Touchstone Exploration Inc · TSX:TXP
Touchstone Exploration — Investor Day (December 2024)
66 slides from Touchstone Exploration's investor day presentation, December 2024
Slide 1: 2024 Capital Markets Day
DECEMBER 2024 TSX : TXP | AIM : TXP 2024 Capital Markets Day Our Growth Journey: Evolving to a fully-funded, full-cycle exploration and production company
Slide 2: Touchstone at a Glance
Touchstone at a Glance £55 million 6,294 boe/d Market Capitalisation(1) Average Daily Production(2) 48,783 boe/d 67,379 Mboe Production Capacity Gross 2P Reserves(3) 229 144,893 net acres Identified Drilling Land Holdings Locations(4) Notes: (1) Based on 236,460,661 outstanding shares multiplied by
Slide 3: Our Journey Since AIM IPO
Our Journey Since AIM IPO Looking back to the 2017 AIM IPO Achievements as of November 2024 Incremental Initial focus on crude oil Material Increase 338% increase in production Growth Through properties with 1,437 bbls/d in in Production & to 6,294 boe/d(1) Mature Fields Q3 2017 Cash Generation Sign
Slide 4: Our 5-year Vision
Our 5-year Vision Taking Advantage of a Increasing Production to Unique Growth Portfolio ~20,000 boe/d (net) Building a Sustainable, Full-Cycle Exploration and Production Company A Trinidad ‘Champion’: Expanding the Driving Leading ESG Asset Base Standards Capital Markets Day | December 2024 | 4
Slide 5: What We Delivered in 2024
What We Delivered in 2024 Production & Drilling Land Package Infrastructure M&A Cash Flow Record cash from Drilled four gross Issued three Expansion of the Maintained capital operating activities development wells new licences Cascadura facility & discipline during and production connection of Pad C
Slide 6: The Trinidad Opportunity
The Trinidad Opportunity One of the Caribbean's most promising energy markets Well-established Advanced infrastructure Oil and gas industry operating since Over 2,000 km. of pipelines 1908 Supportive government Significant hydrocarbons Sector plays an important role in the Situated in the Venezuela
Slide 7: Foundation for Growth
Foundation for Growth Production capacity of Leading land Huge domestic Active capital program 48,783 boe/d package market in 2025 • Two operated natural • 8 core properties • 4 Bcf/d total potential • Targeting 19 percent gas plants • 100% operated demand increase from 2024 • Six operated oil • 144
Slide 8: Three Strategic Pillars
Three Strategic Pillars Drill to Fill Drill for Growth Drill for the Future We are filling capacity by Our legacy oil blocks With eyes on exploration, we harnessing the potential of continue to thrive, growing are breaking new ground in Coho and Cascadura, production through Ortoire, Charuma, Cipero
Slide 9: Understanding the production curves
Understanding the production curves
Slide 10: Analogous Turbidite Decline Curves
Analogous Turbidite Decline Curves Sources: Effect of reservoir characteristics on the productivity and production forecasting of the Montney shale gas in Canada - ScienceDirect Development of shale reservoirs: Knowledge gained from developments in North America - ScienceDirect Capital Markets Day |
Slide 11: Additional Unconventional Gas Plays in Western Canada
Additional Unconventional Gas Plays in Western Canada Source: BC Energy Regulator. "British Columbia's 2022 Oil and Gas Reserves and Production Report". 2022-Oil-and-Gas-Reserves-and-Production-Report_Jan-31-2024-revision.pdf Capital Markets Day | December 2024 | 11
Slide 12: Coho-1 Gross Sales Volumes
Coho-1 Gross Sales Volumes Capital Markets Day | December 2024 | 12
Slide 13: Cascadura Gross Sales Volumes
Cascadura Gross Sales Volumes Capital Markets Day | December 2024 | 13
Slide 14: Increasingly Predictable Models
Increasingly Predictable Models (1) (1) (1) (1) (1)(2) (2) (2) Notes: (1) Based on field estimated production. (2) Management estimates. See "Advisories: Forward-looking Statements". Capital Markets Day | December 2024 | 14
Slide 15: Attractive Returns #1
Attractive Returns #1 (1) Assumptions: - Average realized crude oil and liquids price: $59/bbl - Average realized natural gas price: current contract price - Tax rate: current entity specific effective income tax rate Note: (1) See "Advisories: Oil and Gas Metrics" and "Advisories: Forward-looking S
Slide 16: Attractive Returns #2
Attractive Returns #2 (1) Assumptions: - Average realized crude oil and liquids price: $59/bbl - Average realized natural gas price: current contract price - Tax rate: current entity specific effective income tax rate Note: (1) See "Advisories: Oil and Gas Metrics" and "Advisories: Forward-looking S
Slide 17: Summary
Summary Performance in line with Extracting more data to refine Increased confidence in analogous reservoirs the model forward production Underpins 2025 guidance Capital Markets Day | December 2024 | 17
Slide 18: Cascadura Technical Summary
Cascadura Technical Summary
Slide 19: Where We Have Been
WHERE WE HAVE BEEN We have been putting the pieces together Highlights from "The Story of Cascadura - An Onshore Gas Discovery in a Mature Hydrocarbon Province" By Gavin Elsley and Danielle Belfon Capital Markets Day | December 2024 | 19
Slide 20: Trinidad: Key Geological Features
Trinidad: Key Geological Features CHARUMA RIO CLARO Cascadura 2020 ORTOIRE CIPERO Coho Central Block West - Oil Production CHARUMA 2018 2001 Forest and Cruse FM East – Oil & Gas Production Herrera FM Source Rock Cretaceous FM WD8 CO1 WD4 TXP Exploration and Production Licence TXP Key Legacy Oil Bloc
Slide 21: Herrera Formation: Mid-Miocene Deepwater Turbidites
Herrera Formation: Mid-Miocene Deepwater Turbidites Geological influences on Herrera Oil and Gas Pools Hydrocarbons accumulate along structural highs Balata Discovery c. 1952 CPTD: 6+ MMboe CENTRAL BLOCK Central Block ORTOIRE BLOCK RIO CLARO BLOCK Discovery c. 2001 Est. 500 Bcf + 25 MMbbls EUR Penal
Slide 22: Herrera Formation: Touchstone - Capturing the Fairway
Herrera Formation: Touchstone - Capturing the Fairway Rio Claro CENTRAL BLOCK ORTOIRE BLOCK Charuma Cipero RIO CLARO BLOCK Ortoire TXP Exploration and Production Licence Other Legacy on-shore Gas E&P Licence Sedimentary log of a turbidity current showing the classic Bouma Sequence Herrera Gas Produc
Slide 23: Herrera Production: Analogy - Penal Barrackpore Field
Herrera Production: Analogy - Penal Barrackpore Field • The Penal-Barrackpore feature is a Mid-Miocene anticline that trends in a SW-NE direction, plunging into the Los Bajos fault. • Prolonged NW compression from the Late Oligocene resulted in the creation of a SE verging imbricate thrust system of
Slide 24: Touchstone Land Base
Touchstone Land Base Ortoire Block (WI 132 sq. km) • 2013 Exploration Licence • 80% working interest (operated) • JV partner Heritage Petroleum Company Limited Charuma Block (WI 236 sq. km.) Charuma Eastern Block 3D Cipero Block (WI 97 sq. km.) 370 sq. km. 2004 Rio Claro Block (WI 104 sq. km.) • 202
Slide 25: Ortoire Data: Legacy (2012) Interpretation
Ortoire Data: Legacy (2012) Interpretation A BW-3 BW-1 BW-5 A’ Herrera Sheet 4 Isochron BW-3 A BW-1 Below 4800ft, 20-30deg BW-5 40-50 deg N and NE N and NW Top of Herrera @ Top of Herrera @ Top of Herrera @ 4,150 feet MD 4,120 feet MD 4,100 feet MD A’ 7a Herrera 7a Herrera 4,100 ft MD 4,150 ft MD 7a
Slide 26: Ortoire Data: Contemporary (2024) Interpretation
Ortoire Data: Contemporary (2024) Interpretation B Cascadura Deep-1 Cascadura 2-ST1 Cascadura 3-ST1 B’ Herrera Sheet 4 Time Structure B’ B Drilled by TXP - 2024 Drilled by TXP - 2020 Drilled by TXP - 2024 Capital Markets Day | December 2024 | 26
Slide 27: Ortoire Legacy Data: 2D and 3D Seismic
Ortoire Legacy Data: 2D and 3D Seismic BW-3 BW1 BW-5 Chinook A Cas-1ST1 Cas Deep-1 A' A Herrera Cas-1ST1 Cas Deep-1 H3 H4 A' Nariva H5 BW1 BW-3 Int • Mid-Miocene anticline created by south-east BW-5 directed thrusts, with possible north-directed Subthrust back-thrusts Penal-Barrackpore Analog • Stri
Slide 28: Cascadura: Simplified Structure Model
Cascadura: Simplified Structure Model Originally c. 6,200 m Capital Markets Day | December 2024 | 28
Slide 29: Cascadura: 3D-based Structural Analysis
Cascadura: 3D-based Structural Analysis Sheet 3 Sheet 3 Sheet 4 Sheet 4 Sheet 5 Sheet 5 Capital Markets Day | December 2024 | 29
Slide 30: Cascadura: Geologic Cross Section
Cascadura: Geologic Cross Section Cas-4 Cas-5 Cas-1ST1 Cas Deep-1 Planned Planned Cas-2ST1 Cas-3ST1 Thrust Fault 3 Thrust Fault 3 Top Herrera 7bc Thrust Fault 4 Thrust Fault 4 Top Herrera 7bc Open hole logs not available for main hole section Thrust Fault 5 Thrust Fault 5 CAS 1ST1 CAS DEEP CAS 2ST1
Slide 31: Balata East: Analogue and Amplitude Interpretation
Balata East: Analogue and Amplitude Interpretation Time slice with 'sweetness' amplitude and time structure contours • Balata East is shallower than Cascadura, with fewer thrust sheets and less structural complexity • Good correlation between seismic bright spots and oil bearing sands, coincident wi
Slide 32: Structural Complexity: Faulting
Structural Complexity: Faulting CAS-1ST1 CAS Deep-1 CAS-2ST1 CAS-3ST1 Sheet 4 Time Structure and ‘Ant Tracking’ Amplitude Penal-Barrackpore Analogy Vintage Data showing tear faulting • Cascadura has 3D seismic but few wells. • Seismic indicates high degree of faulting and fracturing • Likely many fa
Slide 33: Cascadura Seismic: Sheet 4 Time Structure
Cascadura Seismic: Sheet 4 Time Structure Cas-1ST1 Cas-2ST1 Cas Deep-1 Cas-3ST1 Capital Markets Day | December 2024 | 33
Slide 34: Cascadura Seismic: Sheet 4 and underlying thrust fault
Cascadura Seismic: Sheet 4 and underlying thrust fault Cas-1ST1 Cas Deep-1 Cas-2ST1 Cas-3ST1 Capital Markets Day | December 2024 | 34
Slide 35: Cascadura Seismic: Sheet 4 and overlying thrust fault
Cascadura Seismic: Sheet 4 and overlying thrust fault Cas-1ST1 Cas Deep-1 Cas-2ST1 Cas-3ST1 Capital Markets Day | December 2024 | 35
Slide 36: Cascadura Seismic: Sheets 3 and 4 Time Structure
Cascadura Seismic: Sheets 3 and 4 Time Structure Cas-1ST1 Cas Deep-1 Cas-2ST1 Cas-3ST1 Capital Markets Day | December 2024 | 36
Slide 37: Cascadura Seismic: Sheets 3, 4, and 5 Time Structure
Cascadura Seismic: Sheets 3, 4, and 5 Time Structure Cas-1ST1 Cas Deep-1 Cas-2ST1 Cas-3ST1 Capital Markets Day | December 2024 | 37
Slide 38: Cascadura Seismic: Major Tear Faults
Cascadura Seismic: Major Tear Faults Cas-1ST1 Cas Deep-1 Cas-2ST1 Cas-3ST1 Fault B Fault C Capital Markets Day | December 2024 | 38
Slide 39: Cascadura Seismic: Development Locations
Cascadura Seismic: Development Locations Cas-1ST1 -4 -5 -6 -7 Cas-3ST1 Fault B Fault C Capital Markets Day | December 2024 | 39
Slide 40: Key Land Position: Significant Future Exploration Potential
Key Land Position: Significant Future Exploration Potential Charuma Rio Claro Balata Structure • Awarded the Rio Claro block captures a large part of the Herrera Play Fairway Cipero • Already covered by 3D seismic • Legacy wells define the fairway • Gas infrastructure is in place Ortoire TXP Explora
Slide 41: 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 42: 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 Cocos CHARUMA COCOS c. 7,000 feet RIO CLARO CHARUMA CIPERO ST. CROIX
Slide 43: Where We Have Been
Where We Have Been
Slide 44: Where We Have Been: Land and capital expenditures
Where We Have Been: Land and capital expenditures TXP Working Interest Land Holdings Net Capital Expenditures(1) and Net Wells Drilled 150 30,000 125 25,000 100 20,000 Acres (000's) 75 137 $000's 15,000 3.8 wells 50 3.6 10,000 1.6 0.8 wells 11 wells wells 51 51 51 wells 25 37 34 36 31 1.6 0 5,000 we
Slide 45: 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 22 10 19 19 19 0 0 2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023 PDP 1P 2P Liquids Natural gas
Slide 46: Where We Have Been: Funds flow and EPS
Where We Have Been: Funds flow and EPS Funds Flow from Operations Net Earnings (Loss)(1) 14,000 10,000 $0.04 per 12,000 6,000 share $0.03 per $0.00 share 2,000 per 10,000 share ($0.01) (2,000) per ($0.04) share 8,000 per share $000's $000's (6,000) 6,000 ($0.06) per (10,000) share 4,000 (14,000) 2,0
Slide 47: Where We Have Been: Net debt to funds flow
Where We Have Been: Net debt to funds flow 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 - (2) 2018 2019 2020 2021 2022 2023 Sep-24 (5,000) (10,000) (1) (1) Net debt Funds Flow from Operations Net debt to Funds Flow from Op
Slide 48: Where We Are Today
Where We Are Today
Slide 49: 2024 Step Change
2024 Step Change Nine months to Sept 30, 2024 5,883 boe/d $13,134,000 $20,573,000 $29,593,000 Production Funds flow from operations Capital expenditures(1) Net debt(1) 100% increase Y-o-Y 100% increase Y-o-Y 16% increase Y-o-Y 1% reduction Y-o-Y FY 2024 Guidance(2) 5,600 – 6,200 boe/d $17,000,000 $2
Slide 50: 2025 Guidance
2025 Guidance(1) Planned Capital budget Drilling Production Funds flow & expansion of allocation operations growth balance sheet debt facilities strength Increase debt Invest approximately Includes the drilling Annual production of Generate capacity by $10 $23 million in capital of four gross (3.2 7
Slide 51: Where we are today - Operations
Where we are today - Operations
Slide 52: Acreage: We have the land
Acreage: We have the land Charuma Exploration 72,785 acres (58,227 net) TXP: 80% working interest Rio Claro NGC: 20% working interest Exploration and Development Cretaceous prospectivity 31,983 acres (25,586 net) TXP: 80% working interest 8 core properties NGC: 20% working interest Herrera, Cretac
Slide 53: 2024: Investing in resource-rich assets
2024: Investing in resource-rich assets Disciplined investment framework to establish a future with sustainable cash flow Herrera Cretaceous Nariva Charuma Existing production Rio Claro Cipero Balata East Ortoire WD-8 WD-4 CO-1 Capital Markets Day | December 2024 | 53
Slide 54: Distribution and Marketing: We have the market
Distribution and Marketing: We have the market Point Lisas • Petrochemical facilities • Potash Corp and Yara - Ammonia • Methanex – Methanol • Arcelor Mittal – Steel 4 Bcf/d total potential demand Pointe-A-Pierre – HPCL • Oil storage facility • Liquids distribution port Point Fortin – Atlantic LNG
Slide 55: Investment Case
Investment Case 48,783 boe/d processing capacity 2P gross reserves 67.4 MMboe(1) 229 identified drilling locations across several large Trusted partner with government and industry high-quality reservoirs(2) Fixed-price gas contract providing stability and Robust domestic demand and supply deficit c
Slide 56: Corporate Information and Contacts
Corporate Information and Contacts Contacts Stock Exchange Listing Office Locations TSX: TXP Paul R. Baay AIM: TXP President and Chief Executive Officer Head Office pbaay@touchstoneexploration.com Suite 4100, 350 7th Ave SW Year-end Calgary, AB T2P 3N9 (403) 750-4488 December 31 Office: (403) 750-44
Slide 57: 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 58: 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 59: Advisories
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 60: Advisories
Advisories Forward-looking Statements (continued) Investors should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement or information speaks only as of the date on which such statement is made, and Touchstone undertakes no obligation or intent to u
Slide 61: Advisories
Advisories Oil and Gas Reserves (continued) The reserves information for the Company's December 31, 2022 independent reserve report have been prepared by Touchstone's independent reserves evaluator, GLJ, dated March 3, 2023. The report was prepared in accordance with definitions, standards and proce
Slide 62: Advisories
Advisories Oil and Gas Drilling and Test Results References in this presentation to production test rates and estimated initial flow and optimization rates are useful in confirming the presence of hydrocarbons; however, such rates are not determinative of the rates at which such wells will commence
Slide 63: Advisories
Advisories Oil and Gas Metrics (continued) Recycle ratio used in this presentation is a measure used by Management to evaluate the effectiveness of a capital program and is calculated by dividing the F&D costs per barrel to the estimated operating netback per barrel over the life of the project. The
Slide 64: Advisories
Advisories Non-GAAP Financial Measures (continued) Realized commodity price per boe - is comprised of petroleum and natural gas sales as determined in accordance with IFRS, divided by the Company's total production volumes for the period. Royalties as a percentage of petroleum and natural gas sales
Slide 65: Advisories
Advisories Assumptions for Updated 2024 Guidance (continued) Variations in forecasted crude oil and liquids prices, differences in the amount and timing of capital expenditures, and variances in average production estimates and decline rates can have a significant impact on the key performance measu
Slide 66: Advisories
Advisories Assumptions for 2025 Guidance (continued) Changes in the Company's available bank debt capacity, variations in forecasted crude oil and liquids prices, differences in the amount and timing of capital expenditures, and variances in average production estimates and decline rates can have a
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