Touchstone Exploration Inc · TSX:TXP
Touchstone Exploration — Investor Presentation (April 2024)
34 slides from Touchstone Exploration's investor presentation, April 2024
Slide 1: Corporate Presentation April 2024
TSX : TXP | AIM : TXP Corporate Presentation April 2024 Our Growth Journey: Evolving towards a sustainable, full-cycle exploration and production company
Slide 2: Touchstone at a Glance
Touchstone at a Glance Largest independent onshore producer in Trinidad Market capitalization(1) £105.4 million Q1 2024 average daily production Crude oil and liquids (bbls/d) 1,428 Natural gas (Mcf/d) 33,521 Q1 2024 average daily production (boe/d) 7,015 Current facility capacity (boe/d) 21,250 202
Slide 3: Touchstone Today
Touchstone Today Foundation for growth
Slide 4: Fourth Quarter 2023 Highlights
Fourth Quarter 2023 Highlights Q4 2023 Q4 2022 Average daily production 282% Crude oil and liquids (bbls/d) 1,755 1,274 Increase in production Natural gas (Mcf/d) 40,491 5,729 from Q4 2022 Average daily production (boe/d) 8,504 2,229 Average realized prices(1) 109% Crude oil and liquids ($/bbl) 72.4
Slide 5: A Year of Transformation
A Year of Transformation Completed the construction of the Cascadura facility Production commenced at our world-class discovery Current gross capacity of 17,250 boe/d The largest onshore development in Trinidad in decades • 90 MMcf/d of natural gas • 2,250 bbls/d of liquids Safely delivered first pr
Slide 6: Developed a Platform for Future Growth
Developed a Platform for Future Growth Largest independent onshore producer in Trinidad Owned and operated infrastructure Daily production in excess of 7,000 boe/d(1) 42,333 boe/d of potential gross processing capacity Production split of approximately 80% natural gas Designed to support current and
Slide 7: Corporate Production boe/d
Corporate Production 10,000 9,000 8,000 7,000 6,000 boe/d 5,000 4,000 3,000 2,000 1,000 0 Legacy Production (bbls/d) Coho Production (boe/d) Cascadura Production (boe/d) Corporate Presentation | April 2024 7
Slide 8: 2024 Budget and Guidance
2024 Budget and Guidance Driving near and long-term value creation for our investors
Slide 9: Fostering Growth
Fostering Growth Annual 2024 Guidance(1) Capital expenditures(2) ($000's) 33,000 Average daily production range (boe/d) 9,100 to 9,700 % natural gas 82% % crude oil and liquids 18% Exit daily production (boe/d) 14,500 Average Brent crude oil price ($/bbl) 75.00 % realized discount to Brent benchmark
Slide 10: 2024 Capital Program Financing
2024 Capital Program Financing(1) Entered into a binding term sheet increasing borrowing capacity by $13 million New $10 million five-year non-revolving term loan facility with no principal repayment in the first year and equal quarterly payments thereafter Increased our revolving loan facility from
Slide 11: 2024: Investing in Resource-Rich Assets
2024: Investing in Resource-Rich Assets Disciplined investment framework to establish a future with sustainable free cash flow Cascadura(1) Development wells: Two Exploration wells: - Spud dates: First half 2023 Trinidad First production: Late Q3 2024 Coho/Gibba(1) Cascadura Development wells: One E
Slide 12: Cascadura Development
Cascadura Development Cascadura A Cascadura B Cascadura C Cascadura C drill pad: Located northeast of Cascadura-1ST1 and Cascadura Deep-1 Approved for the potential drilling of four wells SW Cascadura Facility NE Cascadura-2ST1: Total depth: 7,132 feet Total sand thickness: 525 feet CAS B-1 CAS B-2
Slide 13: Cascadura Development
Cascadura Development CAS-3ST1 CAS-4 CAS C CAS-2 ST1 CAS B-1 CAS B CAS B CAS A CAS Deep-1 CAS B-2 CAS A CAS Deep-1 CAS-1ST1 CAS-1ST1 750m 0 Gas discovery Gas development well Cascadura facility Corporate Presentation | April 2024 13
Slide 14: Coho Development
Coho Development Coho-2 Anticipated total depth: 5,500 feet Drill in a northeast direction Coho-1 Located 0.5 km. downhole from the Coho facility Coho-2 Targeting the Herrera sand not in communication with Coho-1 Corporate Presentation | April 2024 14
Slide 15: Coho-3 / Gibba Exploration Prospect
Coho-3 / Gibba Exploration Prospect Utilize the Coho-1 drilling pad to drill Coho-3/Gibba, targeting the Subthrust sheet Coho-3 / Gibba Anticipate total depth: 11,000 feet Drill through the Coho sheet east of Coho-1 to the southern Subthrust structure COHO-1 COHO-2 Gibba Prospect Coho Overthrust (ga
Slide 16: Asset Overview
Asset Overview Sustainable long term growth
Slide 17: High-Quality Assets
High-Quality Assets Positioned for the future with low-risk field development and significant exploration potential Legacy blocks 42,333 boe/d Exploration block Potential gross facility capacity Ortoire block Trinidad Charuma Awarded blocks(1) 150,043 Asset Exchange blocks(1) net acres of potential
Slide 18: Ortoire Exploration
Ortoire Exploration Focusing on prospects near existing infrastructure to maximize efficiencies Balata East 24 10 MMbbls Exploration locations identified Char Sturgeon Cascadura Pike Guppy Muskallunge Kokanee Royston Kraken 14 Guabine Potential prospects Gibba Coho Steelhead Baraka East Baraka Halib
Slide 19: Cretaceous Exploration
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 RIO CLARO CHARUMA CIPERO ST. CROIX c. 13,000 feet ORTOIR
Slide 20: Rio Claro and Balata Deep Exploration
Rio Claro and Balata Deep Exploration (1) Certain Ortoire Herrera prospects extend into the Rio Claro and Balata East Deep blocks and can be drilled from locations with CEC approval Reservoir plays identified for further analysis: Two prospective targets identified below Two prospective targets iden
Slide 21: Cipero Exploration
Cipero Exploration (1) The last exploration well was drilled by Exxon in 1995 to a total depth of 17,587 feet The Cipero block was surveyed by 2D seismic Exploration prospects in the Retrench sands and Herrera sands target depths from 4,500 to 10,000 feet Exploration prospects in the Cretaceous sand
Slide 22: Charuma Exploration
Charuma Exploration (1) The Charuma block was surveyed primarily by 2D seismic The eastern part of the Charuma block was surveyed by 3D seismic Exploration prospects in the Nariva sands target depths from 2,000 to 5,000 feet Exploration prospects in the Cretaceous sands target depths of 7,000 feet a
Slide 23: Driving ESG Standards in Trinidad
Driving ESG Standards in Trinidad Leading the way for the oil and gas sector in Trinidad
Slide 24: ESG Overview
ESG Overview Improving our long-term success by considering our environmental and social impacts Environmental Social Governance 19% Two 33% Decrease in carbon Lost time incident Female representation intensity in 2022 from 2021 in over 3 years on the Board 7% 83% 89% Reduction in emissions in Local
Slide 25: Investment Case
Investment Case What makes Touchstone a solid investment for long-term growth? Significant Increased cash Fixed-price gas High quality Opportunities Robust development flows to fuel contract organic growth to expand domestic opportunities growth delivering prospects asset base demand initiatives sta
Slide 26: Corporate Information and Contacts
Corporate Information and Contacts Stock Exchange Listing Contacts Office Locations TSX: TXP AIM: TXP Paul R. Baay Head Office President and Chief Executive Officer Suite 4100, 350 7th Ave SW Year-end pbaay@touchstoneexploration.com Calgary, AB T2P 3N9 December 31 (403) 750-4488 Office: (403) 750-44
Slide 27: Abbreviations
Abbreviations bbl(s) barrel(s) 1P Proved reserves bbls/d barrels per day 2P Proved plus probable reserves Mbbls thousand barrels 3P Proved plus probable plus possible reserves MMbbls million barrels AIM AIM market of the London Stock Exchange plc Mcf thousand cubic feet Brent Dated Brent Mcf/d thous
Slide 28: 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 29: Advisories
Advisories 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 drilling, testing, facilities construction an
Slide 30: Advisories (Continued)
Advisories (Continued) 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
Slide 31: 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 32: 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
Slide 33: Advisories (Continued)
Advisories (Continued) Non-GAAP Financial Measures (continued) Funds flow from operations is included in the Company's consolidated statements of cash flows. Touchstone considers funds flow from operations to be a key measure of operating performance as it demonstrates the Company's ability to gener
Slide 34: Advisories (Continued)
Advisories (Continued) Assumptions for 2024 Guidance The significant assumptions used in the forecast of average daily production, funds flow from operations and net debt are summarized below. These key performance measures are based on the midpoint of 2024 average production guidance of 9,400 boe/d
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