Touchstone Exploration Inc · TSX:TXP
Touchstone Exploration — Investor Presentation (March 2023)
26 slides from Touchstone Exploration's investor presentation, March 2023
Slide 1: Corporate Presentation March 2023
Corporate Presentation March 2023 Driving production growth, profitability and responsibility in the Trinidad energy industry TSX : TXP | AIM : TXP
Slide 2: Why Touchstone
Why Touchstone Strong Assets and Management ➢ Experienced and dedicated board and management team ➢ Inventory of development and exploration opportunities ➢ Transitioning to a heavily weighted natural gas producer following success to date at our Ortoire property - targeting initial production from
Slide 3: Touchstone at a Glance
Touchstone at a Glance March 24, 2023 Capital Structure Common shares outstanding 233,037,226 AIM closing share price (£)(1) 0.61 Market capitalization (£)(2) 142,152,708 2022 Annual Results Average daily production (boe/d) 1,581 Petroleum and natural gas sales ($000's) 42,944 TSX : TXP Funds flow f
Slide 4: Reserves Growth
Reserves Growth (7) Successful Ortoire exploration program driving annual reserves growth Reserve Growth After Tax NPV10 Growth 140,000 700,000 $655 Million 120,594 Mboe 120,000 600,000 100,000 500,000 $451 Million 80,000 75,074 Mboe 400,000 $000's Mboe 60,000 300,000 $257 Million 38,463 Mboe 40,000
Slide 5: Trinidad Oil and Gas Infrastructure
Trinidad Oil and Gas Infrastructure Trinidad and Tobago Natural Gas Production/Consumption(8) Daily Natural Gas Production/Consumption (MMcf/d) 4,500 4,000 3,500 Point Lisas Industrial Complex 3,000 2,500 2,000 1,500 1,000 BALATA CENTRAL 500 Pointe-e-Pierre 0 Heritage Sales 2000 2001 2002 2003 2004
Slide 6: Proposed Asset Exchange
Proposed Asset Exchange (15) Point Lisas Industrial Complex Rio Claro Pointe-e-Pierre Heritage Sales Balata East Cascadura Coho Ortoire Point Fortin Royston Atlantic LNG San Francique Barrackpore Fyzabad CENTRAL BLOICK CATSHILL PENAL/BARRACKPORE WD-8 Cory Moruga 16.2% WD-4 Coora Oil Pipeline TXP exp
Slide 7: Touchstone Post Asset Exchange
Touchstone Post Asset Exchange (15) Point Lisas Industrial Complex Rio Claro Pointe-e-Pierre Heritage Sales Balata East Cascadura Coho Ortoire Point Fortin Royston Atlantic LNG CENTRAL BLOICK CATSHILL PENAL/BARRACKPORE WD-8 Cory Moruga 16.2% WD-4 Coora Oil Pipeline TXP exploration acreage TXP develo
Slide 8: Ortoire Overview
Ortoire Overview NGC GAS PIPELINE RIO CLARO OFFICE Balata East 10 MMbbls ➢ Continuation of prolific Penal- Barrackpore Herrera Penal / Barrackpore Cascadura Cedar Grove ➢ Numerous anticlinal trends Chinook Royston Fault identified Coho ➢ Defined structural features: Baraka overthrust, intermediate a
Slide 9: Exploration Upside – Ortoire Block
Exploration Upside – Ortoire Block Coho-1 Cascadura Royston Ortoire Gas discovery Gas discovery Light oil discovery Prospects Q4 2022 net production (boe/d) 955 Est. initial net production (boe/d)(11) 9,200 2P Reserves (Mboe)(6) 3,520 Royston Sidetrack (Royston-1ST1) Net incremental optimization 2P
Slide 10: Coho Production
Coho Production Coho-1 is our first natural gas producing well, representing the initial stage of diversifying our production mix Production commenced October 10, 2022 Q4 2022 gross production 7.2 MMcf/d (1,194 boe/d) Q4 2022 net production 5.7 MMcf/d (955 boe/d) Facility capacity 24 MMcf/d (4,000 b
Slide 11: Cascadura Development
Cascadura Development Transformational production profile Cascadura CAS-2 Best estimate TPIIP (Bcf)(6) 460.9 2P Reserves (Mboe)(6) 52,082 CAS C 2P before tax NPV10 ($MM)(6) 603.3 Wells drilled CAS -3 CAS-1ST1 & CAS Deep Estimated net initial production(11) 9,200 boe/d Net incremental optimization po
Slide 12: Royston Development
Royston Development Discovery of light sweet crude oil Royston Best estimate TPIIP (MMbbls)(6) 165.7 Overthrust , Intermediate and Subthrust structures 2P Reserves (Mbbls)(6) 3,520 2P before tax NPV10 ($MM)(6) 71.2 Wells drilled Royston-1 Total depth 10,700 ft. Feet of pay(11) 393 ft. Overthrust and
Slide 13: Kraken – Cretaceous Prospect
Kraken – Cretaceous Prospect (12)(13) The key element to success in the Cretaceous play is for minimal post charge/maturation deformation After being charged approximately 5 million years ago the Kraken structure has not moved NGC GAS PIPELINE Gas Discovery Oil Discovery RIO CLARO OFFICE Balata East
Slide 14: Trinidad 2022 Onshore Bid Round
Trinidad 2022 Onshore Bid Round Opportunity to expand onshore asset portfolio Legend TXP exploration blocks 2022 onshore bid round blocks Licensed blocks Open blocks Herrera sand fairway Ortoire Corporate Presentation | March 2023 14
Slide 15: Strategy and Upcoming Milestones: 2023 and Beyond
Strategy and Upcoming Milestones: 2023 and Beyond Significant growth opportunity for Touchstone and the Trinidad oil and gas industry Near term ➢ Test Royston-1X to evaluate the Intermediate sheet and potentially the Subthrust sheet in the Herrera Formation ➢ Complete the Cascadura production facili
Slide 16: Strategy and Upcoming Milestones: 2023 and Beyond
Strategy and Upcoming Milestones: 2023 and Beyond Mid term ➢ Design and drill two development wells at Cascadura (Cascadura-2 and Cascadura-3) ➢ Design and drill development and exploration wells at Royston, contingent on the success of Royston-1ST1(12) ➢ Continue with phase two of our exploration p
Slide 17: Operating Responsibly
Operating Responsibly ➢ Focused on hiring local content, with 83% of our workforce from Trinidad ➢ Continue to target diversity in the workforce, with 24% of our staff women ➢ Enhanced board diversity, achieving gender diversity of 33% women ➢ Culturally diverse, with a recognition of all cultural c
Slide 18: Why Invest
Why Invest ➢ Significant near-term production uplift ➢ Cumulative increase in net production from Cascadura-1ST1 and Cascadura Deep-1 of approximately 9,200 boe/d once on production(11) ➢ Multiple exploration opportunities on the gas-rich Ortoire block ➢ Exploration activities to date has added to r
Slide 19: Driving production growth, profitability and responsibility in the Trinidad energy industry
Driving production growth, profitability and responsibility in the Trinidad energy industry TSX : TXP | AIM : TXP 19
Slide 20: 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 Banker: Republic Bank Limited Mbbls thousand barrels Office: (403) 750-4400 Auditor: KPMG LLP MMbbls million barrels Website: www.touchstoneexp
Slide 21: End Notes
End Notes 1) Touchstone’s March 24, 2023 closing common share price on AIM. 2) Calculated as the product of the Company’s March 24, 2023 closing common share price on AIM (£0.61/share) and 233,037,226 common shares outstanding. 3) Non-GAAP financial or other measure. Refer to "Advisories: Non-GAAP F
Slide 22: End Notes (continued)
End Notes (continued) 6) Based on December 31, 2022 GLJ Ltd. independent reserves evaluations. Gross reserves are the Company's working interest share before deduction of royalties. See "Advisories: Oil and Gas Reserves" and "Advisories: Oil and Gas Measures". 7) Based on December 31, 2019, December
Slide 23: 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 24: Advisories (continued)
Advisories (continued) 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 n
Slide 25: Advisories (continued)
Advisories (continued) Oil and Gas Reserves (continued) The recovery and reserve estimates of crude oil, natural gas and NGL reserves provided herein are estimates only, and there is no guarantee that the estimated reserves will be recovered. Actual reserves may eventually prove to be greater than o
Slide 26: Advisories (continued)
Advisories (continued) Drilling Locations This Presentation discloses total drilling locations. Drilling locations are classified into three categories: (i) proved locations; (ii) probable locations; and (iii) unbooked locations. Proved locations and probable locations are derived from the Company's
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