Touchstone Exploration Inc · TSX:TXP
Touchstone Exploration — Investor Presentation (October 2024)
36 slides from Touchstone Exploration's investor presentation, October 2024
Slide 1: Corporate Presentation October 2024
OCTOBER 2024 TSX : TXP | AIM : TXP CORPORATE PRESENTATION Our Growth Journey: Evolving to a fully-funded, full-cycle exploration and production company
Slide 2: Where We Have Been
WHERE WE HAVE BEEN We have been putting the pieces together Corporate Presentation | October 2024 | 2
Slide 3: Where We Have Been: Land and capital expenditures
Where We Have Been: Land and capital expenditures Working Interest Land Holdings Net Capital Expenditures(1) and Net Wells Drilled 120 30,000 100 25,000 80 20,000 Acres (000's) 111 $000's 60 15,000 3.8 wells 40 10,000 1.6 0.8 51 51 51 11.0 wells 3.6 wells wells wells 37 34 36 31 1.6 0 20 wells 5,000
Slide 4: Where We Have Been: Reserves
Where We Have Been: Reserves Gross Reserves(1) by Category 2P Gross Reserves(1) by Product Type 80 80 76 75 70 67 70 65 60 60 50 49 49 50 43 48 MMboe MMboe 40 40 30 30 22 19 20 20 3 27 26 10 10 22 19 19 19 0 0 2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023 PDP 1P 2P Liquids Natural gas
Slide 5: Where We Have Been: Corporate net production
Where We Have Been: Corporate net production Corporate Net Production 10,000 9,000 8,000 7,000 6,000 boe/d 5,000 4,000 3,000 2,000 1,000 - Aug-22 Oct-22 Dec-22 Feb-23 Apr-23 Jun-23 Aug-23 Oct-23 Dec-23 Feb-24 Apr-24 Jun-24 Aug-24 Crude Oil (bbls/d) Coho (boe/d) Cascadura (boe/d) Corporate Presentati
Slide 6: Where We Have Been: Funds flow from operations and net earnings per share
Where We Have Been: Funds flow from operations and net earnings per share Funds Flow from Operations Net Earnings (Loss)(1) 14,000 6,000 $0.03 $0.03 per per share 12,000 share $0.00 2,000 per share 10,000 ($0.01) per (2,000) share ($0.04) per 8,000 share (6,000) $000's $000's ($0.06) 6,000 per (10,0
Slide 7: Where We Have Been: Net debt to funds flow from operations
Where We Have Been: Net debt to funds flow from operations Net Debt to Funds Flow From Operations 30,000 25,000 4.81x 4.52x 20,000 15,000 2.41x 1.68x $000's 10,000 1.64x 1.25x 5,000 - 2018 2019 2020 2021 2022 2023 Jun-24 (5,000) (10,000) (1) (1) Net debt Funds Flow from Operations Net debt to Funds
Slide 8: Where We Have Been: Trailing twelve-month funds flow from operations
Where We Have Been: Trailing twelve-month funds flow from operations Trailing Twelve-Month Funds Flow from Operations as at June 30, 2024(1) 70,000 63,115 60,000 50,000 (14,779) 40,000 38,332 (10,004) $000's 30,000 (9,948) 97 (2,600) 23,031 (1,220) (1,630) 20,000 10,000 0 (2) (2) Petroleum Royalties
Slide 9: Where We Are Now
WHERE WE ARE NOW We have been evolving and growing Corporate Presentation | October 2024 | 9
Slide 10: Touchstone at a Glance
Touchstone at a Glance Market capitalization(1) C$141.9 million Six months ended June 30, 2024 average daily production Crude oil and liquids (bbls/d) 1,343 Natural gas (Mcf/d) 29,279 Average daily production (boe/d) 6,223 2023 Gross 2P reserves(2) (Mboe) 67,379 2P Reserve life index(2) ~14.4 years
Slide 11: Acreage: We have the land
Acreage: We have the land Charuma Exploration 72,785 acres (58,227 net) TXP: 80% working interest NGC: 20% working interest Cretaceous prospectivity 7 core properties Cipero Exploration 100% operated 29,925 acres (23,939 net) TXP: 80% working interest Balata East NGC: 20% working interest Develo
Slide 12: Distribution and Marketing: We have the market
Distribution and Marketing: We have the market 4 Bcf/d total potential demand Point Lisas • Petrochemical facilities • Potash Corp and Yara - Ammonia • Methanex – Methanol • Arcelor Mittal – Steel Pointe-A-Pierre – HPCL • Oil storage facility • Liquids distribution port Point Fortin – Atlantic LNG
Slide 13: Facilities: We have the capacity
Facilities: We have the capacity Cascadura A Natural Gas Facility Balata East Commissioned September 2023 Oil battery Two Operated Natural Gas Plants Original Design: Sales point for Cascadura liquids 90 MMcf/d natural gas capacity 6” sales pipeline (~18km) Cascadura 140 MMcf/d natural gas capacit
Slide 14: Production History: Herrera (Coho)
Production History: Herrera (Coho) Coho-1 Gross Sales Volumes 2,000 3,000 2,500 Cumulative production 1,500 3.3 Bcf natural gas Surface Tubing Pressure (psig) 2,000 Production (boe/d) 1,000 1,500 1,000 500 500 0 0 Oct-22 Dec-22 Feb-23 Apr-23 Jun-23 Aug-23 Oct-23 Dec-23 Feb-24 Apr-24 Jun-24 Aug-24 Pr
Slide 15: Production History: Herrera (Cascadura facility)
Production History: Herrera (Cascadura facility) Cascadura Facility Gross Sales Volumes 12,000 900 800 10,000 700 Export Line Pressure (psig) 8,000 600 Production (boe/d) 500 6,000 400 4,000 300 Cumulative production 13.1 Bcf natural gas 200 136.7 Mbbl condensate 2,000 100 0 0 Sep-23 Oct-23 Nov-23 D
Slide 16: Production History: CO-1 2024 new wells
Production History: CO-1 2024 new wells CO-1 2024 New Drill Gross and Net Sales Volumes 140 120 100 Oil Production (bbls/d) 80 60 40 20 0 CO-375 CO-374 Corporate Presentation | October 2024 | 16
Slide 17: Where We Are Going
WHERE WE ARE GOING We are ready Corporate Presentation | October 2024 | 17
Slide 18: Three Pillars of Progress: Fill. Grow. Future.
Three Pillars of Progress: Fill. Grow. Future. Drill to Fill Drill for Growth Drill for the Future We are filling capacity by Our legacy oil blocks With eyes on exploration, harnessing the potential continue to thrive, we are breaking new of Coho and Cascadura, growing production ground in Ortoire,
Slide 19: 2024: Investing in resource-rich assets
2024: Investing in resource-rich assets Disciplined investment framework to establish a future with sustainable free cash flow Herrera Cretaceous Nariva Charuma Existing production Balata East Cipero Ortoire WD-8 WD-4 CO-1 Corporate Presentation | October 2024 | 19
Slide 20: Technology: We have the equipment
Technology: We have the equipment Geomechanical Modeling State of the Art Drilling Rig Star Valley Rig 205 Optimized Well Pipe Handler Placement 10K BOP System BOP Transport and Test Skid 7,500 psi Circulating System Top Drive Dewatering High Performance Water Based Mud MPD - RCD MPD - Cor
Slide 21: Drill to Fill: Cascadura C drill pad
Drill to Fill: Cascadura C drill pad Cascadura C Drill Pad • Located northeast of Cascadura-1ST1 and Cascadura Deep-1 • Approved for the potential drilling of four wells CAS- CAS-3ST1 3ST1 Cascadura-2ST1 • Total depth: 7,132 feet CAS CASC • Total sand thickness: 525 feet C • Formation: Herrera sands
Slide 22: Drill to Fill: Cascadura
Drill to Fill: Cascadura Cascadura Current gross production (1) 26.3 MMcf/d Available capacity 140 MMcf/d Development Opportunities Cascadura-4 Cascadura-5 Cascadura-6 Note: (1) Based on August 2024 average sales volumes. Corporate Presentation | October 2024 | 22
Slide 23: Drill to Fill: Coho
Drill to Fill: Coho Pipeline Route Reservoir target Wells COHO Pool Coho-1 CO-82 Yarrow 621 acres COR NE 1 Coho-2 FO 1 COHO 2 Coho-2a Galap COHO 2a COHO Coho Overthrust CO 85 1 (gas sands) Gibba BARAKA EAST 1 CO 82 BARAKA 1 Yarrow Galap Coho Gibba Current gross production(1) 2.8 MMcf/d Southern Subt
Slide 24: Drill to Growth: Lease operator agreements
Drill to Growth: Lease operator agreements Current Production Touchstone Office San Fernando Block August 2024 WD-8 Charuma average daily production (bbls/d) Charuma Atlantic LNG Cipero CO-1 520 WD-4 474 WD-8 WD-8 145 WD-4 WD-4 Other 69 CO-1 Reserves Block 2P Reserves(1) Drilling Locations(2) CO-1 3
Slide 25: Drill for the Future: Cipero exploration
Drill for the Future: Cipero exploration The Cipero block was surveyed ST CROIX-1 using 2D seismic COHO-1 Exploration prospects in the Retrench sands and Herrera sands target depths from F2 PROSPECT FAULT BLOCKS 4,500 to 10,000 feet Exploration prospects in the Cretaceous sands target depths of 13,5
Slide 26: Drill for the Future: Charuma exploration
Drill for the Future: Charuma exploration Nariva The Charuma block was surveyed Outcrop primarily using 2D seismic Target 1 Charuma Block The eastern part of the Charuma Scouted Potential Drill Key Outcrop Site block was surveyed Site using 3D seismic Exploration prospects in the Nariva sands target
Slide 27: Drill for the Future: Cretaceous exploration
Drill for the Future: Cretaceous exploration Touchstone has identified multiple Cretaceous anomalies on our exploration blocks which have the potential to unlock a new onshore play type with ties to offshore discoveries near Guyana CHARUMA Cocos COCOS c. 7,000 feet CHARUMA CIPERO ST. CROIX c. 13,000
Slide 28: Social and Governance
Social and Governance Improving our long-term success by considering our impact on the communities we operate in SOCIAL GOVERNANCE 2 33% lost time incidents female representation in over 3 years on the Board 83% 89% local independent workforce board members $15.2MM 100% of local procurement employee
Slide 29: Investment Case: Why Touchstone Exploration Inc.
Investment Case: Why Touchstone Exploration Inc. 48,783 boe/d processing capacity 2P gross reserves 67.4 MMboe(2) 229 identified drilling locations across several large Trusted partner with government and industry high-quality reservoirs(1) Fixed-price gas contract providing stability and Robust dom
Slide 30: Corporate Information and Contacts
Corporate Information and Contacts Contacts Office Locations Stock Exchange Listing TSX: TXP Paul R. Baay Head Office AIM: TXP President and Chief Executive Officer Suite 4100, 350 7th Ave SW pbaay@touchstoneexploration.com Calgary, AB T2P 3N9 Year-end (403) 750-4488 Office: (403) 750-4400 December
Slide 31: Abbreviations
Abbreviations bbl(s) barrel(s) PDP proved developed producing reserves bbls/d barrels per day 1P proved reserves Mbbls thousand barrels 2P proved plus probable reserves MMbbls million barrels 3P proved plus probable plus possible reserves Mcf thousand cubic feet AIM AIM market of the London Stock Ex
Slide 32: 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 33: Advisories: Forward-looking Statements (continued)
Advisories Forward-looking Statements (continued) With respect to forward-looking statements contained in this presentation, the Company has made assumptions regarding: financial condition; outlook and results of operations; exploration, development and associated operational plans (including drilli
Slide 34: Advisories: Business Risks (continued)
Advisories Business Risks (continued) The Company is subject to industry conditions including changes in laws and regulations, including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced. There are uncertainties in estimating the Company's re
Slide 35: Advisories: Oil and Gas Reserves (continued)
Advisories Oil and Gas Reserves (continued) The reserves information for the Company's December 31, 2020 independent reserve report have been prepared by Touchstone's independent reserves evaluator, GLJ, dated March 4, 2021. The report was prepared in accordance with definitions, standards and proce
Slide 36: Advisories: Drilling Locations and Non-GAAP Measures
Advisories Drilling Locations (continued) The locations on which the Company will drill wells will ultimately depend upon the availability of capital, regulatory approvals, petroleum and natural gas prices, costs, actual drilling results, additional reservoir information that can be obtained and oth
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