Touchstone Exploration Inc · TSX:TXP
Touchstone Exploration — Investor Presentation (December 2021)
33 slides from Touchstone Exploration's investor presentation, December 2021
Slide 1: Corporate Presentation December 2021
Corporate Presentation December 2021 Driving growth, profitability and responsibility in the Trinidad energy industry TSX : TXP | AIM : TXP
Slide 2: Touchstone at a Glance
Touchstone at a Glance Capital Structure Common shares outstanding 210,731,727 TSX share price (C$)(1) $2.34 Market capitalization (C$)(2) $493,112,241 Nine Months Ended Sept 2021 Results TSX : TXP Average daily oil production (bbls/d) 1,344 Petroleum sales ($000's) $21,356 Funds flow from operation
Slide 3: Why Touchstone
Why Touchstone Strong Assets and Management ➢ Experienced and dedicated board and management team ➢ Properties located in one of the richest hydrocarbon environments in the world ➢ World class discoveries on our exploration assets Sustainable ➢ Striving to be a leading supplier of natural gas in Tri
Slide 4: About Trinidad
About Trinidad Largest producer of oil Energy-intensive industries Access to world class and natural gas in the such as ammonia, methanol, facilities Caribbean(6) fertilizers, and aluminium House one of the largest natural 9th largest LNG supplier Methanol Holdings, Nutrien, Nitrogen, gas processing
Slide 5: Hydrocarbon Rich Environment
Hydrocarbon Rich Environment Guyana Oil EASTERN Discoveries VENEZUELA BASIN GUYANA Surname Oil SURINAME Discoveries BASIN Corporate Presentation | December 2021 5
Slide 6: Trinidad Natural Gas – Supply and Consumption
Trinidad Natural Gas – Supply and Consumption (8) Trinidad Natural Gas Production and Consumption 5,000 Trinidad Gas Consumption by Group 4,500 January 2015 - Present January 2017 to Present 4,000 4,000 3,500 3,000 3,000 MMcf/d MMcf/d 2,500 2,000 Current Production c. 2.50 Bcf/d 2,000 1,500 1,000 Av
Slide 7: Touchstone Land Holdings
Touchstone Land Holdings Core Exploration Acreage Oil Pool Developed Acreage 34,468 net working interest acres 6,418 net working interest acres Gas Pool N W E S Corporate Presentation | December 2021 7
Slide 8: Touchstone Assets
Touchstone Assets ➢ Current field production is approximately 1,400 bbls/d Producing blocks ➢ Total proved plus probable reserves of 16,462 Mboe(5) ➢ 1 development well identified (13) Coho ➢ Coho-1 estimated net initial production of approximately 1,333 boe/d(9) ➢ Total proved plus probable reserve
Slide 9: Producing Blocks
Producing Blocks “A 20-year crude oil drilling program providing Touchstone with a strong organic growth platform.” YTD Q3 crude oil production 7 Producing fields 215 Drilling locations(11) of 1,344 bbls/d Corporate Presentation | December 2021 9
Slide 10: Ortoire Phase 1 Exploration
Ortoire Phase 1 Exploration NGC GAS PIPELINE Phase 1 Exploration Coho-1 Gas Discovery Oil Discovery RIO CLARO OFFICE Balata East Cascadura-1ST1 10 MMbbls Gas Development Pad Oil Development Pad Chinook-1 Gas Pipeline Oil Pipeline Well Data Exploration Location Royston-1 Public Road Public Developmen
Slide 11: Ortoire Phase 1 - Coho
Ortoire Phase 1 - Coho NGC GAS PIPELINE Coho Reserves (2P)(5) 3,454 Mboe 2P before tax NPV10(5) $23.9 MM Gas Discovery Oil Discovery RIO CLARO OFFICE Balata East Gas Development Pad Oil Development Pad 10 MMbbls Gas Pipeline Oil Pipeline Wells drilled Well Data Exploration Location Public Road Publi
Slide 12: Ortoire Phase 1 - Cascadura
Ortoire Phase 1 - Cascadura NGC GAS PIPELINE Cascadura Reserves(5) 45,031 Mboe Gas Discovery Oil Discovery RIO CLARO OFFICE Balata East 2P before tax NPV10(5) $411.8 MM Gas Development Pad Oil Development Pad 10 MMbbls Gas Pipeline Oil Pipeline Wells drilled Well Data Exploration Location Public Roa
Slide 13: Ortoire Phase 1 – Royston (Test 1)
Ortoire Phase 1 – Royston (Test 1) NGC GAS PIPELINE Royston Reserves (2P) Not Evaluated Gas Discovery Oil Discovery Balata East 2P before tax NPV10 N/A RIO CLARO OFFICE Gas Development Pad Oil Development Pad 10 MMbbls Gas Pipeline Oil Pipeline Wells drilled Well Data Exploration Location Public Roa
Slide 14: Ortoire Phase 1 – Royston (Test 2 & 3)
Ortoire Phase 1 – Royston (Test 2 & 3) NGC GAS PIPELINE Royston Reserves (2P) Not Evaluated Gas Discovery Oil Discovery Balata East 2P before tax NPV10 N/A RIO CLARO OFFICE Gas Development Pad Oil Development Pad 10 MMbbls Gas Pipeline Oil Pipeline Wells drilled Well Data Exploration Location Public
Slide 15: Ortoire Phase 1 – Royston 1
Ortoire Phase 1 – Royston 1 NGC GAS PIPELINE Royston Reserves (2P) Not Evaluated Gas Discovery Oil Discovery Balata East 2P before tax NPV10 N/A RIO CLARO OFFICE Gas Development Pad Oil Development Pad 10 MMbbls Gas Pipeline Oil Pipeline Wells drilled Well Data Exploration Location Public Road Publi
Slide 16: Ortoire Phase 2 – Royston Deep
Ortoire Phase 2 – Royston Deep (13)(14) NGC GAS PIPELINE Royston Deep Reserves (2P) Not Evaluated Gas Discovery Oil Discovery Balata East 2P before tax NPV10 N/A RIO CLARO OFFICE Gas Development Pad Oil Development Pad 10 MMbbls Gas Pipeline Oil Pipeline Exploration Prospect Well Data Exploration Lo
Slide 17: Ortoire Phase 2 – Royston
Ortoire Phase 2 – Royston NGC GAS PIPELINE Royston Reserves (2P) Not Evaluated Gas Discovery Oil Discovery Balata East 2P before tax NPV10 N/A RIO CLARO OFFICE Gas Development Pad Oil Development Pad 10 MMbbls Gas Pipeline Oil Pipeline Well Data Exploration Location Wells Public Road Public Developm
Slide 18: Ortoire Phase 2 – Kraken
Ortoire Phase 2 – Kraken (13)(14) NGC GAS PIPELINE Kraken Reserves (2P) Not Evaluated Gas Discovery Oil Discovery Balata East 2P before tax NPV10 N/A RIO CLARO OFFICE Gas Development Pad Oil Development Pad 10 MMbbls Gas Pipeline Oil Pipeline Exploration Prospect Well Data Exploration Location Publi
Slide 19: Ortoire Phase Two Exploration Outlook
Ortoire Phase Two Exploration (13) (14) Outlook NGC GAS PIPELINE Phase Two Exploration Kraken est. pool size(15) 3,435 acres Gas Discovery Oil Discovery RIO CLARO OFFICE Balata East Steelhead est. pool size(15) 1,861 acres Gas Development Pad Oil Development Pad 10 MMbbls Gas Pipeline Oil Pipeline G
Slide 20: Reserve Growth
Reserve Growth 1P Net reserve additions increased 189% from 2019 Gross Reserves Summary(12) 2P Net reserve additions increased 194% from 2019 (Mboe) 3P Net reserve additions increased 236% from 2019 120,000 100,150 100,000 80,000 Mboe 64,947 60,000 40,000 29,791 34,238 24,456 25,540 20,376 22,056 18
Slide 21: 2021 Capital Overview
2021 Capital Overview First Half 2021 Second Half 2021 Exploration and seismic Exploration and seismic ➢ Completed and tested Chinook -1 and Cas ➢ Drill and test Royston-1 Deep-1 $2.7 ➢ Completed 22 km. 2D seismic program in ➢ Analyze and process seismic shot at Ortoire Royston area ➢ Acquired seism
Slide 22: 2022 and Beyond
2022 and Beyond Significant growth opportunity for Touchstone and the Trinidad oil and gas industry Mid term ➢ Complete the Cascadura production facility which is initially designed for 90 MMcf/d, expandable up to 200 MMcf/d ➢ Bring both Cascadura wells online, initial estimated net production to be
Slide 23: Vision and Values
Vision and Values ➢ Provide an inclusive and respectful work environment ➢ 82% of our workforce are from Trinidad ➢ 24% of our workforce are women ➢ Operate in an environmentally responsible manner to reduce our environmental footprint ➢ One environmental incident in the last two years ➢ Leading ind
Slide 24: Why Invest
Why Invest ➢ Significant near-term production uplift ➢ Cumulative increase in production from Coho, Cascadura-1ST1 and Cascadura Deep-1 of approximately 10,000 boe/d once on production(9) ➢ Multiple exploration opportunities on the gas-rich Ortoire block ➢ Provides a strong 10 year drilling program
Slide 25: Driving growth, profitability and responsibility in the Trinidad energy industry
Driving growth, profitability and responsibility in the Trinidad energy industry TSX : TXP | AIM : TXP 25
Slide 26: 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 Engineers: GLJ Ltd. Mbbls thousand barrels Office: (403) 750-4400 Auditors: KPMG LLP MMbbls million barrels Website: www.touchstoneexploration.
Slide 27: End Notes
End Notes 1) Touchstone’s November 30, 2021 closing share price on the TSX. 2) Calculated as the product of the Company’s TSX common share closing price on November 30, 2021 (C$2.34/share) and 210,731,727 common shares outstanding. 3) Non-GAAP measure. Refer to "Advisories: Non-GAAP Measures". 4) Op
Slide 28: End Notes
End Notes 10) See "Advisories: Oil and Gas Drilling and Test Results". Please refer to the Company’s news releases dated November 8, 2021 for full disclosure regarding Royston-1 drilling and production test results, including applicable advisories related thereto. 11) Development drilling locations
Slide 29: Advisories
Advisories Currency Unless otherwise stated, all financial amounts herein are presented in United States dollars. The Company may also reference Canadian dollars ("C$"), Trinidad and Tobago dollars ("TT$") and Pounds Sterling ("£") herein. Forward-Looking Statements Certain information regarding Tou
Slide 30: Advisories
Advisories 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 no obligation
Slide 31: Advisories
Advisories Business Risks (Continued) On March 11, 2020, the World Health Organization declared the outbreak of a strain of novel coronavirus disease, COVID-19, a global pandemic. The COVID-19 pandemic resulted in emergency actions taken by governments worldwide which has had an effect in all of the
Slide 32: Advisories
Advisories Oil and Gas Measures Where applicable, natural gas has been converted to barrels of oil equivalent based on six thousand cubic feet to one barrel of oil. The barrel of oil equivalent rate is based on an energy equivalent conversion method primarily applicable at the burner tip, and given
Slide 33: Advisories
Advisories Non-GAAP Measures This presentation may contain terms commonly used in the oil and natural gas industry, such as funds flow from operations and operating netback. These terms do not have a standardized meaning under Generally Accepted Accounting Principles ("GAAP") and may not be comparab
Touchstone Exploration — Investor Presentation (December 2021) on 6ix