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

LSE / TSX: TXP

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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. Such statements represent the Company’s internal projections, estimates or beliefs concerning future growth, results ofoperations based on information currently available to the Company based on assumptions that are subject to change and are beyond the Company’s control, suchas: production rates and production decline rates, the magnitude of and ability to recover oil and gas reserves, plans for and results of drilling activity, wellabandonment 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 and regulations, the impact of competition, future capital and other expenditures (includingthe amount, nature and sources of funding thereof), future financing sources and business prospects and opportunities, among other things. Many factors couldcause the Company’s actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company.

Forward-looking statements and information involve significant risks, assumptions, uncertainties and other factors that may cause actual future results oranticipated events to differ materially from those expressed or implied in any forward-looking statements or information and, accordingly, should not be read asguarantees of future performance or results.

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 Company’s future dividend policy; crude oil production levels; thequantity of the Company’s reserves; drilling and recompletion plans and the anticipated timing thereof; future capital expenditures, the timing thereof and themethod of funding; activities to be undertaken in various areas and timing thereof; treatment under governmental regulatory regimes and tax laws; the Company'sfuture sources of liquidity; the Company’s future compliance with its term loan covenants; and estimated amounts for the Company's decommissioning obligations.

Actual results, performance or achievement could differ materially from that expressed in, or implied by any forward-looking statements or information in thispresentation, and accordingly, investors should not place undue reliance on any such forward-looking statements or information. Further, any forward-lookingstatement or information speaks only as of the date on which such statement is made, and Touchstone undertakes no obligation to update any forward-lookingstatements or information to reflect information, events, results, circumstances or otherwise after the date on which such statement is made or to reflect theoccurrence of unanticipated events, except as required by law, including securities laws. All forward-looking statements and information contained in thispresentation are qualified by such cautionary statements. New factors emerge from time to time, and it is not possible for Management to predict all of suchfactors and to assess in advance the impact of each such factor on Touchstone's business or the extent to which any factor, or combination of factors, may causeactual results to differ materially from those contained in any forward-looking statements.

Touchstone Exploration Inc. 3

International oil and gas company with operations in the Republic of Trinidad and Tobago.

Commenced operations in Trinidad in June 2010; with our experienced Management team, production has grown from 143 bbls/d to 1,375 bbls/d in 2017.

In 2017 we drilled 4 new wells and performed 20 recompletions.

Drill up to 10 new wells and perform 24 recompletions in 2018(1).

Our Approach 4

Touchstone Exploration is focused on maximizing crude oil

recovery and returns through drilling, well optimization, and

enhanced oil recovery

Technology and new ways of thinking are the significant

value creators

“Our business is not dependant on finding oil…

we know the oil is there.”

Corbis, Fyzabad, ca. 1950’s

Touchstone, WD-4, 2017

Touchstone’s Evolution – Tenfold Growth From 2010 to 2017 5

2010 – Acquired Territorial Services LimitedOne producing property

650 working interest acres

143 bbls/d production

5 identified drilling locations(1)

2017 – Touchstone Exploration (Trinidad) Ltd.20 properties - 11 producing & 9 exploration

63,778 working interest acres

Produced 1,375 bbls/d in 2017

208 identified drilling locations(2)

Trinidad Office 2010

Trinidad Office 2017

5 property acquisitions40 operated wells drilled 161 completions & recompletions

Touchstone Producing Assets 6

Development Block

Working Interest

Acres

1P Reserves(Mbbls) (1)

1P Reserve Life Index (1)

(years)

2P Reserves(Mbbls) (1)

2P Reserve Life Index (1)

(years)

3P Reserves(Mbbls)(1)

WD-8 650 2,197 14.5 4,387 26.9 5,673

WD-4 700 2,232 11.0 3,871 17.0 5,337

Coora (1&2) 1,699 2,782 24.6 4,463 36.0 5,489

Fyzabad 564 1,106 16.7 1,806 23.6 2,376

Minor Properties 5,123 660 10.8 1,171 18.5 1,501

Total 8,736 8,977 15.1 15,698 24.0 20,376

Reserves Growth(1) 7

Six Consecutive Years of Positive Reserves Growth

0

5,000

10,000

15,000

20,000

25,000

2010 2011 2012 2013 2014 2015 2016Proved Probable Possible

October 1, 2010(2) December 31, 2016(3)

Reserves Volumes (bbls)

Total Proved (1P) 960,700 8,977,000

Total Proved + Probable (2P) 1,930,600 15,698,000

Total Proved + Probable + Possible (3P) 3P not evaluated 20,376,000

Reserves Values (C$)(Net Present Value, 10% Discount, After Tax)

Total Proved (1P) 8,317,000 72,668,000

Total Proved + Probable (2P) 17,593,000 130,740,000

Total Proved + Probable + Possible (3P) 3P not evaluated 169,073,000

Mb

bls

Organic Production Growth via Drilling and Recompletions 8

Now one of the largest onshore independent oil producers in Trinidad with 11 producing properties

Average production for 2017 was 1,375 bbls/d

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17

Bar

rels

of

Oil

Per

Day

(b

bls

/d)

Corporate ProductionJanuary 2016 through December 2017

SWAB OIL BASE PRODUCTION RECOMPLETIONS NEW DRILLS (2017)

2017 Drilling Operations 9

Four wells drilled

Targeted new horizons within and below known pools

Program anticipated initial production of 212 bbls/d

Peak production of 584 bbls/d

Current production of 284 bbls/d (after 6+ months production)

0

10,000

20,000

30,000

40,000

50,000

60,000

0

50

100

150

200

250

300

350

400

June-15-17 July-15-17 August-15-17 September-15-17 October-15-17 November-15-17 December-15-17

Cu

mu

lati

ve O

il P

rod

uct

ion

(b

bls

)

Dai

ly O

il P

rod

uct

ion

(b

bls

/d)

2017 Drilling Program ResultsJune 15, 2017 through December 31, 2017

New Wells Daily Type Well Daily Type Well Cumulative New Wells Cumulative

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Lease Operators A&V Oil & Gas Petrotrin TouchstoneExploration

Fram Exploration Columbus Rocky Point Range Resources Trinity Exploration

Mea

sure

d F

eet

Dri

lled

Operator

Onshore Drilling - Total Feet Drilled by OperatorJanuary 1, 2017 through November 30, 2017

2017 Onshore Drilling Activity in Trinidad 10

* Commencing January 22, 2018(2)

2018 Initia

l P

rogra

m*

2017 A

ctu

al

Source: MEEI Bulletins Vol 54 No 11(1)

12 wells

23 wells

12 wells

4 wells

10 wells

1 well 2 wells

1 well 2 wells

0 wells

Improvements in Drilling Efficiencies – 2014 vs. 2018 11

Moved to a “Turn Key” drilling program in 2017

21% decrease in days per well vs. 2014 program

41% reduction in drilling cost per foot vs. 2014 program

Have Turn Key bids in hand for the first five wells of 2018

Further 24% reduction in days per well anticipated

Additional 14% reduction in drilling cost per foot quoted

Further efficiencies can be realized through a continuous drilling program

$-

$100

$200

$300

$400

2014 Actual (11 Wells) 2017 Actual (4 Wells) 2018 Quoted (5 Wells)

Touchstone ExplorationAverage Drilling Cost per Foot Drilled (US$)

Drill Complete Equip

0

100

200

300

400

500

Petrotrin Farm OutOperators

ISPCOperators

LOAOperators

Touchstone

Feet

per

day

Operator Category

Drilling Efficiency (2017 Onshore Trinidad)(1)Feet Drilled per Day - Spud to Rig Release

US$

per

fo

ot

Source: MEEI Bulletins Vol 54 No 11(1)

2017 Operations - Recompletions 12

20 wells recompleted

Recompletion program helps maintain base production

Cumulative production of 50,485 bbls

Current production of 201 bbls/d (Jan 14, 2017)

-

10,000

20,000

30,000

40,000

50,000

60,000

-

50

100

150

200

250

Cu

mu

lati

ve O

il P

rocu

tio

n (

bb

ls)

Dai

ly O

il P

rod

uct

ion

(b

bls

/d)

Recompletion Program ResultsNovember 2016 through January 14, 2018

All Recompletions (Daily) All Recompletions (Cumulative)

Exploration Upside: Ortoire Block

ORTOIRE BLOCK

35,785 net acres

80% working interest

77 wells drilled to date

4 known pools

Technical work supports low risk exploration and highlightspotential for reactivation, recompletion, and infilldevelopment of vintage fields on the block.

Four established pools on the block

• Balata West (1953)• Herrera FM• conventional oil

• Mayaro (1937/1968) • Gros Morne FM• conventional gas

• Maloney (1946) • Lower Cruse FM• conventional oil

• Lizard Springs (1928)• Lengua/Karamat FM • fractured shale oil

Surface Expression

Balata West

Maloney

Carapal Ridge 2002 – Gas/CondensateLargest onshore discovery in 50 yearsHerrera Formation500 bcf / 25 MMboe condensate

Lizard Springs

Mayaro

Navette, 1952 – OilGros Morne Formation60 MMbbls

Balata East, 1952 – OilHerrera Formation10 MMbbls

Catshill, 1952 – OilForest & Cruse Formations30 MMbbls

13

Exploration Upside: Ortoire Block

ORTOIRE BLOCK

14

A’B

B’

LOW ANGLE THRUST FAULTING

SEISMIC LINE 92_325: AMPLITUDE

B B’

Structurally complex

Seismically well defined

Structural traps

Stratigraphic traps

Turbidite deposits

Shallow and deep potential

Analogies to known pools

Untested anomalies

Moruga Time Structure

EAST BRIGHTON (OFFSHORE) BLOCK

Onshore surface location to offshore target identified

14,412 net acres

70% working interest

4 wells drilled to date

Two abandoned wells

Two wells standing capped

Two 3D Seismic Surveys

1996 – 42 square kilometers

2009 – 113 square kilometers

Exploration Upside: East Brighton Block

PBM 1CAPPED

Drilled 08/1999

Total Depth 8,740 feet

Testing:

DST #4: Nariva 30

3,988 – 4,052 feet

43 feet Net Oil Pay

328 bopd peak

+38 skin

DST#5: Nariva 20

3,480 – 3,564 feet

52 feet Net Oil Pay

259 bopd peak

-3 to +8 skin

Nearshore Prospect – Onshore Location #1

Miocene Age Duplex Feature

Offshore Anomaly – Line 170 – Fault / Fold / Bend

Basin fill

East Brighton

15

5

4

s

surface

ONSHORE LOC 1

Environmental Impact 16

We strive to minimize the environmental impacts of ouroperations, maximize safety and ensure ethical businesspractices.

We are working on becoming the first oil company inTrinidad to have water disposal wells, which will allow usto reinject the water that we produce rather than surfacerelease the water.

In 2017 at the Health, Safety and Environment Forum hostedby Petrotrin, the Company was awarded two awards.

Touchstone placed first in Leadership Engagement in HSEManagement for Large Companies and placed second forthe Gathering Stations HSE Compliance award.

Current water disposal regulations in Trinidad

Improving our Community 17

We are proud to run a community investment program that supports initiatives and local organizations in Trinidad that make a positive impact on the lives of others.

In 2017 Touchstone worked with the following charities:Food hampers to local Trinidadians

Trini Fever - Carnival Mas Band Cerebral Palsy Foundation

Friends of Della-Marie WalcottHelena Charles Home for the aged

Therapeutic & Life Skills CentreCheshire Home for Disabled

Mothers Union Children's Home Fyzabad Community Centre

Cyril Ross Nursery Just Because Foundation

Christmas food hampers to schoolsUnited Way T & T

Victims of 2017 Hurricanes and floods

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

Mtpa million tonnes per annum

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

Year End: Dec 31

Engineers: GLJ Petroleum Consultants Ltd.

Auditors: Ernst & Young LLP

Legal: Norton Rose Fulbright Canada LLPNunez & Co.

Transfer Agent: Computershare Trust Company of Canada

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

TSX: TX

P18

Endnotes and Advisories 19

ENDNOTES & ADVISORIES

Endnotes 20

Slide 3 – Touchstone Exploration Inc. (1) The Company’s Board of Directors has approved ten new wells and 24 well recompletions in 2018 See “Advisories: Forward-looking

Information”.

Slide 5 –Touchstone’s Evolution – Tenfold Growth From 2010 to 2017(1) Drilling locations are based on October 1, 2010 AJM Petroleum Consultants independent reserves evaluation and internal estimates. See

advisories.(2) Drilling locations are based on December 31, 2016 GLJ Petroleum Consultants Ltd. independent reserves evaluation and internal estimates.

See advisories.

Slide 6 - Touchstone Producing Assets(1) Based on gross reserves as per the Company’s December 31, 2016 GLJ independent reserves evaluation. See advisories.

Slide 7 – Reserves Growth (1)

(2) Based on October 1, 2010 AJM Petroleum Consultants independent reserves evaluation. Economic values referenced from this report have been converted to Canadian Dollars from the original US$ reference at the October 1, 2010 Bank of Canada exchange rate of C$1.0215 to US$1.00.

(3) Based on December 31, 2016 GLJ Petroleum Consultants Ltd. independent reserves evaluation. Possible Reserves are based on the December 31, 2016 GLJ Petroleum Consultants Ltd. Competent Persons Report. See advisories.

Endnotes 21

Slide 10 – 2017 Onshore Drilling Activities in Trinidad(1) Source: Government of the Republic of Trinidad and Tobago, Ministry of Energy and Energy Industries; MEEI Bulletins Vol 54 No 11, Consolidated

Monthly Bulletins, January – November 2017: http://www.energy.gov.tt(2) The Company’s Board of Directors has approved ten new wells and 24 well recompletions in 2018 See “Advisories: Forward-looking Information”.

Slide 11– Improvement in Drilling Efficiencies – 2014 vs. 2018(1) Source: Government of the Republic of Trinidad and Tobago, Ministry of Energy and Energy Industries; MEEI Bulletins Vol 54 No 11, Consolidated

Monthly Bulletins, January – November 2017: http://www.energy.gov.tt

Advisories 22

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.

Internal Forecasts

The Company has presented herein growth plans based on certain assumptions, including commodity prices, foreign exchange rates and future sources of capital.

Such growth plans do not represent Management's expectations of the Company's future performance but rather is intended to present Management's belief in the

economic viability of the Company's business based on such scenarios. Readers should not use such growth models as a presentation of the Company's future

performance. The forward-looking statements contained in this presentation are made as of the date hereof and the Company undertakes no obligation to update

publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by

applicable securities laws.

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 affectanticipated future results. The Company is exposed to risks associated with negotiating with foreign governments as well as country risk associated with conducting internationalactivities. Operations may be unsuccessful or delayed as a result of competition for services, supplies and equipment, mechanical and technical difficulties, ability to attract and retainqualified employees on a cost-effective basis, commodity and marketing risk. The Company is subject to significant drilling risks and uncertainties including the ability to find oilreserves 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 theinability to obtain timely regulatory approvals, surface access, access to third party gathering and processing facilities, transportation and other third party related operation risks. TheCompany is subject to industry conditions including changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they areinterpreted 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 andfuture capital. 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 any of itsproperties. 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 inmarket prices for oil, the impact of significant declines in market prices for oil, the ability to access sufficient capital from internal and external sources, changes in income tax laws orchanges in tax laws, royalties and incentive programs relating to the oil and gas industry, fluctuations in interest rates, the Canadian dollar to United States dollar exchange rate andthe Canadian dollar to Trinidad and Tobago dollar exchange rate. The Company is subject to local regulatory legislation, the compliance with which may require significantexpenditures and non-compliance with which may result in fines, penalties or production restrictions or the termination of license, lease operating or farm-in rights related to theCompany’s oil and gas interests in Trinidad. Certain of these risks are set out in more detail in the Company’s Annual Information Form dated March 21, 2017 which has been filed onSEDAR and can be accessed at www.sedar.com.

Advisories 23

Oil and Gas Reserves

The reserves information summarized in this presentation are from the Competent Persons Report (“CPR”) prepared by Touchstone’s independent reservesevaluator, GLJ Petroleum Consultants Ltd. (“GLJ”), dated May 19, 2017, as well as the Company’s prior period reports, as individually noted in this presentation. Eachof these reports were prepared in accordance with definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook and NationalInstrument 51-101 - Standards of Disclosure for Oil and Gas Activities (“NI 51-101”). All December 31, 2016 reserves presented are based on GLJ’s forecast pricingdated January 1, 2017 and estimated costs effective December 31, 2016. Additional reserves information as required under NI 51-101 are included in the Company’sAnnual Information Form dated March 21, 2017.

The estimated future net revenue figures contained in this presentation do not necessarily represent the fair market value of the Company's reserves. There is noassurance that the forecast price and costs assumptions contained in the Company’s reserves evaluation will be attained and variances could be material. Therecovery and reserves estimates of crude oil provided herein are estimates only, and there is no guarantee that the estimated reserves will be recovered. Actualcrude oil reserves may be greater than or less than the estimates provided herein. The reserves evaluator forecasts reserve volumes and future cash flows basedupon current and historical well performance through to the economic production limit of individual wells. Notwithstanding established precedence and contractualoptions for the continuation and renewal of the Company’s existing operating agreements, in many cases the forecast economic limit of individual wells are beyondthe current term of the relevant operating agreements. There is no certainty as to any renewal of the Company’s existing operating arrangements.

Finding Cost and 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, and reserve life index. These metrics do not have standardized meanings or standardized methods of calculation and thereforesuch measures may not be comparable to similar measures presented by other companies. Such metrics have been included herein to provide readers withadditional 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 incurred in the period and the change infuture development costs required to develop those reserves. Finding and development costs per barrel is determined by dividing current period net reserveadditions to the corresponding period’s finding and development cost. The aggregate of the exploration and development costs incurred in the most recent financialyear and the change during that year in estimated future development costs generally will not reflect total finding and development costs related to reservesadditions for that year.

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 reserve additions divided by period production.

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

Advisories 24

Drilling Locations

This presentation discloses drilling and recompletion locations in three categories: (i) proved locations; (ii) probable locations; and (iii) unbooked locations. Provedlocations and probable locations are derived from the Company's reserves evaluation of GLJ Petroleum Consultants Ltd. effective December 31, 2016 and account forlocations that have associated proved and/or probable reserves, as applicable. Unbooked locations are internal estimates based on the prospective acreageassociated with the Company’s assets and an assumption as to the number of wells that can be drilled/recompleted based on industry practice and internal review.Unbooked locations do not have attributed reserves. Of the approximately 208 (net) drilling locations identified herein, 52 are proved locations, 26 are probablelocations and the remaining are unbooked locations. Of the approximately 338 (net) recompletion locations identified herein, 64 are proved locations, 58 areprobable locations and the remaining are unbooked locations. Unbooked locations have been identified by Management as an estimation of potential multi-yeardrilling/recompletion activities based on evaluation of applicable geologic, seismic, engineering, production and reserves information. There is no certainty that theCompany will drill/recomplete all unbooked drilling locations and if drilled there is no certainty that such locations will result in additional oil and gas reserves orproduction. The locations on which the Company will drill/recomplete wells will ultimately depend upon the availability of capital, regulatory approvals, crude oilprices, costs, actual drilling results, additional reservoir information that is obtained and other factors. While certain of the unbooked drilling locations have been de-risked by drilling existing wells in relative close proximity to such unbooked drilling locations, other unbooked drilling locations are farther away from existing wellswhere Management has less information about the characteristics of the reservoir and therefore there is more uncertainty whether wells will be drilled in suchlocations and if drilled there is more uncertainty 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 and operating netback. Theseterms do not have a standardized meaning under International Financial Reporting Standards (“IFRS”) and may not be comparable to similar measures presented byother companies.

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.

The Company uses operating netback as a key performance indicator of field results. Operating netback is presented on a per barrel basis and is calculated bydeducting royalties and operating expenses from petroleum revenue. The Company considers operating netback to be a key measure as it demonstratesTouchstone’s profitability relative to current commodity prices. This measurement assists Management and investors in evaluating operating results on a per barrelbasis to analyze performance on a historical basis.


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