TRINIDAD AND TOBAGO ENERGY CONFERENCE January 26-28, 2015 Presented by James Shipka Chief Operating Officer TSX: TXP
TOUCHSTONE EXPLORATION INC. Our vision TSX: TXP To be a distinguished international onshore oil producer. As an early adopter of proven technologies, we focus on developing plays with large volumes of oil in place to maximize…
TOUCHSTONE EXPLORATION INC. Canadian based international oil and gas Company with operations in Trinidad and TSX: TXP Western Canada Publicly Traded TSX:TXP Employs 164 staff members in Trinidad and 22 in Canada Trinidad…
WHY TRINIDAD TSX: TXP We are not in the business of finding oil we know the oil is there. Technology is a significant value creator Touchstone Exploration is focused on maximizing recovery and returns through drilling, well…
THE ISLAND OF OPPORTUNITY TSX: TXP
TRINIDAD EVOLUTION 2010 Territorial Services TSX: TXP 1 producing property 600 working interest acres 135 bbls/d production 9 identified drilling locations 5 Property acquisitions US124 MM capital investment Trinidad Office…
PRODUCTION Proforma: Average Quarterly Production Volumes (bbls/d) 2,500 TSX: TXP Trinidad Oil Production Canadian Production 2,000 Oil Production (bbls/d) 1,500 1,000 500 0 4th Qtr 1st Qtr 2nd Qtr 3rd…
2014 CAPITAL AND OPERATIONAL SUMMARY Average Brent Pricing at 98.97 US per bbl TSX: TXP Average Realized Pricing at 86.09 US per bbl Funds Flow from Operations: 10.5 MM USD Drilled: 12 Gross wells 57,267 feet 265 drilling days…
TSX: TXP 2015 and BEYOND OPERATIONS OUTLOOK BUILDING VALUE IN TRINIDAD & TOBAGO
TOUCHSTONE THREE YEAR OUTLOOK Leading onshore independent producer TSX: TXP Consistent annual growth Drill 30 wells per year Recomplete 36 wells per year May 2014 Guidance Spend 10% of annual budget on exploration projects 95…
OIL PRICE SENSITIVITIES Funds Flow and Capital deployment Drilling Uptime, Recompletions & Man Hours TSX: TXP 14,000,000 25% November 180 22% 36 12,000,000 80 20% 171 10 10,000,000 15% 120 8,000,000 USD 24…
FUNDS FLOW DETERMINES CAPITAL EXPENDITURES Brent at 80/bbl Brent at 50/bbl TSX: TXP 1% 19% 8% 26% 1% 20% 40% 13% 5% 9% 23% 8% 13% 14% Funds Flow Netbacks of US14.85 per barrel Funds Flow Netbacks of US3.85 per…
MAY 2014 OPERATIONS OUTLOOK Brent Pricing at 107.50 US per bbl TSX: TXP Realized Pricing at 94.60 US per bbl Investment Capital (Cash Flow): 24 MM USD Drilling Potential: 30 wells per year (520 drilling days) Recompletion…
DECEMBER 2014 OPERATIONS OUTLOOK Brent Pricing at 70.00 US per bbl Capital budget to be reviewed quarterly in TSX: TXP Realized Pricing at 61.60 US per bbl response to volatility of commodity prices Investment Capital via Funds…
JANUARY 2015 OPERATIONS OUTLOOK Brent Pricing at 48 US per bbl TSX: TXP Estimated Realized Price 42.24 US per bbl Investment Capital via Funds Flow: 2.0 MM USD Drilling Potential: wells per year Recompletion Potential:…
TSX: TXP HOW DO WE SUCCEED IN TODAYS COMMODITY ENVIRONMENT 115 Crude Oil Brent (ICE) 80 70 60 50
CHALLENGES MOVING FORWARD Aging Capital efficiency requires modern and reliable equipment as well TSX: TXP trained crews to operate the equipment Equipment & Technology Service infrastructure on the island is aging Production…
INVESTING IN MODERN EQUIPMENT New technology and equipment is required to TSX: TXP service base production: 2012 - LACT Unit commissioned at WD-8 2013 - Coil Tubing Unit imported 2014 - Service rig purchased - LACT Unit…
INVESTING IN RELATIONSHIPS The structure of current Agreements tends to limit an Independent Operators ability to maximize recovery factors TSX: TXP To increase production and investment, Independent Operators require flexibility…
INVESTING IN PARTNERSHIPS To maintain and optimize the pace of investment in stressed commodity environments Operators and Service Providers must work together to TSX: TXP develop a mutually acceptable pricing framework…
INVESTING IN TRINIDAD International investment flows to competitive fiscal regimes that provide certainty TSX: TXP coupled with flexibility this is most pronounced with lower commodity prices Fiscal structure and service cost…
INDUSTRY SOLUTIONS THROUGH COOPERATION Streamline access to the right Aging Investing in TSX: TXP equipment Equipment & Modern Technology Training for new and existing crews Equipment Work together to maximize Partnership…
TSX: TXP TRINIDAD REMAINS THE ISLAND OF OPPORTUNITY
Corporate Information Corporate Information Abbreviations TSX: TXP Head Office bbl(s) barrel(s) Suite 1100, 332 6th Ave SW mbbl(s) thousand barrel(s) Calgary, AB T2B 0B2 bbls/d barrels per day Office: (403) 750-4400 CAD Canadian…
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