide 24: Investment Case
Investment Case What makes Touchstone a solid investment for long-term growth? Significant Substantial Fixed-price gas High quality Opportunities Robust production cash flows to contract organic growth to expand domestic levels fuel growth delivering prospects asset base demand initiatives stable fi
Slide 25: Corporate Information and Contacts
Corporate Information and Contacts Stock Exchange Listing Contacts Office Locations TSX: TXP AIM: TXP Paul R. Baay Head Office President and Chief Executive Officer Suite 4100, 350 7th Ave SW Year-end pbaay@touchstoneexploration.com Calgary, AB T2P 3N9 December 31 (403) 750-4488 Office: (403) 750-44
Slide 26: Abbreviations
Abbreviations bbl(s) barrel(s) 1P Proved reserves bbls/d barrels per day 2P Proved plus probable reserves Mbbls thousand barrels 3P Proved plus probable plus possible reserves MMbbls million barrels AIM AIM market of the London Stock Exchange plc Mcf thousand cubic feet Brent Dated Brent Mcf/d thous
Slide 27: Advisories
Advisories This presentation is for information purposes only and is not under any circumstances to be construed as a prospectus or an advertisement for a public offering of such securities. No securities commission or similar authority in Canada or elsewhere including the TSX has in any way passed
Slide 28: Advisories (Continued)
Advisories (Continued) Forward-looking Statements (continued) Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors
Slide 29: Advisories (Continued)
Advisories (Continued) Oil and Gas Reserves All reserves references herein are Company gross reserves. Gross reserves are the Company's working interest share before deduction of royalties. Net reserves are the Company's working interest share after the deduction of royalty obligations. The December
Slide 30: Advisories (Continued)
Advisories (Continued) Product Type Disclosures This presentation includes references to crude oil, NGLs, natural gas, and average daily production volumes. Under NI 51-101, disclosure of production volumes should include segmentation by product type as defined in the instrument. In this document, r
Slide 31: Advisories (Continued)
Advisories (Continued) ESG Metrics (continued) There is no single standard system that applies across companies for compiling and calculating the quantity of greenhouse gas emissions and other sustainability metrics attributable to Touchstone's operations. Accordingly, such information may not be co
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