“our goal is to be the largest and most profitable onshore ... · 1/6/2017 · q3 2018 financial...

“Our goal is to be the largest and most profitable onshore producer in Trinidad”

January 2019

LSE / TSX: TXP

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1

Touchstone Exploration Inc. 2

Forward-looking Information

Certain information regarding Touchstone set forth in this presentation, including assessments by the Company’s Management of the Company’s plans and futureoperations contains forward-looking statements that involve substantial known and unknown risks and uncertainties. All statements other than statements ofhistorical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “seek”,“anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe”and other similar expressions. Statements relating to “reserves” and “resources” are deemed to be forward-looking statements, as they involve the impliedassessment, based on certain estimates and assumptions, that the reserves and resources described exist in the quantities predicted or estimated, and can beprofitably produced in the future. The Company has a reasonable basis for disclosing such statements, which represent the Company’s internal projections,estimates or beliefs concerning future growth, and results of operations. With respect to forward looking information contained in this presentation, the Companyhas made assumptions regarding, among other things: production rates and production decline rates; the success of exploration opportunities; the magnitude ofand ability to recover oil and gas reserves; plans for and results of drilling activity; well abandonment costs; the ability to secure necessary personnel, equipment,production licenses and services; environmental matters; future commodity prices; changes to prevailing regulatory, royalty, tax and environmental laws andregulations; the impact of competition, future capital and other expenditures (including the amount, nature and sources of funding thereof); future financingsources; and business prospects and opportunities, among other things.

Many of the foregoing assumptions are subject to change and are beyond the Company's control. Some of the risks that could affect the Company's future resultsand could cause results to differ materially from those expressed in the forward looking information are described under the heading “Business Risks” in thispresentation. New factors emerge from time to time, and it is not possible for Management to predict all of such factors and to assess in advance the impact ofeach such factor on Touchstone’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from thosecontained in any forward-looking statements.

In particular, forward-looking statements contained in this presentation may include, but are not limited to statements with respect to: the Company’s operationalstrategy, including targeted jurisdictions and technologies used to execute its strategy; the success of any new exploration opportunities; production levels; thequantity and estimated commerciality of the Company’s reserves; drilling and recompletion plans and the anticipated timing thereof; and activities to beundertaken in various areas.

Investors should not place undue reliance on any such forward-looking statements or information. Further, any forward-looking statement or information speaksonly as of the date on which such statement is made, and Touchstone undertakes no obligation to update any forward-looking statements or information except asrequired by law, including securities laws. All forward-looking statements and information contained in this presentation are qualified by such cautionarystatements.

Calgary Based E&P Operating in Trinidad 3

0

Established in 2010 with ~131 bbls/d of oil production

Grown through acquisitions and drilling to approx. 1,900 bbls/d (100% oil)(1)

Dually Listed on Toronto (TSX) and London (AIM) under the trading symbol TXP

Market capitalization of $29.7 million(2)

YTD Q3 2018 funds flow from operations of $9.1 million

Business Strategy 4

Growth

Value Creation

Cash flow positive with a balance sheet to

support our current capital program

Scalable Economic Growth

19 onshore blocks, 10 producing blocks and over

200 defined drilling locations(1)

Exploration Upside

Exploring new opportunities that if successful could

represent step changes for the Company

Q3 2018 Financial Position 5

Capital Structure Q3 2018 YE 2017 YE 2016

Common shares outstanding 129,021,428 129,021,428 83,137,143

Market capitalization ($000’s)(1) 38,061 29,030 12,055

Cash ($000’s) 6,835 13,920 8,433

Working capital ($000’s)(2)(3) 2,025 6,808 846

Credit facility principal balance ($000’s) 15,000 15,000 15,000

Net debt ($000’s)(3)(4) 12,975 8,192 14,154

Three months ended Sept. 30 Nine months ended Sept. 30

2018 2017 2018 2017

Petroleum revenue ($000’s) 12,890 7,885 35,782 22,712

Petroleum sales (bbls/day) 1,758 1,437 1,674 1,351

Operating netback ($/bbl)(3)(5) 37.13 24.46 36.40 22.70

Funds flow from operations ($000’s) 3,260 1,387 9,119 2,218

Net earnings (loss) ($000’s) 267 (1,203) (300) (4,600)

Net earnings (loss) – $ per basic and diluted share 0.00 (0.01) (0.00) (0.05)

Capital expenditures ($000’s) 5,121 2,091 13,924 8,285

80.00

90.00

100.00

110.00

120.00

130.00

140.00

150.00

160.00

170.00

180.00

Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18

Pri

ce (

reb

ase

d t

o 1

00

)

Touchstone Exploration Inc FTSE AIM All Share FTSE AIM All Share / Oil & Gas - SS

Stock Performance: AIM 6

Source: GMP FirstEnergy

Touchstone vs. AIM

Trinidad 7

N O R T H E R N R AN G E

Rich history in commercial oil production, having been involved in the petroleum sector for over 100 years(1)

Cumulative production since 1908 has totaled over 3 billion barrels of oil(2)

Trinidad has proven oil reserves of 0.2 billion barrels as at year-end 2017 and produced 99,000 barrels of crudeoil per day in 2017(2)

The 8th largest exporter of LNG in the world(3)

GULF OF PARIA

11 km. (7 mi) Columbus Channel

Land Position 8

4

CARAPAL RIDGE

COROSAN

CARAPAL RIDGE

BARAKA

BARAKA EAST

P.A.P.REFINERY

SAN FERNANDO

ORTOIRE

Nine undeveloped or exploration blocks

55,042 net working interest acres

Four high grade exploration opportunities

Exploration Upside

FYZABADSAN FRANCIQUE

BARRACKPORE

WD-4

WD-8

COORA

PALO SECOSOUTH PALO SECO

NEW DOME

Balanced Approach to Value Creation

Ten developed and producing blocks

7,910 net working interest acres

208 drilling locations(1)


Good Things Happen When You Drill Wells 9

DRILLING CAMPAIGN 2017 2018

DEVELOPMENT BLOCK PLANNED COMPLETED PLANNED COMPLETED

WD-8 - - 6 5

WD-4 2 2 2 2

COORA 1 2 2 2 2

COORA 2 - - 2 2

SOUTH PALO SECO - - 2 -

COORA

WD-8

SAN FRANCIQUE

FYZABAD

WD-4

SOUTH PALO SECOPALO SECO

NEW DOME

New Well Economics(1)(2)(3) 10

Payout Period for Development Wells(months)

Crude Oil Rate (bbls/d) – No decline

30 40 50 60 70 80 90 100

Bre

nt

Oil

Pri

ce (

US$

Fla

t)

$40 120 101 79 65 55 47 41 37

$45 99 73 57 47 40 34 30 26

$50 79 58 45 37 31 26 23 20

$55 65 47 37 30 25 22 19 17

$60 76 51 39 31 25 22 19 17

$65 62 42 32 25 21 18 16 14

$70 51 36 27 22 18 16 14 12

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18

Cru

de

Oil

Pro

du

ctio

n (

bb

ls/d

)

Touchstone Crude Oil SalesJanuary 1, 2016 through December 31, 2018

Average Monthly Production 11

Swab production

Base production

Recompletions

2017 New Wells

2018 New Wells

Onshore Drilling Activity in Trinidad 12

0

10,000

20,000

30,000

40,000

50,000

60,000

TouchstoneExploration

Petrotrin PCSL Trinity Exploration Lease Operators Fram Exploration Columbus Rocky Point Range Resources

Mea

sure

d F

eet

Dri

lled

Operator

Onshore Drilling - Total Feet Drilled by OperatorJanuary 1, 2018 through October 31, 2018

3 wells3 wells

3 wells

0 wells 0 wells 0 wells 0 wells

11 wells (2)

8 wells

2018 Drilling Activity

(Publicly Available Data)(1)

3 w

ells

dri

lled

No

v 1

–D

ec 3

1, 2

01

8

ORTOIRE BLOCK 80% Working Interest

35,785 net acres

Central Block500 bcf

25 mmboe Liquids

Navette60 mmbls

Balata East10 mmbbls

Catshill30 mmbbls

Ortoire Exploration Prospects 13

Eleven internally identified exploration locations defined by four general prospects:

» Corosan Gas 3 wells Herrera FM est. TD 8,000’ - 11,000’

» Ortoire West Oil 3 wells Herrera FM est. TD 11,500’

» Ortoire Central Gas 4 wells Herrera FM est. TD 11,500’ – 12,500’

» Ortoire East Oil 4 wells Cruse/Gros Morne FM est. TD 5,000’ – 6,000’

EastCentral

West

Corosan

Ortoire Exploration Upside – Herrera Formation

The Herrera sandstone reservoirs are turbidite depositsTurbidite deposits are formed by massive gravity flows down the offshore continental shelf and slope

Fine-grained sands are channeled down into the shale basin following these currents

Reservoir sands are thinly interbedded with basinal shales

Cyclic deposition – thousands of feet of interbedded shales and sands possible

Repetition of sand and shale deposits contributes to both reservoir and trapping mechanisms

14

Source: Earth System History, Third Edition, 2009, W.H. Freeman and Company

Turbidite Production Around The World

Turbidite focus increased in the 1970’s and 80’s

Most wells testing the Herrera in Ortoire were drilled in the 1950’s and 60’s when there was little (local) emphasis on turbidite deposits or their potential

Logging tools at that time could not resolve the thin beds and therefore intervals oftenappeared shalier than they were

Heavy mud weights used often masked shows

15

World Turbidite Fields – 10 MMboe Turbidite Reserves in 54 World Basins

U.S. Gulf of Mexico Turbidite Fields, Discoveries

Source: Turbidite play’s immaturity means big potential remains, Oil and Gas Journal, May 10, 1998, Henry S. Pettingill

Turbidite Deposition in Trinidad

(MODERN DAY)

TRINIDAD

16

Mid Miocene c. 15 million years agoHerrera Formation – Turbidite SandsUpper Cipero Formation – Basinal Shales

Corosan Prospects

Vintage Petroleum Inc.

Corosan (COR-1)Spud: June 15, 2001

Corosan

17

DST #4 3.7 MMcf/d

DST #3 4.4 MMcf/d

Herrera gas target

Offsetting 500 bcf Central Block

Key well with gas test drilled in 2001

Gauged 8.2 MMcf/d of gas

COROSAN-1 (spud June 2001)

Vintage Petroleum Inc. (Aventura/Vermillion)

60 feet of Net Hydrocarbon (Rt >4Ω)

6 Drill Stem Tests

Test #3 5760-68’ (8’NOS) 4.4 MMcf/d

Test #4 5500-16’ (16’NOS) 3.7 MMcf/d

Corosan Gas Opportunity

Three unique locations identified (individual anomalies/fault blocks)

Gas processing facility at Carapal Ridge (Shell operated)

Approximate 3.5 km. tie-in

Access to NGC and LNG sales streams

Corosan West Prospect – Internal Volumetric Estimate 18

P90

P50P10

Top Herrera – 5,188’ TVDSS (Shallow Prospect)

P90

P50P10

Top Herrera – 9,172’ TVDSS(Deep Prospect)

COROSAN PROSPECTGross Company Working Interest 80%

Unrisked Risked

Low Best High Chance of Best

Recoverable Volumes Estimate Estimate Estimate Commerciality Estimate

Contingent Resources (Development Pending)

Residue (Natural) Gas (MMcf) 6,552 10,584 16,128 95% 10,055

Oil Equivalent (Mboe) 1,179 2,058 3,387 95% 1,955

Prospective Resources (Prospect)


Oil Equivalent (Mboe) 272 1,190 4,128 30% 362

Net Present Values (C$000's) (Contingent + Prospective Resources)

5% Discount (NPV5) 11,079$ 43,446$ 126,747$ 73% (x) 31,700$

10% Discount (NPV10) 9,030$ 36,381$ 102,869$ 73% (x) 26,579$

Future Development Capital (Unrisked) (Contingent + Prospective Resources)

Estimated FDC (C$000's) 8,816$ 8,816$ 8,816$

Total Wells 2 2 2

Production Potential (Unrisked) (Contingent + Prospective Resources)

Years 8 9 14

Peak (boepd) 1,084 1,965 3,336

(1),(2)

Balata West Prospects

On trend with known production at Central Block and Catshill field

Reinterpretation of 1950 vintage logs and correlation to Corosan-1 Log c. 2001

BW-5 well had oil production (>27,000 bbls) but did not reach primary target

BW-7 and BW-7X wells were not tested due to interpretive and technical issues

Potential for deeper Herrera sands

1,172’ Gross Herrera thickness821 feet of Net Hydrocarbon PayOil observed on coreInterpreted to be uneconomic at time and sidetracked

1,552’ Gross Herrera thickness1,253 feet of Net Hydrocarbon Pay113 lbs/ft3 mud weightFree oil while drilling“severe tectonics” (bed angles) Not tested

19

Balata West BW-5 (c. 1958)

Free oil observed while drilling Herrera FM

125 lbs/ft3 mud weight

187 feet of net hydrocarbon (Rt >5Ω)

44 feet of reservoir completed

Repeat section not tested due to stuck pipe

STRUCTURE TOP HERRERA

Balata West Prospects – Independent Prospect Evaluation 20

ORTOIRE WEST PROSPECTGross Company Working Interest 80%

Unrisked Risked




Oil (Mbbls) 396 944 2,190 95% 897

Oil Equivalent (Mboe) 396 944 2,190 95% 897


Oil (Mbbls) 1,584 6,240 18,768 34% 2,134



5% Discount (NPV5) 24,814$ 165,662$ 558,064$ 41% (x) 67,160$

10% Discount (NPV10) 14,738$ 108,909$ 343,604$ 41% (x) 44,184$


Estimated FDC (C$000's) 54,030$ 111,333$ 202,117$

Total Wells 15 38 65


Years 17 25 36

Peak (boepd) 996 2,413 5,599

(1),(2)

Ortoire Central Prospect - OL-4 Logs/Data

75

0’ t

hic

k in

terv

al

Not Deep Enough to encounter the Hr 7bc sections

10,382’ TD

Her

rera

7A

ORIGINAL OL-4 LOG DIGITIZED OL-4 LOG

Very limited data in the well files:Weekly drilling reportsSP and resistivity logDirectional log

SHELL TRINIDAD LIMITED LIZARD SPRINGS WELL OL-4ABANDONED DECEMBER 1965

Key data pointGas cut mud @ 9,136’ (above Herrera 7A Section)Mud weight increased to 116 lbs/ft3 (~15.5 ppg)

21

Ortoire Central Prospect – Seismic Profile 22

Ortoire synclinal

basin

P10 Case

P50 Case

P90 Case

ORTOIRE CENTRAL PROSPECTGross Company Working Interest 80%

Unrisked Risked




Residue (Natural) Gas (MMcf) - - - - -

Oil Equivalent (Mboe) - - - - -





5% Discount (NPV5) 26,479$ 156,644$ 438,824$ 34% 53,572$

10% Discount (NPV10) 18,228$ 109,810$ 290,076$ 34% 37,555$


Estimated FDC (C$000's) 12,005$ 18,522$ 25,019$

Total Wells 2 4 6


Years 23 35 46

Peak (boepd) 1,457 6,374 11,969

(1),(2)

Why Touchstone? 23

Value Creation

Realized $12.9 million in Q3 2018 petroleum sales

Q3 2018 funds flow from operations of $3.3 million

Q3 2018 operating netback of $37.13 per barrel(3)


Drilled 11 oil wells in 2018

Total 2P reserves of 15,698,000 bbls(1)

Currently producing approximately 1,900 bbls/d(2)

Exploration Upside

Four significant world class exploration prospects

Mix of oil and gas opportunities

2019 and beyond

Appendix - Corporate Information

Abbreviations

bbl(s) barrel(s)

Mbbl(s) thousand barrel(s)

MMbbls(s) million barrel(s)

bbls/d barrels per day

bopd barrels of oil per day

boe barrels of oil equivalent

Mboe thousand barrels of oil equivalent

MMboe million barrels of oil equivalent

boepd barrels of oil equivalent per day

bcf billion cubic feet

$ or C$ Canadian dollar

US$ United States dollar

TT$ Trinidad & Tobago dollar

$M thousand dollars

$MM million dollars

Brent The reference price paid for crude oil FOB North Sea

1P Proved reserves

2P Proved plus probable reserves

Ha Hectare

LOA Lease Operator Agreement

FOA Farmout Agreement

IP30 Average initial production in the first 30 days of well production

AIM AIM market of the London Stock Exchange plc

TSX Toronto Stock Exchange

Corporate Information

Head Office

Suite 4100, 350 7th Ave SWCalgary, AB T2P 3N9

Office: (403) 750-4400Website: www.touchstoneexploration.com Fax: (403) [email protected]

Trinidad Office

Touchstone Exploration (Trinidad) Ltd.#30 Forest Reserve Road

Fyzabad, Trinidad

Office: (868) 677-7411

Contacts

Paul R. BaayPresident and Chief Executive [email protected](403) 750-4488

Scott BudauChief Financial [email protected](403) 750-4445

James ShipkaChief Operating [email protected](403) 750-4455

Year End: Dec 31

Engineers: GLJ Petroleum Consultants Ltd.

Auditors: Ernst & Young LLP

Legal: Norton Rose Fulbright LLPNunez & Co.

Transfer Agent: Computershare Trust Company of Canada

TSX: TX

P24

APPENDIX: Ortoire Prospect Evaluation Summary 25

APPENDIX

From the GLJ Petroleum Consultants Ltd. Prospect Evaluationof the Ortoire Exploration Block

January 16, 2019(Please also see “Advisories: Contingent and Prospect Resources”)

Ortoire Prospect Evaluation Summary – Unrisked Case 26

Light & Conventional

Medium Oil Natural Gas Natural Gas Liquids Oil Equivalent

Company Company Company Company

Gross Lease Working Gross Lease Working Gross Lease Working Gross Lease Working

Interest (80%) Interest (80%) Interest (80%) Interest (80%)

Mbbl MMcf Mbbl Mboe

Contingent Resources

Low Estimate - Pending

Corosan Prospects - - 8,190 6,552 109 87 1,474 1,179

Ortoire Central Prospect - - - - - - - -

Ortoire West Prospects 495 396 - - - - 495 396

Total: Low Estimate - Pending 495 396 8,190 6,552 109 87 1,969 1,575

Best Estimate - Pending



Ortoire West Prospects 1,180 944 - - - - 1,180 944

Total: Best Estimate - Pending 1,180 944 13,230 10,584 368 294 3,753 3,002

High Estimate - Pending



Ortoire West Prospects 2,737 2,190 - - 2,737 2,190

Total: High Estimate - Pending 2,737 2,190 20,160 16,128 874 699 6,970 5,576

Prospective Resources Low Estimate - Prospect

Corosan Prospects - - 1,890 1,512 25 20 340 272

Ortoire Central Prospect - - 16,596 13,277 406 325 3,172 2,537

Ortoire West Prospects 1,980 1,584 - - - - 1,980 1,584

Total: Low Estimate - Prospect 1,980 1,584 18,486 14,789 431 345 5,493 4,394

Best Estimate - Prospect


Ortoire Central Prospect - - 72,685 58,147 2,100 1,680 14,214 11,371


Total: Best Estimate - Prospect 7,800 6,240 80,334 64,267 2,313 1,850 23,501 18,801

High Estimate - Prospect

Corosan Prospects - - 24,570 19,656 1,065 852 5,160 4,128



Total: High Estimate - Prospect 23,460 18,768 212,949 170,359 7,554 6,043 66,505 53,204

Summary Of Oil And Gas Unrisked Resources

Before Income Tax Discounted Present Value (M$)

0% Discount Rate 5% Discount Rate 10% Discount Rate 15% Discount Rate 20% Discount Rate

(Undiscounted NPV) (NPV5) (NPV10) (NPV15) (NPV20)



Corosan Prospects 14,134$ 11,579$ 9,618$ 8,084$ 6,863$

Ortoire Central Prospect -$ -$ -$ -$ -$

Ortoire West Prospects 5,480$ 2,773$ 967$ 267-$ 1,127-$

Total: Low Estimate - Pending 19,615$ 14,352$ 10,585$ 7,817$ 5,736$




Ortoire West Prospects 26,548$ 17,276$ 11,411$ 7,526$ 4,855$

Total: Best Estimate - Pending 61,287$ 45,901$ 35,434$ 28,001$ 22,540$





Total: High Estimate - Pending 158,627$ 114,309$ 86,860$ 68,452$ 55,405$


Corosan Prospects 379-$ 500-$ 588-$ 651-$ 694-$

Ortoire Central Prospect 39,816$ 26,479$ 18,228$ 12,889$ 9,310$


Total: Low Estimate - Prospect 74,045$ 48,020$ 31,410$ 20,421$ 12,940$





Total: Best Estimate - Prospect 487,947$ 319,851$ 219,666$ 156,236$ 114,176$





Total: High Estimate - Prospect 1,712,406$ 1,009,326$ 649,688$ 443,369$ 315,803$

Summary Of Oil And Gas Net Present Values (Unrisked)(1)(2)(3)(4)(5)(6)(7)(8)(9)(10) (1)(2)(3)(4)(5)(6)(7)(8)(9)(10)

Ortoire Prospect Evaluation Summary – Assigned Risk Factors 27

Summary Of Assigned Risk Factors

Chance of Development Chance of Discovery Chance of Commerciality

% % %

Contingent Resources - All Estimates (Low, Medium, and High)

Corosan Prospects 95 100 95

Ortoire Central Prospect - - -

Ortoire West Prospects 95 100 95



Ortoire Central Prospect 95 36 34










Resources Category

(2)(3)(4)(5)(6)(7)(8)(9)(10)

Ortoire Prospect Evaluation Summary – Risked Case 28

Light & Conventional

Medium Oil Natural Gas Natural Gas Liquids Oil Equivalent

Company Company Company Company

Gross Lease Working Gross Lease Working Gross Lease Working Gross Lease Working

Interest (80%) Interest (80%) Interest (80%) Interest (80%)

Mbbl MMcf Mbbl Mboe






Total: Low Estimate - Pending 470 376 7,780 6,224 104 83 1,871 1,497




Ortoire West Prospects 1,121 897 - - - - 1,121 897

Total: Best Estimate - Pending 1,121 897 12,569 10,055 349 279 3,565 2,852




Ortoire West Prospects 2,600 2,080 - - 2,600 2,080

Total: High Estimate - Pending 2,600 2,080 19,152 15,322 830 664 6,623 5,298


Corosan Prospects - - 575 460 8 6 103 83

Ortoire Central Prospect - - 5,676 4,541 139 111 1,085 868


Total: Low Estimate - Prospect 677 542 6,251 5,001 147 117 1,865 1,492


Corosan Prospects - - 2,326 1,860 65 52 452 362

Ortoire Central Prospect - - 24,858 19,886 718 574 4,861 3,889


Total: Best Estimate - Prospect 2,668 2,134 27,184 21,746 783 626 7,981 6,385





Total: High Estimate - Prospect 8,023 6,419 71,895 57,515 2,543 2,034 22,549 18,039

Summary Of Oil And Gas Risked Resources

Before Income Tax Discounted Present Value (M$)

0% Discount Rate 5% Discount Rate 10% Discount Rate 15% Discount Rate 20% Discount Rate

(Undiscounted NPV) (NPV5) (NPV10) (NPV15) (NPV20)





Ortoire West Prospects 5,206$ 2,635$ 919$ 254-$ 1,071-$

Total: Low Estimate - Pending 18,634$ 13,634$ 10,056$ 7,426$ 5,449$





Total: Best Estimate - Pending 58,223$ 43,606$ 33,662$ 26,601$ 21,413$





Total: High Estimate - Pending 150,696$ 108,593$ 82,517$ 65,029$ 52,635$


Corosan Prospects 115-$ 152-$ 179-$ 198-$ 211-$



Total: Low Estimate - Prospect 25,338$ 16,442$ 10,765$ 7,009$ 4,452$





Total: Best Estimate - Prospect 166,192$ 108,826$ 74,656$ 53,036$ 38,709$





Total: High Estimate - Prospect 582,224$ 342,549$ 220,087$ 149,907$ 106,562$

Summary Of Oil And Gas Net Present Values (Risked)(1)(2)(3)(4)(5)(6)(7)(8)(9)(10) (1)(2)(3)(4)(5)(6)(7)(8)(9)(10)

Ortoire Prospect Evaluation Summary – Pricing Assumptions 29

Summary of Pricing, Inflation and Foreign Exchange Assumptions With respect to both Contingent Resources and Prospective Resources, the following table sets forth the benchmark reference prices, inflation and foreign exchange rates reflected in the Prospect Evaluation.

Forecast Year Henry Hub

(US$/MMBtul)(11)

Brent Blend FOB North Sea

(US$/bbl)(11)

Inflation Rate (%/year)(12)

US$/C$ Exchange

Rate(13)

2019 3.00 63.25 2.0 0.75 2020 3.17 68.50 2.0 0.77 2021 3.36 71.25 2.0 0.79 2022 3.51 73.00 2.0 0.81 2023 3.64 75.50 2.0 0.82 2024 3.71 78.00 2.0 0.83 2025 3.78 80.50 2.0 0.83 2026 3.86 83.41 2.0 0.83 2027 3.94 85.02 2.0 0.83 2028 4.00 86.66 2.0 0.83 Thereafter % change per year 2.0% 2.0% Nil Nil

Ortoire Prospect Evaluation Summary – Footnotes 30

Resource Definitions

• "Chance of Commerciality" is the arithmetic product of the Chance of Discovery and the Chance of Development.

• "Chance of Discovery" is the estimated probability that exploration activities will confirm the existence of a significant accumulation of potentially recoverable petroleum.

• "Chance of Development" is the estimated probability that, once discovered, a known accumulation will be commercially developed.

• "Contingent Resources" are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology underdevelopment, but which are not currently considered to be commercially recoverable due to one or more contingencies.

• "Prospective Resources" are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects.Prospective Resources have both an associated chance of discovery and a chance of development.

Footnotes

(1) Touchstone's working interest in the Ortoire block (exploration licences and production leases) is 80%.(2) The low estimate is the P90 quantity. P90 means there is a 90% chance that the estimated quantity will be equaled or exceeded.(3) The best estimate is the P50 quantity. P50 means there is a 50% chance that the estimated quantity will be equaled or exceeded.(4) The high estimate is the P10 quantity. P10 means there is a 10% chance that the estimated quantity will be equaled or exceeded.(5) The totals are the arithmetic summation of probabilistic estimates. Arithmetic summation may produce invalid results except for the mean.(6) Contingent Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under

development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Contingencies may include factors such as economic, legal, environmental,political, and regulatory matters, or a lack of markets. It is also appropriate to classify as Contingent Resources the estimated discovered recoverable quantities associated with a project in the earlyevaluation stage. Contingent Resources are further classified in accordance with the level of certainty associated with the estimates and may be subclassified based on project maturity and/orcharacterized by their economic status. There is uncertainty that it will be commercially viable to produce any portion of the Contingent Resources.

(7) Prospective Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects.Prospective Resources have both an associated Chance of Discovery and a Chance of Development. Prospective Resources are further subdivided in accordance with the level of certainty associated withrecoverable estimates assuming their discovery and development and may be subclassified based on project maturity.Prospective Resources have both an associated Chance of Discovery and a Chance of Development. There is no certainty that any portion of the prospective resources estimated herein will be discovered.If discovered, there is no certainty that it will be commercially viable to produce any portion of the Prospective Resources evaluated. Estimates of the Prospective Resources should be regarded only asestimates that may change as additional information becomes available. Not only are such Prospective Resources estimates based on that information which is currently available, but such estimates arealso subject to uncertainties inherent in the application of judgmental factors in interpreting such information. Prospective Resources should not be confused with those quantities that are associated withContingent Resources or reserves due to the additional risks involved. Because of the uncertainty of commerciality and the lack of sufficient exploration drilling, the Prospective Resources estimatedherein cannot be classified as Contingent Resources or reserves. The quantities that might actually be recovered, should they be discovered and developed, may differ significantly from the estimatesherein.

(8) The Contingent Resource and Prospective Resource estimates contained in the Prospect Evaluation are expressed as gross working interest resources. Working interest Contingent Resources andProspective Resources incorporate the fraction of potential hydrocarbon pore volume which would be owned or partially owned by Touchstone, before deduction of any associated royalty burdens,following a declaration of commerciality. Recovery efficiency is applied to the Recoverable Volumes noted.

(9) The estimation of resources quantities for a prospect is subject to both technical and commercial uncertainties and, in general, may be quoted as a range. The range of uncertainty reflects a reasonablerange of estimated potentially recoverable quantities. Estimates of petroleum resources herein are expressed using the terms low estimate, best estimate, and high estimate to reflect the range ofuncertainty.

(10) Barrel of oil equivalent includes technical conversions to standardize recoverable volumes of oil, natural (residue) gas, and natural gas liquids. A BOE conversion ratio of 6 mcf: 1 bbl is based on an energyequivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil ascompared to natural gas is significantly different than the energy equivalency of 6:1, utilizing a 6:1 conversion basis may be misleading as an indication of value.

(11) The summary table identifies benchmark reference pricing schedules that might apply to a reporting issuer. Product sales prices will reflect these reference prices with further adjustments for qualitydifferentials and transportation to point of sale.

(12) Inflation rates for forecasting pricing and costs.(13) Exchange rates used to generate the benchmark reference prices in this table.

Endnotes and Advisories 31

ENDNOTES & ADVISORIES

Endnotes 32

Slide 3 – Calgary Based E&P Operating in Trinidad (1) Average estimated field production from January 1, 2019 to January 13, 2019.(2) Market capitalization was calculated using 129,021,428 outstanding shares (basic) and the January 15, 2019 TSX closing price of $0.23 per

common share.

Slide 4 – Business Strategy (1) Drilling locations are based on December 31, 2017 GLJ Petroleum Consultants Ltd. independent reserves evaluation and internal estimates.

See “Advisories: Drilling Locations”.

Slide 5 – Q3 2018 Financial Position(1) Market capitalization was calculated using the TSX closing price on December 30, 2016 ($0.145/share), December 29, 2017 ($0.225/share)

and September 28, 2018 ($0.295/share) multiplied by our basic common shares outstanding.(2) Sept. 30, 2018 Dec. 31, 2017 Dec. 31, 2016

Current assets 21,549,000 23,107,000 17,735,000Less: current liabilities 19,524,000 16,299,000 16,889,000Working capital 2,025,000 6,808,000 846,000

(3) Non-GAAP measure. Refer to “Advisories: Non-GAAP Measures”.(4) S

(5) .

($000’s) Sept 30, 2018 Dec. 31, 2017 Dec. 31, 2016

Current assetsCurrent liabilities

(21,549)19,524

(23,107)16,299

(17,735)16,889

Principal long-term portion of term loan 15,000 15,000 15,000

Net Debt 12,975 8,192 14,154

($000’s unless otherwise indicated)

Three months ended Sept 30, 2018

Three months ended Sept 30, 2017

Nine months ended Sept 30, 2018

Nine months ended Sept 30, 2017

Petroleum revenue 12,890 7,885 35,782 22,712Royalties (3,319) (1,929) (9,805) (6,297)Operating expenses (3,567) (2,722) (9,349) (8,043)Operating netback 6,004 3,234 16,628 8,372

Production (bbls) 161,716 132,199 456,889 368,794Operating netback ($/bbl) 37.13 24.46 36.40 22.70

Endnotes 33

Slide 7 – Trinidad(1) Source: Petroleum Company of Trinidad and Tobago Limited and Government of Trinidad and Tobago, Ministry of Energy and Energy

Industries.(2) Source: BP Statistical Review of Energy, June 2018.(3) Source: International Gas Union: 2017 World LNG Report.

Slide 8 – Land Position(1) Drilling locations are based on December 31, 2017 GLJ Petroleum Consultants Ltd. independent reserves evaluation and internal estimates.

See “Advisories: Drilling Locations”.

Slide 10 – New Well Economics(1) Realized price is equal to Brent less a 16% discount.(2) Based on US$1,050,000 new well capital cost and US$14.00 operating costs per barrel.(3) Constant oil rate (0% decline).

Slide 12 – Onshore Drilling Activity in Trinidad(1) Source: Government of the Republic of Trinidad and Tobago, Ministry of Energy and Energy Industries, Consolidated Monthly Bulletins,

January – October 31, 2018, Volume 55 No. 10.(2) Includes wells drilled through December 31, 2018. It does not include two wells drilled as part of a water disposal program at Fyzabad.

Slide 18 - Corosan West Prospect – Independent Prospect Evaluation(1) Based on the independent prospect evaluation review prepared by GLJ Petroleum Consultants Ltd. dated January 16, 2019. See

“Advisories: Contingent and Prospect Resources”.(2) Boes include technical conversions to standardize recoverable volumes of oil, natural (residue) gas, and natural gas liquids.

Slide 20 – Balata West Prospects – Independent Volumetric Estimates(1) Based on the independent prospect evaluation review prepared by GLJ Petroleum Consultants Ltd. dated January 16, 2019. See

“Advisories: Contingent and Prospect Resources”.(2) Boes include technical conversions to standardize recoverable volumes of oil, natural (residue) gas, and natural gas liquids.

Endnotes 34

Slide 22 – Ortoire Central Prospect – Seismic Profile(1) Based on the independent prospect evaluation review prepared by GLJ Petroleum Consultants Ltd. dated January 16, 2019. See “Advisories:

Contingent and Prospect Resources”.(2) Boes include technical conversions to standardize recoverable volumes of oil, natural (residue) gas, and natural gas liquids.

Slide 26 – Why Touchstone?(1) Based on December 31, 2017 GLJ Petroleum Consultants Ltd. independent reserves evaluation. See “Advisories: Oil and Gas Reserves”.(2) Average estimated field production from January 1, 2019 to January 13, 2019.(3) See endnotes from Slide 5 – “Q3 2018 Financial Position”.

Advisories 35

Advisories

This presentation is for information purposes only and is not, and under no circumstances is to be construed as a prospectus or an advertisement for a publicoffering of such securities. No securities commission or similar authority in Canada or elsewhere or the Toronto Stock Exchange has in any way passed upon thispresentation, or the merits of any securities of Touchstone Exploration Inc. (“Touchstone” or the “Company”) and any representation to the contrary is an offence.An investment in Touchstone Exploration Inc.’s securities should be considered highly speculative due to the nature of the proposed involvement in the explorationfor and production of oil and natural gas.

This presentation and the information contained herein does not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States. Thesecurities of Touchstone Exploration Inc. have not been registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or anystate securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable statesecurities laws or an exemption from such registration is available.

Business Risks

The Company is exposed to numerous operational, technical, financial and regulatory risks and uncertainties, many of which are beyond its control and maysignificantly affect anticipated future results. The Company is exposed to risks associated with negotiating with foreign governments as well as country riskassociated with conducting international activities. Operations may be unsuccessful or delayed as a result of competition for services, supplies and equipment,mechanical and technical difficulties, ability to attract and retain qualified employees on a cost-effective basis, commodity and marketing risk. The Company issubject to significant drilling risks and uncertainties including the ability to find oil reserves on an economic basis and the potential for technical problems that couldlead to well blow-outs and environmental damage. The Company is exposed to risks relating to the inability to obtain timely regulatory approvals, surface access,access to third party gathering and processing facilities, transportation and other third party related operation risks. The Company is subject to industry conditionsincluding 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 reserve base due to the complexities in estimated future production, costs and timing of expenses and futurecapital. The Company is subject to the risk that it will not be able to fulfill the contractual obligations required to retain its rights to explore, develop and exploit anyof its properties. The financial risks the Company is exposed to include, but are not limited to, the impact of general economic conditions in Canada and Trinidad,continued volatility in market prices for oil, the impact of significant declines in market prices for oil, the ability to access sufficient capital from internal and externalsources, changes in income tax laws or changes in tax laws, royalties and incentive programs relating to the oil and gas industry, fluctuations in interest rates, theCanadian dollar to United States dollar exchange rate and the Canadian dollar to Trinidad and Tobago dollar exchange rate. The Company is subject to localregulatory legislation, the compliance with which may require significant expenditures and non-compliance with which may result in fines, penalties or productionrestrictions or the termination of license, lease operating or farm-in rights related to the Company’s oil and gas interests in Trinidad. Certain of these risks are set outin more detail in the Company’s Annual Information Form dated March 26, 2018 which has been filed on SEDAR and can be accessed at www.sedar.com.

Advisories 36

Oil and Gas Reserves

The reserves information summarized in this presentation are from the Company’s December 31, 2017 independent reserve report prepared by Touchstone’sindependent reserves evaluator, GLJ Petroleum Consultants Ltd. (“GLJ”), dated March 7, 2018. This report was prepared in accordance with definitions, standardsand procedures contained in the Canadian Oil and Gas Evaluation Handbook (“COGEH”) and National Instrument 51-101 - Standards of Disclosure for Oil and GasActivities (“NI 51-101”). All December 31, 2017 reserves presented are based on GLJ’s forecast pricing dated January 1, 2018 and estimated costs effective December31, 2017. Additional reserves information as required under NI 51-101 are included in the Company’s Annual Information Form dated March 26, 2018.

Contingent and Prospect Resources

The contingent and prospective resources information contained in this presentation are from an independent review of the Company's Ortoire exploration blockprepared by GLJ dated January 16, 2019. The independent prospect evaluation was prepared in accordance with definitions, standards and procedures contained inCOGEH and NI 51-101. Both contingent resources and prospective resources have risks associated with chance of commerciality, which is defined as the product ofchance of development and chance of discovery. Contingent resources are defined as discovered resources, due to historical production or testing, thereby carryingno discovery risk. Contingent resources will have risks associated with chance of development only. Prospective resources are defined as undiscovered resources,with risks associated with both chance of development and chance of discovery.

In all instances, net present values contained herein was calculated as at December 31, 2018 using GLJ's pricing forecasts dated January 1, 2019 and is net ofestimated future royalties, development and operating costs required to fully develop each prospect and recover all recoverable volumes, and abandonment andreclamation costs. Operating costs are based on the Company's current structure and take in to account premiums related to bringing new volumes on stream overtime.

An estimate of risked net present values of future net revenue of contingent resources and prospective resources is preliminary in nature and is provided to assistthe reader in reaching an opinion on the merit and likelihood of the Company proceeding with the required investment. It includes contingent resources andprospective resources that are considered too uncertain with respect to the chance of development and chance of discovery to be classified as reserves. There isuncertainty that the risked net present value of future net revenue will be realized.

The prospect evaluation was performed to provide the Company with an independent assessment of the Ortoire exploration block opportunities and to assist inquantifying individual prospects. At this time, GLJ and the Company have not included the contingent resources and prospective resources identified in the prospectevaluation in Touchstone's Reserves Report as the exploration license governing the Ortoire block requires the Company to first declare commerciality of anydiscovery prior to economic production.

The estimation of resources quantities for a prospect is subject to both technical and commercial uncertainties and, in general, may be quoted as a range. The rangeof uncertainty reflects a reasonable range of estimated potentially recoverable quantities. Estimates of petroleum resources herein are expressed using the termslow estimate, best estimate, and high estimate to reflect the range of uncertainty. The low estimate in the report is the P90 quantity. P90 means there is a 90%chance that the estimated quantity will be equaled or exceeded. The best estimate is the P50 quantity, which means there is a 50% chance that the estimatedquantity will be equaled or exceeded. The high estimate is the P10 quantity, which means there is a 10 % chance that the estimated quantity will be equaled orexceeded.

Advisories 37

Contingent and Prospect Resources (Continued)

Contingent resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using establishedtechnology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies.Contingencies may include factors such as economic, legal, environmental, political, and regulatory matters, or a lack of markets. It is also appropriate to classify ascontingent resources the estimated discovered recoverable quantities associated with a project in the early evaluation stage. Contingent resources are furtherclassified in accordance with the level of certainty associated with the estimates and may be subclassified based on project maturity and/or characterized by theireconomic status. There is uncertainty that it will be commercially viable to produce any portion of the contingent resources.

Prospective resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by applicationof future development projects. Prospective resources have both an associated chance of discovery and a chance of development. Prospective resources are furthersubdivided in accordance with the level of certainty associated with recoverable estimates assuming their discovery and development and may be subclassifiedbased on project maturity.

Prospective resources have both an associated chance of discovery and a chance of development. There is no certainty that any portion of the prospective resourcesestimated herein will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the prospective resourcesevaluated. Estimates of the prospective resources should be regarded only as estimates that may change as additional information becomes available. Not only aresuch prospective resources estimates based on that information which is currently available, but such estimates are also subject to uncertainties inherent in theapplication of judgmental factors in interpreting such information. Prospective resources should not be confused with those quantities that are associated withcontingent resources or reserves due to the additional risks involved. Because of the uncertainty of commerciality and the lack of sufficient exploration drilling, theprospective resources estimated herein cannot be classified as contingent resources or reserves. The quantities that might actually be recovered, should they bediscovered and developed, may differ significantly from the estimates herein.

Oil and Gas Metrics

This presentation may contain certain oil and gas metrics that are commonly used in the oil and gas industry such as finding and development costs, reservesadditions, reserve replacement ratio, reserve life index and recycle ratio. These metrics do not have standardized meanings or standardized methods of calculationand therefore such measures may not be comparable to similar measures presented by other companies. Such metrics have been included herein to provide readerswith additional metrics to evaluate the Company’s performance; however, such measures are not reliable indicators of the future performance of the Company, andfuture performance may not compare to the performance in prior periods and therefore such metrics should not be unduly relied upon. The Company uses these oiland gas metrics for its own performance measurements and to provide shareholders with measures to compare the Company’s operations over time. Readers arecautioned that the information provided by these metrics, or that can be derived from the metrics presented in this presentation, should not be relied upon forinvestment purposes.

Finding and development costs are the sum of capital expenditures excluding capitalized general and administrative costs and corporate capital expendituresincurred in the period and the change in future development costs required to develop those reserves. Finding and development costs per barrel is determined bydividing current period net reserve additions to the corresponding period’s finding and development cost. The aggregate of the exploration and development costsincurred in the most recent financial year and the change during that year in estimated future development costs generally will not reflect total finding anddevelopment costs related to reserves additions for that year.

Advisories 38

Oil and Gas Metrics (Continued)

Net reserve additions are calculated as the change in reserves from the beginning to the end of the applicable period excluding period production.

Reserves replacement ratio is calculated as period net reserve additions divided by period production.

Reserve life index is calculated as total Company gross reserves divided by annual production.

Recycle ratios are calculated by dividing the current period finding and development costs per barrel to operating netbacks before hedging in the correspondingperiod (see “Non-GAAP Measures”). The recycle ratio compares netbacks from existing reserves to the cost of finding new reserves and may not accurately indicatethe investment success unless the replacement of reserves are of equivalent quality as the produced reserves.

Drilling Locations

This presentation discloses total drilling locations. Drilling locations are classified into three categories: (i) proved locations; (ii) probable locations; and (iii) unbookedlocations. Proved locations and probable locations are derived from the Company's reserves evaluation of GLJ Petroleum Consultants Ltd. effective December 31,2017 and account for locations that have associated proved and/or probable reserves, as applicable. Unbooked locations are internal estimates based on theprospective acreage associated with the Company’s assets and an assumption as to the number of wells that can be drilled based on industry practice and internalreview. Unbooked locations do not have attributed reserves. Of the approximately 208 (net) drilling locations identified herein, 62 are proved locations, 28 areprobable locations and the remaining are unbooked locations. Unbooked locations have been identified by Management as an estimation of potential multi-yeardrilling activities based on evaluation of applicable geologic, seismic, engineering, production and reserves information. There is no certainty that the Company willdrill all unbooked drilling locations and if drilled there is no certainty that such locations will result in additional oil and gas reserves or production. The locations onwhich the Company will drill wells will ultimately depend upon the availability of capital, regulatory approvals, crude oil prices, costs, actual drilling results, additionalreservoir information that can be obtained and other factors. While certain of the unbooked drilling locations have been de-risked by drilling existing wells in relativeclose proximity to such unbooked drilling locations, other unbooked drilling locations are farther away from existing wells where Management has less informationabout the characteristics of the reservoir and therefore there is more uncertainty whether wells will be drilled in such locations and if drilled there is moreuncertainty that such wells will result in additional oil and gas reserves or production.

Non-GAAP Measures

This presentation may contain terms commonly used in the oil and natural gas industry, such as funds flow from operations per share, operating netback and netdebt. These terms do not have a standardized meaning under International Financial Reporting Standards (“IFRS”) and may not be comparable to similar measurespresented by other companies. Shareholders and investors are cautioned that these measures should not be construed as alternatives to cash provided by operatingactivities, net income, total liabilities, or other measures of financial performance as determined in accordance with GAAP. Management uses these non-GAAPmeasures for its own performance measurement and to provide stakeholders with measures to compare the Company’s operations over time.

The Company calculates funds flow from operations per share by dividing funds flow from operations by the weighted average number of common sharesoutstanding during the applicable period.

Advisories 39

Non-GAAP Measures (Continued)

The Company uses operating netback as a key performance indicator of field results. Operating netback is presented on an absolute and per barrel basis and iscalculated by deducting royalties and operating expenses from petroleum sales. If applicable, the Company also discloses operating netback both prior to realizedgains or losses on derivatives and after the impacts of derivatives are included. Realized gains or losses represent the portion of risk management contracts that havesettled in cash during the period, and disclosing this impact provides Management and investors with transparent measures that reflect how the Company’s riskmanagement program can impact netback metrics. The Company considers operating netback to be a key measure as it demonstrates Touchstone’s profitabilityrelative to current commodity prices. This measurement assists Management and investors in evaluating operating results on a per barrel basis to analyzeperformance on a historical basis.

The Company closely monitors its capital structure with a goal of maintaining a strong financial position in order to fund current operations and the future growth ofthe Company. The Company monitors working capital and net debt as part of its capital structure to assess its true debt and liquidity position and to manage capitaland liquidity risk. Net debt is calculated by summing the Company’s working capital and the principal (undiscounted) amount of long-term debt. Working capital iscalculated as current assets less current liabilities as they appear on the applicable statement of financial position.

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