Touchstone Exploration Inc · TSX:TXP
Touchstone Exploration — Investor Presentation (June 2023)
26 slides from Touchstone Exploration's investor presentation, June 2023
Slide 1: Corporate Presentation June 2023
Corporate Presentation June 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 June 16, 2023 Capital Structure Common shares outstanding 233,427,560 AIM closing share price (£)(1) 0.575 Market capitalization (£)(2) 134,220,847 Three Months Ended March 31, 2023 Results Average daily production (boe/d) 2,139 Petroleum and natural gas sales ($000's) 8,476 T
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 3,000 Industrial Complex 2,500 2,000 1,500 1,000 BALATA CENTRAL 500 0 Pointe-e-Pierre 2009 2000 2001 2002 2003 2004 2005 2006
Slide 6: Proposed Asset Exchange
Proposed Asset Exchange (10) Point Lisas Industrial Complex Rio Claro Rio Claro BALATA CENTRAL Balata East Pointe-e-Pierre Heritage Sales Cascadura Balata East Coho Ortoire Point Fortin Royston Atlantic LNG San Francique Barrackpore Fyzabad CATSHILL CENTRAL BLOCK PENAL/BARRACKPORE WD-8 Cory Moruga 1
Slide 7: Touchstone Onshore Bid Round
Touchstone Onshore Bid Round (11) Charuma Point Lisas Industrial Complex BALATA CENTRAL Pointe-e-Pierre Heritage Sales Charuma Cipero Cascadura Coho Ortoire Point Fortin Royston Atlantic LNG San Francique Barrackpore Fyzabad CATSHILL CENTRAL BLOCK PENAL/BARRACKPORE WD-8 Cory Moruga 16.2% WD-4 Coora
Slide 8: Touchstone Post Bid Round and Asset Exchange
Touchstone Post Bid Round and Asset Exchange (10)(11) Point Lisas Industrial Complex Rio Claro Rio Claro BALATA CENTRAL Balata East Pointe-e-Pierre Heritage Sales Cipero Cascadura Balata East Coho Ortoire Point Fortin Royston Atlantic LNG CENTRAL BLOCK CATSHILL PENAL/BARRACKPORE WD-8 Cory Moruga 16.
Slide 9: 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 East overthrust, intermedi
Slide 10: Exploration Upside – Ortoire Block
Exploration Upside – Ortoire Block Coho-1 Cascadura Royston Ortoire Gas discovery Gas discovery Light oil discovery Prospects Q1 2023 net production (boe/d) 854 Est. initial net production (boe/d)(13) 9,200 2P Reserves (Mboe)(6) 3,520 3 - 8 development prospects at Cascadura(12)(14) Net incremental
Slide 11: 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 Q1 2023 gross production 6.4 MMcf/d (1,068 boe/d) Q1 2023 net production 5.1 MMcf/d (854 boe/d) Facility capacity 24 MMcf/d (4,000 b
Slide 12: 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(13) 9,200 boe/d Net incremental optimization po
Slide 13: 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(13) 393 ft. Overthrust and
Slide 14: Kraken – Cretaceous Prospect
Kraken – Cretaceous Prospect (14) 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 Gas
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 up to 4 zones at Royston-1X to evaluate the subthrust sheet and the intermediate sheet in the Herrera Formation ➢ Complete the Cascadura production f
Slide 16: Strategy and Upcoming Milestones: 2023 and Beyond
Strategy and Upcoming Milestones: 2023 and Beyond Mid term ➢ Design and drill Cascadura-3, contingent on the success of Cascadura-2 ➢ Design and drill development and exploration wells at Royston, contingent on the success of Royston-1X(12)(14) ➢ Continue with phase two of our exploration prospects
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(13) ➢ 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 June 16, 2023 closing common share price on AIM. 2) Calculated as the product of the Company’s June 16, 2023 closing common share price on AIM (£0.575/share) and 233,427,560 common shares outstanding. 3) Non-GAAP financial or other measure. Refer to "Advisories: Non-GAAP Fi
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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