Touchstone Exploration Inc · TSX:TXP
Touchstone Exploration — Investor Presentation (November 2024)
37 slides from Touchstone Exploration's investor presentation, November 2024
Slide 1: Corporate Presentation November 2024
NOVEMBER 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 | November 2024 | 2
Slide 3: 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) 137 $000's 75 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 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 MMboe 43 48 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 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 Oct-24 Crude Oil (bbls/d) Coho (boe/d) Cascadura (boe/d) Corporate Pre
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 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) pe
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 - (2) 2018 2019 2020 2021 2022 2023 Sep-24 (5,000) (10,000) (1) (1) Net debt Funds Flow from Operations Net debt to Fu
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 September 30, 2024(1) $000's (2) (2) Notes: (1) Financial figures above represent unaudited trailing twelve-month figures as at September 30, 2024, being the sum of results dur
Slide 9: Where We Are Now
WHERE WE ARE NOW We have been evolving and growing Corporate Presentation | November 2024 | 9
Slide 10: Touchstone at a Glance
Touchstone at a Glance Largest independent onshore producer in Trinidad Market capitalization(1) C$134.8 million Nine months ended September 30, 2024 average daily production Crude oil and liquids (bbls/d) 1,325 Natural gas (Mcf/d) 27,349 Average daily production (boe/d) 5,883 2023 Gross 2P reserves
Slide 11: 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 12: 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 13: Facilities: We have the capacity
Facilities: We have the capacity Two Operated Natural Gas Plants Cascadura A Natural Gas Facility Balata East ❖ Cascadura 140 MMcf/d natural gas capacity Commissioned September 2023 Oil battery Original Design: Sales point for Cascadura liquids 90 MMcf/d natural gas capacity 4,000 bbls liquids stora
Slide 14: Production History: Herrera (Coho)
Production History: Herrera (Coho) Coho-1 Gross Sales Volumes 2,000 3,000 Cumulative production 2,500 3.4 Bcf natural gas Surface Tubing Pressure (psig) 1,500 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 Oc
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 200 2,000 14.3 Bcf natural gas Downtime in October 138.9 Mbbl condensate 2024 relat
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 | November 2024 | 16
Slide 17: Where We Are Going
WHERE WE ARE GOING We are ready Corporate Presentation | November 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 Rio Claro Cipero Balata East Ortoire WD-8 WD-4 CO-1 Corporate Presentation | November 2024 | 19
Slide 20: Technology: We have the equipment
Technology: We have the equipment State of the Art Drilling Rig Geomechanical Star Valley Rig 205 Modeling Optimized Well Placement Dewatering High Performance Water Based Mud MPD - RCD ▪ Pipe Handler ▪ 10K BOP System ▪ BOP Transport and Test Skid MPD - Coriolis Flow ▪ 7,500 psi Circulating System M
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 Cascadura-2ST1 CAS-3ST1 • Total depth: 7,132 feet • Total sand thickness: 525 feet CAS C • Formation: Herrera sands • First produc
Slide 22: Drill to Fill: Cascadura
Drill to Fill: Cascadura Cascadura Current gross production(1) 17.8 MMcf/d Available capacity 140 MMcf/d Development Opportunities Cascadura-4 Cascadura-5 Cascadura-6 Note: (1) Based on October 2024 average sales volumes. Corporate Presentation | November 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) 2.6 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 October 2024 WD-8 Charuma average daily production (bbls/d) Charuma Atlantic LNG Cipero CO-1 455 WD-4 439 WD-8 WD-8 162 WD-4 WD-4 Other 186 CO-1 Reserves Block 2P Reserves(1) Drilling Locations(2) CO-1
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: Rio Claro (Herrera fairway prospectivity)
Drill for the Future: Rio Claro (Herrera fairway prospectivity) The Rio Claro block has been surveyed using both 2D and 3D seismic Step-out prospects in the Herrera sands updip of discoveries at RIO CLARO Cascadura and Royston Exploration prospects in the Herrera and Nariva sands FD Balata East targ
Slide 28: 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 CIPERO ST. CROIX CHARUMA
Slide 29: 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 30: 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 31: 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 32: 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 33: 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 34: Advisories: Forward-looking Statements
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 35: Advisories: Business Risks
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 36: Advisories: Oil and Gas Reserves
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 37: Advisories: Drilling Locations
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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