FIRST QUARTER 2024 FINANCIAL
AND OPERATING RESULTS AND OPERATIONAL UPDATE
CALGARY, ALBERTA (May 14, 2024) -
Touchstone Exploration Inc. ("Touchstone",
"we", "our" or the "Company") (TSX, LSE: TXP) reports its financial and operating results for the three
months ended March 31, 2024 and provides an operational
update.
Selected financial information is
outlined below and should be read in conjunction with our March 31,
2024 unaudited interim condensed consolidated financial statements
and related Management's discussion and analysis, both of which
will be available under our profile on SEDAR+ (www.sedarplus.ca) and on our website (www.touchstoneexploration.com).
Unless otherwise stated, all financial amounts presented
herein are rounded to thousands of
United States dollars, and
all production volumes disclosed herein are
sales volumes based on Company working interest before royalty
burdens.
Paul R. Baay, President and Chief Executive Officer,
commented:
"We are pleased to announce
positive first quarter 2024 results during what has been a very
busy time for the Company. Since coming onstream in September 2023,
the Cascadura field has transformed Touchstone both operationally
and financially, having contributed an estimated $20 million in
operating netbacks, ahead of tying in the two further successfully
drilled development wells from the surface location. Initial
decline rates on our two producing Cascadura wells have been
steeper than we first expected but we are learning more about the
reservoir for further exploitation. We are maintaining our
full year guidance given production increases are heavily weighted
towards the fourth quarter of 2024.
As
announced on May 1, 2024, we were delighted to reach an agreement
with the Board of Directors of Trinity Exploration and Production
Plc on the terms of a recommended all-share acquisition. We believe
the benefits of the proposed transaction will provide further scale
and strength to Touchstone in addition to growth opportunities that
will be driven by the increased production of the two companies. We
are excited at the greater flexibility such a deal would give us
around future capital programs, in addition to allowing us to
potentially accelerate our development plans.
We
look forward to updating shareholders on our ongoing operating and
corporate workstreams in due course."
First Quarter
2024 Financial and Operating Highlights
· Achieved average quarterly production of 7,015 boe/d (80
percent natural gas), representing a 228 percent increase from
first quarter 2023 average production volumes of 2,139 boe/d (40
percent natural gas). First quarter 2024 production decreased by 18
percent relative to 8,504 boe/d produced in the fourth quarter of
2023 (79 percent natural gas), mainly reflecting natural declines
from our Cascadura field.
· Realized petroleum and natural gas sales of $16,584,000 (Q4
2023 - $20,759,000).
- Cascadura
field production volumes in the quarter contributed $6,961,000 of
net natural gas sales at an average realized price of $2.49 per Mcf
and $1,657,000 of net NGL sales at an average realized price of
$69.59 per barrel.
- Natural
gas production from the Coho-1 well averaged net volumes of 2.8
MMcf/d (460 boe/d) in the quarter and contributed $542,000 of net
natural gas sales at an average realized price of $2.16 per
Mcf.
- Crude oil
production from our legacy fields contributed $7,424,000 of net
sales at an average realized price of $69.95.
· Generated an operating netback of $10,463,000, a 24 percent
decrease from the fourth quarter of 2023, primarily due to
decreased natural gas and NGL sales volumes.
· Achieved quarterly funds flow from operations of $6,142,000 in
the first quarter of 2024 compared to $10,489,000 in the preceding
quarter.
· Delivered net earnings of $3,628,000 ($0.02 per basic and
diluted share).
· $11,962,000 in quarterly capital investments primarily focused
on expenditures directed towards one CO-1 crude oil development
well and two Cascadura development wells, and progressing
construction on the flowline from the Cascadura C surface location
to the Cascadura natural gas processing facility.
· Exited
the first quarter of 2024 with a cash balance of $9,537,000 and a
net debt position of $27,621,000, resulting
in a reduced net debt to annual funds flow from operations ratio of
1.45 times.
Post Period-end Highlights
· Successfully drilled and cased the CO-375 development on our
CO-1 block, with openhole logs and drilling data indicating a sand
thickness of approximately 530 feet in the Forest Formation and
approximately 625 feet in the Cruse Formation.
· On
April 18, 2024 we executed a third amended and restated loan
agreement with our existing lender providing for an additional $13
million of bank debt capacity, which will be used to finance our
previously announced initial 2024 capital program.
· On May
1, 2024, we announced that we reached an agreement with the Board
of Directors of Trinity Exploration and Production Plc on the terms
of a recommended all-share acquisition.
First Quarter 2024 Financial and Operating Results
Overview
|
Three months
ended
|
March 31,
2024
|
December
31, 2023
|
March
31,
2023
|
|
|
|
|
Operational
|
|
|
|
|
|
|
|
Average daily production
|
|
|
|
Crude oil(1)
(bbls/d)
|
1,166
|
1,133
|
1,285
|
NGLs(1)
(bbls/d)
|
262
|
622
|
-
|
Crude oil and
liquids(1) (bbls/d)
|
1,428
|
1,755
|
1,285
|
Natural gas(1)
(Mcf/d)
|
33,521
|
40,491
|
5,124
|
Average daily production
(boe/d)(2)
|
7,015
|
8,504
|
2,139
|
|
|
|
|
Average realized
prices(3)
|
|
|
|
Crude oil(1)
($/bbl)
|
69.95
|
72.26
|
64.86
|
NGLs(1)
($/bbl)
|
69.59
|
72.92
|
-
|
Crude oil and
liquids(1) ($/bbl)
|
69.88
|
72.49
|
64.86
|
Natural gas(1)
($/Mcf)
|
2.46
|
2.43
|
2.12
|
Realized commodity price
($/boe)(2)
|
25.98
|
26.53
|
44.03
|
|
|
|
|
Production mix (% of
production)
|
|
|
|
Crude oil and
liquids(1)
|
20
|
21
|
60
|
Natural gas(1)
|
80
|
79
|
40
|
|
|
|
|
Operating netback
($/boe)(2)
|
|
|
|
Realized commodity
price(3)
|
25.98
|
26.53
|
44.03
|
Royalties(3)
|
(5.76)
|
(5.53)
|
(13.01)
|
Operating
expenses(3)
|
(3.83)
|
(3.46)
|
(12.05)
|
Operating
netback(3)
|
16.39
|
17.54
|
18.97
|
|
|
|
|
|
|
|
|
Financial ($000's except per share
amounts)
|
|
|
|
|
|
|
|
Petroleum and natural gas
sales
|
16,584
|
20,759
|
8,476
|
|
|
|
|
Cash from operating
activities
|
5,369
|
8,512
|
913
|
|
|
|
|
Funds flow from
operations
|
6,142
|
10,489
|
803
|
|
|
|
|
Net earnings (loss)
|
3,628
|
(21,236)
|
(279)
|
Per share - basic and
diluted
|
0.02
|
(0.09)
|
(0.00)
|
|
|
|
|
Exploration capital
expenditures
|
108
|
595
|
8,750
|
Development capital
expenditures
|
11,854
|
591
|
269
|
Capital
expenditures(3)
|
11,962
|
1,186
|
9,019
|
|
|
|
|
Working capital
deficit(3)
|
14,121
|
7,581
|
4,383
|
Principal long-term balance of bank
debt
|
13,500
|
15,000
|
19,500
|
Net debt(3) - end of
period
|
27,621
|
22,581
|
23,883
|
|
|
|
|
Share Information (000's)
|
|
|
|
|
|
|
|
Weighted average shares outstanding
- basic
|
234,213
|
233,487
|
233,037
|
Weighted average shares outstanding
- diluted
|
236,548
|
233,487
|
233,037
|
Outstanding shares - end of
period
|
234,213
|
234,213
|
233,037
|
|
|
|
|
Notes:
(1) Refer to
"Advisories - Product Type Disclosures" for further
information.
(2) In the table above
and elsewhere in this announcement, references to "boe" mean
barrels of oil equivalent that are calculated using the energy
equivalent conversion method. Refer to "Advisories - Oil and Natural Gas Measures" for
further information.
(3) Non-GAAP financial
measure. See the "Advisories -
Non-GAAP Financial Measures" for further
information.
Outlook and Guidance
Our 2024 capital program is
progressing as planned, with four of the six wells in the program
successfully drilled and cased. Road and pipeline construction to
tie-in our two recently drilled Cascadura development wells to our
natural gas facility is progressing and we expect the
infrastructure will complete prior to the end of the third quarter
of 2024.
Although Cascadura field production
has declined higher than originally anticipated, we currently
forecast to maintain our preliminary 2024 guidance announced on
December 19, 2023. The material forecasted 2024 production increase
is expected to be weighted to the fourth quarter of 2024 based on
estimated initial production from our two recently drilled
Cascadura development wells. Management will update its 2024
guidance for the proposed acquisition of Trinity Exploration and
Production Plc if and when appropriate.
Operational Update
Cascadura
The Cascadura field produced
approximately 5,388 boe/d (95 percent natural gas) in the first
quarter of 2024, representing 77 percent of
our total quarterly net production. Since initial production in
September 2023 through March 31, 2024, our Cascadura-1ST1 and
Cascadura Deep-1 wells have cumulatively produced approximately
8.77 Bcf of gross natural gas volumes (net - 7.02 Bcf) and over
121,000 barrels of gross NGLs (net - 97,000 barrels) in 208 total
days. Over the same period, the field has contributed a net
operating netback of approximately $19.96 million.
During the first seven-months of
production we have continually monitored and optimized natural gas
rates from the two Cascadura wells. In the Cascadura-1ST1 well, we
replaced the original choke valve with a larger valve. In the
Cascadura Deep-1 well, we ran a production logging tool to indicate
the source of gas within the wellbore and we added perforations
above and below the original completion interval which marginally
increased production. Both Cascadura-1ST1 and Cascadura Deep-1
continue to produce through surface chokes to control
pressure.
Production in the first quarter of
2024 was impacted by natural declines as well as approximately six
days of downtime in the Cascadura Deep-1 well associated with the
operations noted above. Based on our analysis to date, including
higher than expected initial decline rates as compared to
pre-production models, the wells are exhibiting a dual
porosity/permeability system which indicate that production is
derived from both sand porosity/permeability as well as a fracture
porosity system. A fracture porosity system can deliver high
initial production rates and pressure which can decline quickly
while sand matrix porosity/permeability may deliver at lower
production rates for longer periods of time.
Given the nature of the production,
and the apparent influences of natural fractures in the structure,
we have commenced a feasibility study to determine the potential
benefits of a stimulation program to optimize natural gas and
associated liquids recovery from the wells.
CO-1 Drilling
Operations
The CO-375 development well, located
on our CO-1 block, was spud on April 3, 2024 and reached a total
depth of 6,500 feet on April 30, 2024. The Forest Formation, which
was the secondary target, was observed at a depth of 2,805
feet and the primary Cruse Formation target was encountered at a
depth of 4,598 feet. Drilling samples and openhole wireline logs
indicated the presence of sands in both formations. The Forest
Formation indicated 530 feet of sand, with approximately 250 feet
of net hydrocarbon pay. Similarly, the Cruse Formation indicated
625 feet of sand, with an estimated 240 feet of net hydrocarbon
pay. The well has been cased in preparation for oil production and
the drilling rig has been released.
The completion rig was mobilized to
the surface location and completion operations are underway on the
CO-374 well, following which the CO-375 well will be completed. We
expect that both development wells will be online by the end of May
2024.
Production
In April 2024, we produced average
net volumes of 5,940 boe/d as follows:
· Cascadura field contributed net sales volumes of 4,360 boe/d
consisting of:
- natural
gas sales volumes of 25.4 MMcf/d or 4,226 boe/d with a realized
price of $2.51 per Mcf; and
- natural
gas liquids volumes of 134 bbls/d with an average realized price of
$76.12 per barrel;
· Coho
net average natural gas sales volumes were 2.6 MMcf/d or 426 boe/d
at a realized price of $2.28 per Mcf (excluding third party
processing fees); and
· average net daily crude oil sales volumes were 1,154 bbls/d
with an average realized price of $76.12 per barrel.
2024 Annual Meeting of Shareholders
Touchstone's virtual-only Annual
Meeting of Shareholders (the "Meeting") will be held on Wednesday,
June 19, 2024 at 10:30 a.m. (Mountain time).
Registered and beneficial
shareholders will be mailed a notice-and-access notification and
form of proxy on or around May 17, 2024, advising as to the
electronic availability of the Meeting materials, including the
2024 Management Information Circular, the 2023 audited consolidated
financial statements and related Management's discussion and
analysis.
For holders of our depositary
interests, hard copies of our Management Information Circular and
form of direction will be mailed on or about May 17,
2024.
Subsequent to the mailing date, the
Meeting materials will be available on our
website (www.touchstoneexploration.com/investors/shareholder-meetings)
and under our profile on SEDAR+ (http://www.sedar.com/www.sedarplus.ca).
Management Update
As Touchstone continues to pursue
its growth strategy and operations are becoming engineering
intensive, Touchstone is pleased to announce that Mr. Brian
Hollingshead has been promoted to Executive Vice President,
Engineering and Business Development. In addition to joining our
executive team, Mr. Hollingshead will oversee our production,
engineering and facilities departments. In conjunction, Mr. James
Shipka's title has been amended from Chief Operating Officer to
Executive Vice President, Asset Development and HSE, where he will
continue to lead our HSE, drilling and subsurface teams.
Touchstone Exploration Inc.
Touchstone Exploration Inc. is a
Calgary, Alberta based company engaged in the business of acquiring
interests in petroleum and natural gas rights and the exploration,
development, production and sale of petroleum and natural gas.
Touchstone is currently active in onshore properties located in the
Republic of Trinidad and Tobago. The Company's common shares are
traded on the Toronto Stock Exchange and the AIM market of the
London Stock Exchange under the symbol "TXP".
For further information about
Touchstone, please visit our website at www.touchstoneexploration.com
or contact:
Touchstone Exploration Inc.
Paul Baay, President and Chief
Executive
Officer
Tel: +1 (403) 750-4487
Scott Budau, Chief Financial
Officer
James Shipka, EVP Asset Development
and HSE
Shore Capital (Nominated Advisor and Joint
Broker)
Daniel Bush / Toby Gibbs / Tom
Knibbs
Tel: +44 (0) 207 408 4090
Canaccord Genuity (Joint Broker)
Adam James / Ana
Ercegovic
Tel: +44 (0) 207 523 8000
FTI
Consulting (Financial PR)
Nick Hennis / Ben Brewerton
Tel: +44 (0) 203 727 1000
Email: touchstone@fticonsulting.com
Advisories
Forward-looking
Statements
The information provided in this
announcement contains certain forward-looking statements and
information (collectively, "forward-looking statements") within the
meaning of applicable securities laws. Such forward-looking
statements include, without limitation, forecasts, estimates,
expectations and objectives for future operations that are subject
to assumptions, risks and uncertainties, many of which are beyond
the control of the Company. Forward-looking statements are
statements that are not historical facts and are generally, but not
always, identified by the words "expect", "plan", "anticipate",
"believe", "intend", "maintain", "continue to", "pursue", "design",
"result in", "sustain" "estimate", "potential", "growth",
"near-term", "long-term", "forecast", "contingent" and similar
expressions, or are events or conditions that "will", "would",
"may", "could" or "should" occur or be achieved. The
forward-looking statements contained in this announcement speak
only as of the date hereof and are expressly qualified by this
cautionary statement.
Specifically, this announcement
includes, but is not limited to, forward-looking statements
relating to: the Company's business plans, strategies, priorities
and development plans; Touchstone's preliminary 2024 guidance; the
anticipated increase in 2024 annual average production from 2024
capital spending and the cash flows therefrom; anticipated timing
of developmental and exploration drilling production; expected
drilling activities, including locations and the timing thereof;
anticipated timing of well tie-in operations and
production coming online; expectations that
proceeds from the Company's amended loan agreement will be able to
fully finance its 2024 capital program; the Company's proposed
acquisition of Trinity Exploration and Production Plc, including
the Company's expectation that the proposed acquisition will close
under the announced terms, the timing thereof, and the benefits to
be derived from the proposed acquisition; the quality and quantity of prospective hydrocarbon
accumulations based on openhole wireline logs and drilling data,
including the Company's interpretations thereof;
expected completion activities, including
locations and the timing thereof and the expected timing of
production therefrom; the Company's expectation of conducting
future well optimization activities; and Touchstone's current and future
financial position, including the sufficiency of resources to fund
future capital expenditures and maintain financial liquidity. The
Company's actual decisions, activities, results, performance, or
achievement could differ materially from those expressed in, or
implied by, such forward-looking statements and accordingly, no
assurances can be given that any of the events anticipated by the
forward-looking statements will transpire or occur or, if any of
them do, what benefits that Touchstone will derive from them.
This announcement contains
future-oriented financial information and financial outlook
information (collectively, "FOFI") about Touchstone's prospective
results of operations and production included in its preliminary
2024 guidance, all of which are subject to the same assumptions,
risk factors, limitations, and qualifications as set forth in the
paragraphs above. The FOFI contained in this announcement was made
as of the date of this announcement and was provided for the
purpose of providing further information about Touchstone's future
business operations. This information has been provided for
illustration only and, with respect to future periods, is based on
budgets and forecasts that are speculative and are subject to a
variety of contingencies and may not be appropriate for other
purposes. Touchstone and its Management believe that FOFI has been
prepared on a reasonable basis, reflecting Management's best
estimates and judgments, and represents, to the best of
Management's knowledge and opinion, the Company's expected course
of action. However, because this information is highly subjective,
it should not be relied on as necessarily indicative of future
results. Touchstone disclaims any intention or obligation to update
or revise any FOFI contained herein, whether as a result of new
information, future events or otherwise, unless required pursuant
to applicable law. Readers are cautioned that the FOFI contained
herein should not be used for purposes other than for which it is
disclosed herein, and the financial outlook information contained
herein is not conclusive and is subject to change. The actual
results of the Company's operations and the resulting financial
results will vary from the amounts set forth herein and such
variations may be material.
For further information regarding Touchstone's
preliminary 2024 guidance and the related advisories thereto, refer
to the Company's announcement dated December 19, 2023 entitled
"Touchstone Announces 2024
Capital Budget, Preliminary 2024 Guidance and an Operational
Update" and the Company's most recent
Management's discussion and analysis for the three months ended
March 31, 2024 accompanying our March 31, 2024 unaudited interim
condensed consolidated financial statements. For further
information regarding the Company's proposed Acquisition of Trinity
Exploration and Production Plc and the related
advisories thereto, please refer refer to the
Company's news release dated May 1, 2024 entitled "Touchstone Exploration Announces Acquisition
of Trinity Exploration and Production PLC" and the Rule 2.7
Announcement. All of the above referenced documents are
available online on our SEDAR+ profile
(www.sedarplus.ca)
and website (www.touchstoneexploration.com).
Although the Company believes that
the expectations and assumptions on which the forward-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. 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 of factors and risks. Certain of these
risks are set out in more detail in the Company's 2023 Annual
Information Form dated March 20, 2024 which will be available under
the Company's profile on SEDAR+ (www.sedarplus.ca) and on the Company's website (www.touchstoneexploration.com).
The forward-looking statements contained in this announcement are
made as of the date hereof, and except as may be required by
applicable securities laws, the Company assumes no obligation or
intent to update publicly or revise any forward-looking statements
made herein or otherwise, whether as a result of new information,
future events or otherwise.
This announcement contains inside
information for the purposes of Article 7 of the UK version of the
Market Abuse Regulation (EU) No.596/2014, which forms part of UK
law by virtue of the European Union Withdrawal) Act
2018.
Non-GAAP Financial
Measures
This announcement references various
non-GAAP financial measures, non-GAAP ratios, capital management
measures and supplementary financial measures as such terms are
defined in National Instrument 52-112 Non-GAAP and Other Financial Measures
Disclosure. Such measures are not recognized measures under
Canadian Generally Accepted Accounting Principles ("GAAP") and do
not have a standardized meaning prescribed by International
Financial Reporting Accounting Standards ("IFRS") and therefore may
not be comparable to similar financial measures disclosed by other
issuers. Readers are cautioned that the non-GAAP financial measures
referred to herein should not be construed as alternatives to, or
more meaningful than, measures prescribed by IFRS, and they are not
meant to enhance the Company's reported financial performance or
position. These are complementary measures that are commonly used
in the oil and natural gas industry and by the Company to provide
shareholders and potential investors with additional information
regarding the Company's performance. Below is a description of the
non-GAAP financial measures, non-GAAP ratios, capital management
measures and supplementary financial measures disclosed
herein.
Funds flow from operations
Funds flow from operations is
included in the Company's consolidated statements of cash flows.
Touchstone considers funds flow from operations to be a key measure
of operating performance as it demonstrates the Company's ability
to generate the funds necessary to finance capital expenditures and
repay debt. Management believes that by
excluding the temporary impact of changes in non-cash operating
working capital, funds flow from operations provides a useful
measure of the Company's ability to generate cash that is not
subject to short-term movements in non-cash operating working
capital.
Operating netback
Touchstone uses operating netback as
a key performance indicator of field results. The Company considers
operating netback to be a key measure as it demonstrates
Touchstone's profitability relative to current commodity prices and
assists Management and investors with evaluating operating results
on a historical basis. Operating netback is a non-GAAP financial
measure calculated by deducting royalties and operating expenses
from petroleum and natural gas sales. The most directly comparable
financial measure to operating netback disclosed in the Company's
consolidated financial statements is petroleum and natural gas
revenue net of royalties. Operating netback per boe is a non-GAAP
ratio calculated by dividing the operating netback by total
production volumes for the period. Presenting operating netback on
a per boe basis allows Management to better analyze performance
against prior periods on a comparable basis.
Capital expenditures
Capital expenditures is a non-GAAP
financial measure that is calculated as the sum of exploration and
evaluation asset expenditures and property, plant and equipment
expenditures included in the Company's consolidated statements of
cash flows and is most directly comparable
to cash used in investing activities. Touchstone considers capital
expenditures to be a useful measure of its investment in its asset
base.
Working capital and net debt
Working capital and net debt are
capital management measures used by Management to monitor the
Company's capital structure to evaluate its true debt and liquidity
position and to manage capital and liquidity risk. Working capital
is calculated by subtracting current liabilities from current
assets as they appear on the applicable consolidated balance
sheet. Net debt is calculated by summing
the Company's working capital and the principal (undiscounted)
long-term amount of senior secured debt and is most directly comparable to total liabilities.
Net debt to funds flow from operations ratio
The Company monitors its capital
structure using a net debt to funds flow from operations ratio,
which is a non-GAAP ratio and a capital management measure
calculated as the ratio of the Company's net debt to trailing
twelve months funds flow from operations for any given
period.
Supplementary Financial Measures
Realized commodity price per boe - is comprised of petroleum and natural gas sales as
determined in accordance with IFRS, divided by the Company's total
production volumes for the period.
Royalties per boe - is
comprised of royalties as determined in accordance with IFRS,
divided by the Company's total production volumes for the
period.
Operating expenses per boe - is
comprised of operating expenses as determined in accordance with
IFRS, divided by the Company's total production volumes for the
period.
For further information, please
refer to the "Advisories - Non-GAAP Financial Measures"
section of the Company's most recent
Management's discussion and analysis for the three
months ended March 31, 2024 accompanying our March
31, 2024 unaudited interim condensed
consolidated financial statements, both of which will be available
on our website (www.touchstoneexploration.com)
and under our SEDAR+ profile
(www.sedarplus.ca).
Oil and Natural Gas
Measures
Where applicable, natural gas has
been converted to barrels of oil equivalent (boe) based on six
thousand cubic feet (Mcf) to one barrel (bbl) of oil. The barrel of
oil equivalent rate is based on an energy equivalent conversion
method primarily applicable 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 6:1 conversion ratio may
be misleading as an indication of value. This conversion factor is
an industry accepted norm and is not based on either energy content
or prices.
Product Type
Disclosures
This announcement includes references
to crude oil, NGLs, natural gas, and average daily production
volumes. Under National Instrument 51-101 -
Standards of Disclosure for Oil
and Gas Activities ("NI 51-101"), disclosure of production
volumes should include segmentation by product type as defined in
the instrument. In this MD&A, references to "crude oil" refer
to "light crude oil and medium crude oil" and "heavy crude oil"
combined product types; references to "NGLs" refer to condensate;
and references to "natural gas" refer to the "conventional natural
gas" product type, all as defined in the instrument. In addition,
references to "crude oil and liquids" herein include crude oil and
NGLs.
For information regarding specific
product disclosures in accordance with NI 51-101, please refer to
the "Advisories -
Product Type Disclosures"
section in the Company's most recent Management's discussion and
analysis for the three months ended March 31, 2024 accompanying our
March 31, 2024 unaudited interim condensed
consolidated financial statements, both of which will be available
on our website (www.touchstoneexploration.com)
and under our SEDAR+ profile
(www.sedarplus.ca).
Abbreviations
The following abbreviations are
referenced in this announcement:
bbls/d
barrels per
day
boe
barrels of oil equivalent
boe/d
barrels of oil equivalent per day
NGLs
natural gas liquids
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
Competent Persons
Statement
In
accordance with the AIM Rules for Companies, the technical
information contained in this announcement has been reviewed and
approved by James Shipka, Executive Vice President, Asset
Development and HSE of Touchstone Exploration Inc. Mr. Shipka is a
qualified person as defined in the London Stock Exchange's Guidance
Note for Mining and Oil and Gas Companies and is a Fellow of the
Geological Society of London (BGS) as well as a member of the
Canadian Society of Petroleum Geologists and the Geological Society
of Trinidad and Tobago. Mr. Shipka has a Bachelor of Science in
Geology from the University of Calgary and has over 30 years of oil
and gas exploration and development experience.