corporate presentation october 2021

Corporate Presentation

October 2021

Driving growth, profitability and responsibility in the Trinidad energy

industry

1TSX : TXP | AIM : TXP

Touchstone at a Glance

TSX : TXP

AIM : TXP

Capital Structure

Common shares outstanding 210,731,727

TSX share price (C$)(1) $2.01

Market capitalization (C$)(2) $423,570,771

First Half 2021 Results

Average daily oil production (bbls/d) 1,350

Petroleum sales ($000's) $13,706

Funds flow from operations ($000's)(3) $1,743

Operating netback ($/bbl) (3)(4) $24.24

Reserves(5) 1P 2P

Reserves (MMboe) 34.2 65.0

After tax NPV10 ($MM) $163.0 $289.2

2Corporate Presentation | October 2021

Why Touchstone

3

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 Trinidad and Tobago

➢ Operate in a manner that ensures the safety of all our employees

➢ Act in the best interest of our stakeholders

Financially Disciplined

➢ Prudent management of the balance sheet

➢ Continually strive to optimize netbacks

➢ Targeting significant growth in our funds flow

Corporate Presentation | October 2021

About Trinidad

4

Largest producer of oil and natural gas in the

Caribbean(6)9th largest LNG supplier

worldwide(7)

Energy-intensive industries such as ammonia, methanol,

fertilizers, and aluminiumMethanol Holdings, Nutrien, Nitrogen,

Cantrex Limited

About TrinidadAccess to world class

facilitiesHouse one of the largest natural

gas processing facilities in the Western Hemisphere(6)


GUYANA SURINAME

BASIN

EASTERN VENEZUELAN

BASIN

Hydrocarbon Rich Environment

Guyana Oil Discoveries

Surname Oil Discoveries


Trinidad Natural Gas – Supply and Consumption(8)

6

Total Trinidad Natural Gas Production

2015 Average 3.83 Bcf/d2016 Average 3.33 Bcf/d2017 Average 3.35 Bcf/d2018 Average 3.58 Bcf/d2019 Average 3.59 Bcf/d2020 Average 3.04 Bcf/d2021 Average YTD 2.74 Bcf/d

Total Natural Gas Demand~ 95% of Total Production

2015 Total Avg. 3.58 Bcf/d2016 Total Avg. 3.11 Bcf/d2017 Total Avg. 3.18 Bcf/d2018 Total Avg. 3.39 Bcf/d2019 Total Avg. 3.44 Bcf/d2020 Total Avg. 2.93 Bcf/d2021 Total Avg. YTD 2.57 Bcf/d

Domestic Natural Gas Demand ~ 45% of Total Demand

2015 Domestic Avg. 1.61 Bcf/d2016 Domestic Avg. 1.45 Bcf/d2017 Domestic Avg. 1.45 Bcf/d2018 Domestic Avg. 1.46 Bcf/d2019 Domestic Avg. 1.47 Bcf/d2020 Domestic Avg. 1.28 Bcf/d2021 Domestic Avg. YTD 1.40 Bcf/d

Production Consumption

MM

cf/d

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500Trinidad Natural Gas Production and Consumption

January 2015 - Present

Domestic (MMcf/d) LNG (MMcf/d) Production (MMcf/d) Total (MMcf/d)

Current Production c. 2.50 Bcf/d

Average Historic Domestic Consumption c. 1,449 MMcf/d

0

1,000

2,000

3,000

4,000

5,000Trinidad Gas Consumption by Group

January 2017 to Present

Power Generation Ammonia Manufacture Methanol Manufacture RefineryIron & Steel Manufacture Cement Manufacture Ammonia Derivatives Gas ProcessingSmall Consumers LNG

MM

cf/d


Touchstone Land Holdings

Core Exploration Acreage34,468 net working interest acres

Oil Pool

Gas Pool

Developed Acreage6,418 net working interest acres

N

E

S

W


Touchstone Assets

8

Cascadura

Growth Opportunities

Producing blocks ➢ Current field production is approximately 1,350 bbls/d

➢ Total proved plus probable reserves of 16,462 Mboe(5)

➢ Completing phase one of our exploration program

➢ Three exploration prospects in our phase two exploration outlook (12) (13)

➢ Krakken, Steelhead and Guabine➢ Identified an additional 20 exploration prospects (12) (13)

➢ 8 development well locations identified (12)

➢ Estimated net initial production of approximately 9,200 boe/d(9)

➢ Total proved plus probable reserves of 45,031 Mboe(5)

Coho➢ 1 development well scheduled (12)

➢ Estimated net initial production of approximately 1,333 boe/d(9)

➢ Total proved plus probable reserved of 3,454 Mboe(5)

➢ Trinidad is a hydrocarbon rich environment with opportunities for M&A

➢ Projected funds flow to deploy for business expansion

➢ Onshore bid round

Exploration


Producing Blocks

215 Drilling locations(10)

“A 20-year crude oil drilling program providing Touchstone with a strong organic growth platform.”

7 Producing fieldsH1 2021 crude oil production

of 1,350 bbls/d


10

Ortoire Operations

Navette57 MMbbls

Catshill30 MMbbls

Balata East10 MMbbls

CASCADURAFull Development

CHINOOKFull Development

COHOFull Development KRAKKEN

Cretaceous Prospect

STEELHEADKaramat Prospect

GAUBINEHerrera Prospect

Gas Discovery

Oil Discovery

Unknown Result

Gas Development Pad

Oil Development Pad

Exploration Location

HERITAGE OIL PIPELINE

ROYSTONFull Development

Cascadura-1ST1

NGC GAS PIPELINE

Baraka

Baraka

East

Carapal Ridge

COHOPlanned Pipeline


Coho

11

CohoReserves (2P)(5) 3,454 Mboe

2P before tax NPV10(5) $23.9 MM

Wells drilledCoho-1

Depth 8,560 ft.

Feet of pay(9) 105 ft.

Formation Herrera GR7b

Estimated initial production (net)(9) 1,333 boe/d

Development wells(12) 1

Exploration prospects(12) 2


Cascadura

12

Cascadura Reserves(5) 45,031 Mboe

2P before tax NPV10(5) $411.8 MM

Wells drilledCAS-1ST1

Depth 6,350 ft.

Feet of pay(9) 1,037 ft.

Lower formation - test 1 GR7c/GR7b

Upper formation - test 2 GR7bc

Estimated initial production(9) 6,133 boe/d

CAS Deep-1 Depth 8,303 ft.

Feet of pay(9) 2,100 ft.

Formation Herrera GR7abc

Estimated initial production (net)(9) 3,067 boe/d

Development wells(12) 3 - 6

Exploration prospects(12) 5


Royston-1 – Natural Gas Prospect

13

RoystonReserves None assigned

Wells drilledRoyston-1

Total depth 10,700 ft.

Feet of pay(9) 393 ft.

Formation Herrera GR7a/GR7bc

Development wells -Exploration prospects(12) 7


ROYSTON-1

BASS

STEELHEAD

Ortoire Phase Two Exploration(13)

Outlook

14

Navette57 MMbbls

Catshill30 MMbbls

Balata East10 MMbbls

STEELHEADKaramat Prospect

GUABINEHerrera Prospect

HERITAGE OIL PIPELINE

NGC GAS PIPELINE

Baraka

Baraka

East

Carapal Ridge

KRAKKENCretaceous Prospect


Reserve Growth

15

8,977 10,733 11,222 11,840

34,238

15,698 18,535 19,275

22,056

64,947

20,376 24,456 25,540

29,791

100,150

-

20,000

40,000

60,000

80,000

100,000

120,000

2016 2017 2018 2019 2020

Gross Reserves Summary(11)

(Mboe)

Proved (1P) Proved + Probable (2P) Proved + Probable + Possible (3P)

Mb

oe

1P Net reserve additions increased 189% from 2019




2021 Capital Overview

$3.8

$5.3

$2.7

First Half 2021 Second Half 2021 Exploration and seismic Exploration and seismic➢ Completed and tested Chinook -1 and Cas

Deep-1 ➢ Drill and test Royston-1

➢ Completed 22 km. 2D seismic program in Royston area

➢ Analyze and process seismic shot at Ortoire

➢ Acquired seismic on our legacy blocks

Facilities and pipelines Facilities and pipelines➢ Constructed coho facility ➢ Construct pipeline at Coho and bring the

well onto production

➢ Complete the Environmental Impact Assessment and source materials for the facility at Cascadura

Maintenance and development Maintenance and development➢ Workovers and completions ➢ Workovers and completions

➢ Drill four minimum work obligation wells on our legacy blocks


17

2022 and Beyond

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 in excess of 9,200 boe/d(9)

➢ Continue with phase two of our exploration prospects at Ortoire, including Steelhead, Krakken and Guabine (12) (13)

➢ Design and begin to drill development well locations at Cascadura(12)

➢ Drill a minimum of four development wells per year on our legacy blocks

Long term

➢ Evaluate the additional 20 exploration prospects on the Ortoire Block (12) (13)

➢ Be an industry leader on reducing greenhouse gas emissions and environmental impacts

➢ Be a leading onshore energy producer in the Caribbean

Significant growth opportunity for Touchstone and the Trinidad oil and gas industry


18

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 ourenvironmental footprint➢ One environmental incident in the last two years

➢ Leading industry's initiative to eliminate surface release of produced water

➢ Aiming to capture all solution gas from our wells and sales facilities to sell oruse in our operations

➢ Conduct business in manner that ensures the safety of allstakeholders➢ YTD 2021 lost time recordable incident frequency of nil

➢ Work to enhance the local communities involved in our dailyoperations➢ Donated over 380 food hampers in local communities since the onset of

COVID-19

➢ Close affiliation with local charities and schools


19

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

➢ Experienced Management and Board ➢ Decades of experience in delivering shareholder value through transforming small exploration and production companies

➢ Strong capital discipline➢ Stable balance sheet and positive cashflow

➢ Respected relationships with key stakeholders➢ Support from the Trinidad government, The National Gas Company of Trinidad and Tobago, and good relations with local

communities


Driving growth, profitability and responsibility in the Trinidad energy

industry

20TSX : TXP | AIM : TXP

Abbreviations

bbl(s) barrel(s)

bbls/d barrels per day

Mbbls thousand barrels

MMbbls million barrels

Mcf thousand cubic feet

Mcf/d thousand cubic feet per day

MMcf million cubic feet

MMcf/d million cubic feet per day

Bcf billion cubic feet

Bcf/s Billion cubic feet per day

MMBtu million British Thermal Units

boe barrels of oil equivalent

boe/d barrels of oil equivalent per day

Mboe thousand barrels of oil equivalent

MMboe million barrels of oil equivalent

AIM AIM market of the London Stock Exchange plc

AOF Absolute open flow rate

Brent Dated Brent

LOA Lease Operator Agreement

NGLs Natural gas liquids

SPT Supplemental Petroleum Tax

TSX Toronto Stock Exchange

$ or US$ United States dollars

$MM million dollars

Year End: December 31

Engineers: GLJ Ltd.

Auditors: KPMG LLP

Legal: Norton Rose Fulbright LLPNunez & Co.

Transfer Agent: Odyssey Trust Company

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


1) Touchstone’s October 1, 2021 closing share price on the TSX.

2) Calculated as the product of the Company’s TSX common share closing price on October 1, 2021 (C$2.01/share) and 210,731,727 common shares outstanding.

3) Non-GAAP measure. Refer to "Advisories: Non-GAAP Measures".

4) .

5) Based on December 31, 2020 GLJ Ltd. independent reserves evaluations. See "Advisories: Oil and Gas Reserves".

6) Source: Ministry of Energy and Energy Affairs, Oil and Gas Industry Overview.

7) Source: BP Statistical Review of World Energy 2021.

8) Source: Ministry of Energy and Energy Industries Publications: https:www.energy.gov.tt/publications/

9) Coho-1, CAS-1ST1, CAS Deep-1 and Royston-1 feet of pay and estimated initial net production are based off drilling and production test results. Actual results may differ from estimates, and such variances may be material. See "Advisories: Forward-looking Statements" and "Advisories: Oil and Gas Drilling and Test Results".

22

End Notes

Operating Netback Six months ended June 30, 2021($000’s unless otherwise indicated)

Petroleum revenue 13,706Royalties (4,153)Operating expenses (3,610)Operating netback 5,943

Total production (bbls) 245,175Operating netback ($/bbl) 24.24


10) Development drilling locations are based on December 31, 2020 GLJ Ltd. independent reserves evaluation and internal estimates. See "Advisories: Drilling Locations".

11) Based on December 31, 2016 , December 31, 2017 , December 31, 2018, December 31, 2019 and December 31, 2020 GLJ Ltd. independent reserves evaluations. See "Advisories: Oil and Gas Reserves" and "Advisories: Oil and Gas Metrics".

12) Ortoire development and exploration drilling locations are solely based on current internal estimates. See "Advisories: Drilling Locations".

13) Ortoire phase two exploration is subject to an extension of the Company’s Ortoire exploration and production licence. See "Advisories: Forward-Looking Statements".

23

End Notes


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 Touchstone Exploration Inc. ("Touchstone", "we", "our", "us", or the "Company") set forth in this presentation may constitute forward-looking statements and information (collectively, "forward-looking statements") within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified bythe 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.Forward-looking statements in this presentation include, but are not limited to, those in respect of the Company’s exploration, development and production opportunities and activities, including anticipated drilling, timing,production testing, development, tie-in, facilities construction, and ultimate production and production rates from exploration and development wells; the quality and quantity of prospective hydrocarbon accumulations based onwireline logs, including the Company's interpretations thereof; field estimated production rates; the Company's expectation of future funds flow and capital expenditures; the Company's future Ortoire exploration activities and theexpectation of an Ortoire licence extension; the extent to which local communities will benefit from the Company's operations; the sufficiency of resources and available financing to fund future capital expenditures and maintainfinancial liquidity; and general business strategies and objectives. Statements relating to “reserves” and “resources” are deemed to be forward-looking statements, as they involve the implied assessment, based on certainestimates and assumptions, that the reserves and resources described exist in the quantities predicted or estimated and can be profitably produced in the future. The Company has a reasonable basis for disclosing suchstatements, which represent the Company’s internal projections, estimates or beliefs concerning future growth, and results of operations.

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 associatedoperational plans (including drilling, testing, facilities construction and recompletion programs) and the anticipated costs and timing thereof; estimated oil and gas reserves (including the magnitude, ability to recover,commerciality and net present value thereof); production rates and production decline rates; net feet of pay based on internal estimates of wireline logs; the success of exploration opportunities; plans for and results of productiontesting; the ability to secure necessary personnel, equipment, production licences, regulatory approvals and services; environmental matters; future commodity prices; changes to prevailing regulatory, royalty, tax andenvironmental laws and regulations; the impact of competition, future capital and other expenditures (including the amount, nature and sources of funding thereof); future financing sources; and business prospects andopportunities; and the impact the COVID-19 pandemic will have on the Company’s future operations and future petroleum pricing, among other things.

Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number offactors and risks. 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 of each such factor on Touchstone’s business or the extent to whichany factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Although the Company believes that the expectations and assumptions on which theforward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Some of the risks thatcould affect the Company's future results and could cause results to differ materially from those expressed in the forward-looking information are described under the heading "Advisories: Business Risks" in this presentation andare also set out in more detail in the Company's 2020 Annual Information Form dated March 25, 2021 which has been filed on SEDAR and can be accessed at www.sedar.com.

24

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, andTouchstone undertakes no obligation to update any forward-looking statements or information except as required by law, including securities laws. All forward-looking statements and information contained in this presentationare qualified by such cautionary statements.

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 inCanada or elsewhere or the Toronto Stock Exchange has in any way passed upon this presentation, or the merits of any securities of Touchstone Exploration Inc., and any representation to the contrary is an offence. An investmentin Touchstone Exploration Inc.’s securities should be considered highly speculative due to the nature of the proposed involvement in the exploration for and production of oil and natural gas.

This presentation and the information contained herein do not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States. The securities of Touchstone Exploration Inc. have not been registeredunder the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state 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 state securities 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 may significantly affect anticipated future results. The Company is exposed torisks associated with negotiating with foreign governments as well as country risk associated with conducting international activities. Operations may be unsuccessful or delayed as a result of competition for services, supplies andequipment, mechanical and technical difficulties, ability to attract and retain qualified employees on a cost-effective basis, commodity and marketing risk. The Company is subject to significant drilling risks and uncertaintiesincluding the ability to find oil and gas reserves on an economic basis and the potential for technical problems that could lead to well blow-outs and environmental damage. The Company is exposed to risks relating to the inabilityto 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 conditions includingchanges 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 and resourcebase due to the complexities in estimated future production, costs and timing of expenses and future capital. The Company is subject to the risk that it will not be able to fulfill the contractual obligations required to retain its rightsto explore, develop and exploit any of its properties. The financial risks the Company is exposed to include, but are not limited to, the impact of general economic conditions in Canada, the United Kingdom and Trinidad, continuedvolatility in market prices for oil and gas, the impact of significant declines in market prices for oil and gas, the ability to access sufficient capital from internal and external sources, changes in income tax laws, royalties andincentive programs relating to the oil and gas industry, fluctuations in interest rates, the C$ to US$ exchange rate and the US$ to TT$ exchange rate. The Company is subject to local regulatory legislation, the compliance with whichmay require significant expenditures and non-compliance with which may result in fines, penalties or production restrictions or the termination of licence, LOA or farm-in rights related to the Company’s oil and gas interests inTrinidad. Certain of these risks are set out in more detail in the Company’s 2020 Annual Information Form dated March 25, 2021 which has been filed on SEDAR and can be accessed at www.sedar.com.

25

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 governmentsworldwide which has had an effect in all of the Company's operating jurisdictions. The actions taken in 2020 and 2021 by various governments have typically included but have not been limited to travel bans, mandatory and self-imposed quarantines and isolations, physical distancing, and the closing of non-essential businesses which has had significant negative effects on economies, including a substantial decline in crude oil demand. Additionally, suchactions resulted in volatility and disruptions in regular business operations, supply chains and financial markets as well as declining trade and market sentiment. COVID-19 as well as other factors initially resulted in the deepestdrop in crude oil prices that global markets have seen since 1991. With the rapid spread and resurgence of COVID-19 and its variants, oil prices and the global equity markets deteriorated significantly in 2020. These events andconditions caused a significant decrease in the valuation of oil and natural gas companies in 2020 and a decrease in confidence in the oil and natural gas industry.

While market conditions have recently improved, the full extent of the risks surrounding the COVID-19 pandemic is continually evolving in light of an effective global distribution of effective vaccines and also through subsequentwaves, or additional variants of COVID-19 continue to emerge which are more transmissible or cause more severe disease. The risks disclosed in the Company's Annual Information Form for the year ended December 31, 2020 maybe exacerbated as a result of the COVID-19 pandemic; market risks related to the volatility of oil and gas prices, volatility of foreign exchange rates and volatility of the market price of the Company's common shares; operationalrisks related to increasing operating costs or declines in production levels, capital project delays, international shipping delays, delays in receiving government regulatory approvals, marketing arrangement counterpartyperformance or payment delays, and government regulations; ability to obtain additional financing; and other risks related to cyber-security as the Company's workforce in Canada and Trinidad predominantly works from remoteconnections, accounting adjustments, effectiveness of internal controls, and reliance on key personnel, management, and labour.

Oil and Gas Reserves

The reserves information for the Company’s December 31, 2020 independent reserve report have been prepared by Touchstone’s independent reserves evaluator, GLJ Ltd. ("GLJ"), dated March 4, 2021. The report was prepared inaccordance with definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook ("COGEH") and National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). AllDecember 31, 2020 reserves presented are based on GLJ’s forecast pricing dated January 1, 2021 and estimated costs effective December 31, 2020. Additional 2020 reserves information, as required under NI 51-101, are includedin the Company’s 2020 Annual Information Form dated March 25, 2021. The reserves information for the Company’s December 31, 2019 independent reserve report have been prepared by Touchstone’s independent reservesevaluator, GLJ, dated March 4, 2020. The report was prepared in accordance with definitions, standards and procedures contained in the COGEH and NI 51-101. All December 31, 2019 reserves presented are based on GLJ’sforecast pricing dated January 1, 2020 and estimated costs effective December 31, 2019. Additional 2019 reserves information, as required under NI 51-101, are included in the Company’s 2019 Annual Information Form datedMarch 25, 2020. The reserves information for the Company’s December 31, 2018 independent reserve report have been prepared by Touchstone’s independent reserves evaluator, GLJ, dated March 6, 2019. The report wasprepared in accordance with definitions, standards and procedures contained in the COGEH and NI 51-101. All December 31, 2018 reserves presented are based on GLJ’s forecast pricing dated January 1, 2019 and estimated costseffective December 31, 2018. Additional reserves information as required under NI 51-101 are included in the Company’s 2018 Annual Information Form dated March 26, 2019. The reserves information for the Company’sDecember 31, 2017 independent reserve report have been prepared by Touchstone’s independent reserves evaluator, GLJ, dated March 7, 2018. The report was prepared in accordance with definitions, standards and procedurescontained in the COGEH and NI 51-101. All December 31, 2017 reserves presented are based on GLJ’s forecast pricing dated January 1, 2018 and estimated costs effective December 31, 2017. Additional reserves information asrequired under NI 51-101 are included in the Company’s Annual Information Form dated March 26, 2018. The reserves information for the Company’s December 31, 2016 independent reserve report have been prepared byTouchstone’s independent reserves evaluator, GLJ, dated March 17, 2017. The report was prepared in accordance with definitions, standards and procedures contained in the COGEH and NI 51-101. All December 31, 2016reserves presented are based on GLJ’s forecast pricing dated January 1, 2017 and estimated costs effective December 31, 2016 Additional reserves information as required under NI 51-101 are included in the Company’s AnnualInformation Form dated March 21, 2017. The Company's Annual Information Forms for 2016, 2017, 2018, 2019 and 2020 have been filed on SEDAR and can be accessed at www.sedar.com.

26

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 primarilyapplicable at the burner tip, and given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different than the energy equivalency of the 6:1 conversion ratio, utilizing the 6:1conversion ratio may be misleading as an indication of value.

Oil and Gas Metrics

Net reserve additions are calculated as the change in reserves from the beginning to the end of the applicable period excluding period production. Management uses this measure to determine the relative change of its reservesbase over a period of time.

Oil and Gas Drilling and Test Results

References in this presentation to net feet of pay is based on the Company's interpretation of wireline logs, which is not necessarily indicative of the quantity and quality of prospective hydrocarbon accumulations.

References in this presentation to production test rates and initial flow rates are useful in confirming the presence of hydrocarbons; however, such rates are not determinative of the rates at which such wells will commenceproduction and decline thereafter and are not indicative of long-term performance or of ultimate recovery. Additionally, such rates may also include recovered "load oil" fluids used in well completion stimulation. Whileencouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production for the Company.

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 derivedfrom the Company's reserves evaluation of GLJ Ltd. effective December 31, 2020 and account for locations that have associated proved and/or probable reserves, as applicable. Unbooked locations are internal estimates based onthe prospective 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 internal review. Unbooked locations do not have attributed reserves.Of the approximately 215 (net) drilling locations identified herein, 40 are proved locations; 21 are probable locations; and the remaining are unbooked locations. Unbooked locations have been identified by Management as anestimation of potential multi-year drilling activities based on evaluation of applicable geologic, seismic, engineering, production and reserves information. There is no certainty that the Company will drill all unbooked drillinglocations, and if drilled there is no certainty that such locations will result in additional oil and gas reserves or production. The locations on which the Company will drill wells will ultimately depend upon the availability of capital,regulatory approvals, crude oil and natural gas prices, costs, actual drilling results, additional reservoir information that can be obtained and other factors. While certain of the unbooked drilling locations have been de-risked bydrilling existing wells in relative close proximity to such unbooked drilling locations, other unbooked drilling locations are farther away from existing wells where Management has less information about the characteristics of thereservoir, and therefore there is more uncertainty whether wells will be drilled in such locations; and if drilled there is more uncertainty that such wells will result in additional oil and gas reserves or production.

27

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 AcceptedAccounting Principles ("GAAP") and may not be comparable to similar measures presented by other companies. Shareholders and investors are cautioned that these measures should not be construed as alternatives to cashprovided by operating activities, net income, or other measures of financial performance as determined in accordance with GAAP. Management uses these non-GAAP measures for its own performance measurement and toprovide stakeholders with measures to compare the Company’s operations over time.

Funds flow from operations is an additional GAAP measure included in the Company's consolidated statements of cash flows. Funds flow from operations represents net earnings (loss) excluding non-cash items. Touchstoneconsiders funds flow from operations to be an important measure of the Company's ability to generate the funds necessary to finance capital expenditures and repay debt.

The Company uses operating netback as a key performance indicator of field results. Operating netback is presented on a total and per barrel basis and is calculated by deducting royalties and operating expenses from petroleumsales. If applicable, the Company also discloses operating netback both prior to realized gains or losses on derivatives and after the impacts of derivatives are included. Realized gains or losses represent the portion of riskmanagement contracts that have settled in cash during the period, and disclosing this impact provides Management and investors with transparent measures that reflect how the Company's risk management program can affectnetback metrics. The Company considers operating netback to be a key measure as it demonstrates Touchstone's profitability relative to current commodity prices. This measurement assists Management and investors withevaluating operating results on a historical basis. Please refer to endnote 4 for further information.

28

Advisories


corporate presentation october 2021

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