Touchstone Exploration Inc (LON:TXP)

Touchstone Exploration Inc (LON:TXP)


Share Price
15.70 p
Change
-0.05 (-0.32 %)
Market Cap
£25.23 m
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Touchstone Exploration Inc

Touchstone Exploration Inc. is a Canadian-based, international upstream oil and gas company currently active in the Republic of Trinidad and Tobago. It is one of the largest independent onshore oil producers in Trinidad, with an experienced management and executive team that have a track record of delivering value to shareholders.

The Company's common shares are traded on the Toronto...

EPIC: TXP
Market: AIM:TXP
TSX:TXP
52-week High/Low: 21.900p / 10.275p
Sector: Energy
Market Cap: £25.23 m
Website: www.touchstoneexploration.com
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Big Picture – A Deep Dive Examination of Touchstone Exploration Inc


Touchstone Exploration Inc Snapshot

The Company’s strategy is to leverage the Board’s extensive oil recovery experience and capability to develop international onshore properties that create shareholder value.

In Trinidad, the Company’s interests in approximately 90,000 gross acres of exploration and development rights make it one of the largest independent onshore oil producers in Trinidad. Touchstone holds over 8,700 working interest acres of onshore producing properties that have known crude oil reserves as well as over 55,000 exploration and undeveloped working interest acres that are being evaluated.

Outside of its core Trinidad portfolio the Board continues to examine opportunities in jurisdictions that have stable political and fiscal regimes coupled with large defined original oil in place.

OPERATIONS

Operations

Touchstone has been producing oil in Trinidad since 2010 and is now one of the largest onshore independent oil producers in the country. The Company holds interests on producing and exploration properties in southern Trinidad. All producing properties are operated by Touchstone; a full schedule of our producing assets are set out in the table below:

SUMMARY OF PRODUCING PROPERTIES

  GROSS RESERVES (MBBL)
Properties Working Interest Lease Type Average 2017 Daily Production (bbls/d) Gross Acres Total Proved* Total Probable* Total Possible* Total Proved + Probable + Possible*
Coora (Block 1 & 2) 100% LOA 316 1,699 3,905 1,867 1,574 7,346
WD-4 100% LOA 479 700 2,865 2,513 2148 7,525
WD-8 100% LOA 267 650 2,228 2,291 1,334 5,853
Fyzabad 100% Crown and Freehold 137 564 1,074 634 528 2,235
Barrackpore 100% Freehold 37 211 131 116 106 353
Icacos 50% Freehold 11 1,947 42 16 17 75
New Dome 100% Farmout 24 69 86 28 38 152
Palo Seco 100% Crown 14 499 140 66 41 247
San Francique 100% Freehold 84 1,351 261 272 136 669
South Palo Seco 100% Farmout 6 2,167 0 0 0 0
                 
TOTAL     1,375 9,857 10,733 7,802 5,921 24,456

The Company’s core focus is on developing production on its four onshore lease operatorship properties (Coora Block 1 & 2, WD-4 & WD-8) and its Fyzabad onshore property. The Company also has interests in a number of small undeveloped exploration properties and two larger exploration blocks. The Company’s exploration and undeveloped blocks consist of approximately 80,250 gross acres.

* The reserves information above summarizes certain information from the Company’s Reserves Report prepared by Touchstone’s independent reserves evaluator, GLJ Petroleum Consultants Ltd. (“GLJ”), with an effective date of December 31, 2017. The report was prepared in accordance with definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook and National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities (“NI 51-101”). The disclosure above represents only a portion of the disclosure required under NI 51-101. Full disclosure with respect to the Company’s reserves as at December 31, 2017 is contained in the Company’s Annual Information Form for the year ended December 31, 2017 dated March 26, 2018.

The recovery and reserves estimates of crude oil provided herein are estimates only, and there is no guarantee that the estimated reserves will be recovered. Actual crude oil reserves may be greater than or less than the estimates provided herein. The reserves evaluator forecasts reserve volumes and future cash flows based upon current and historical well performance through to the economic production limit of individual wells. Notwithstanding established precedence and contractual options for the continuation and renewal of the Company’s existing operating agreements, in many cases the forecast economic limit of individual wells are beyond the current term of the relevant operating agreements. There is no certainty as to any renewal of the Company’s existing operating arrangements.

Possible reserves are those additional reserves that are less certain to be recovered than probable reserves. There is a 10% probability that the quantities actually recovered will equal or exceed the sum of proved plus probable plus possible reserves.

 

Canada and Trinidad & Tobago.

John D. Wright, P.Eng, CFA
Chairman

Mr. John D. Wright has been the Chairman of the Board of Touchstone Exploration Inc. since 2012. He also holds the position of Chairman of the Board of Alvopetro Energy Ltd. Mr. Wright was a Director, President and Chief Executive Officer of Ridgeback Resources Inc. from January to June 2017. Previously, Mr. Wright was a Director, President and Chief Executive Officer of Lightstream Resources Ltd. (formerly PetroBakken Energy Ltd.) since 2012 and Petrobank Energy and Resources Ltd. since 2000. From June 2006 to December 2010 Mr. Wright was a Director, President and Chief Executive Officer of Petrominerales Ltd. and then Chairman of the Board from December 2010 until December 2013. Mr. Wright is a past Chairman of the World Petroleum Council-Canada, past Governor of CAPP and founder of Fundación Ñan Paz in Ecuador and of Fundación Vichituni in Colombia. Mr. Wright holds a B.Sc. in Petroleum Engineering from the University of Alberta (1981) and a Charter Financial Analyst (CFA) designation (1988).

Paul R. Baay, ICD.D
President & Chief Executive Officer

Mr. Baay has over 25 years of experience leading oil and gas exploration and production companies. Mr. Baay has been Chairman of the Board and Chief Executive Officer of Touchstone since 2010. Prior to Touchstone Mr. Baay was Managing Director of Abacus Energy, part of Abacus Private Equity from 2007 through 2010 and was a senior officer of True Energy Inc. from 2000 through 2007. From 2005 to 2012 he was the Chairman of the Board of Vero Energy Inc. From 1998 to 2000 he was the Chairman of the Board of Directors of Request Seismic Surveys Ltd. and served as President, Chief Executive Officer, and Director of Remington Energy Ltd. from 1991 to 1999.

Kenneth R. McKinnon, Q.C., ICD.D
Director

Mr. McKinnon is a Partner at Citrus Capital Partners Ltd. (consulting firm) since January 2014. Mr. McKinnon has been a Director of Touchstone Exploration Inc. (formerly Petrobank Energy and Resources Ltd.) since March 14, 2000. Mr. McKinnon is currently a member of the Board and Chairman of the Compensation Committee of Alvopetro Energy Ltd. since November 2013. Previously, Mr. McKinnon was a Director of Lightstream Resources Ltd. from October 2009 to December 2016 and held the position of Chairman from May 2011 through December 2016. Mr. McKinnon was a Director of Petrominerales Ltd. from May 2006 until the company was acquired in November 2013. Mr. McKinnon held the position of Vice President Legal and General Counsel of Critical Mass Inc., a website design company, from March 2000 to December 2014. Mr. McKinnon served on the Board of Governors of the University of Calgary from September 2008 to August 2014, as Vice-Chair of its Governance and Human Resources Committee from June 2010 through August 2012, Vice-Chair of its Finance and Property Committee from August 2013 to August 2014 and Chair of its Budget Committee from August 2012 to August 2014. In addition, Mr. McKinnon served as a Director and Chairman of the Governance and Compensation Committee of Alberta Innovates – Technology Futures from January 2010 to March 2015.

Dr. Harrie Vredenburg, PhD, ICD.D
Director

Dr. Vredenburg is Professor of Strategy and Suncor Energy Chair in Strategy and Sustainability at the Haskayne School of Business at the University of Calgary, where he has been on faculty since 1989 prior to which he taught at McGill University. In 2010 he added the role of Academic Director of the Global Energy Executive MBA, a degree offered jointly by the University of Calgary and IHS Cambridge Energy Research Associates. He also holds an appointment as an International Research Fellow at Oxford University's Saïd Business School (UK). He is a director of Kainji Resources Ltd and Teric Power Ltd. both of which are private companies.

Thomas Valentine
Director

Mr. Valentine is currently a Senior Partner of Norton Rose Fulbright Canada LLP, a national law firm in Canada and a member of the global Norton Rose Fulbright Group. Mr. Valentine has 30 years of experience in the oil and gas industry, both as a barrister and as a solicitor. His focus is on international energy projects, with a particular emphasis on upstream and midstream operations. Mr. Valentine is a member of the Law Society of Alberta and the Association of International Petroleum Negotiators. He also serves on the Board for NXT Energy Solutions Inc.

Peter Nicol
Director

Mr. Nicol joined Touchstone in June 2017. Mr Nicol has over 30 years of oil and gas experience in both industry and finance and is currently Non-Executive Director, Chair of the Audit Committee and Member of the Remuneration Committee of Eco (Atlantic) Oil and Gas Plc. He was previously a partner at GMP Securities Europe and co-head of the London office of Tristone Capital as the Head of Oil and Gas Research and was responsible for initiating coverage for over 60 international E&P companies. Mr. Nicol has also held positions including Global Sector Director of Oil and Gas research at ABN AMRO Bank NV and Head of European Oil and Gas research at Goldman Sachs Group Inc.

Stanley Smith
Director

Mr. Smith joined Touchstone in October 2017. Mr, Smith is a designated accountant with over 39 years of public accounting experience, most recently as an Audit Partner with KPMG LLP, Calgary (1984 – 2016). Mr. Smith’s focus of practice was public company auditing and advising primarily in the oil and gas exploration and production and services industries. After retirement from KPMG LLP on September 30, 2016, Mr. Smith has been carrying out activities as an independent businessman. Mr. Smith is a member of the Chartered Professional Accountants of Alberta and Institute of Corporate Directors. Mr. Smith is currently a director of Razor Energy Corp., which is listed on the TSX Venture Exchange.

 

Significant shareholders:
Name Number of common shares held Percentage of issued share capital
North Energy ASA 18,548,750 11.5
Polar Asset Management Partners Inc. 11,779,500 7.3
Richard Sneller 5,170,000 3.2
Edale Europe Absolute Master Fund 4,910,729 3.1
David & Monique Newlands 4,830,000 3.0
     
    Last updated March 25, 2019
 
  • 16% of common shares are not in public hands.
  • Rule 17 of the AIM Rules requires, inter alia, that shareholders notify an AIM listed company once their holding is three percent or more, and changes thereto.

 

Contact Us

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Touchstone Exploration Inc.
Suite 4100
350 - 7th Avenue SW
Calgary, Alberta T2P 3N9
Canada

Telephone
(403) 750-4400

Email
[email protected]

Touchstone Exploration (Trinidad) Ltd.
#30 Forest Reserve Road
Fyzabad, Trinidad, W.I.

Telephone
+1 (868) 677-7411

Fax
+1 (403) 266-5794

Nomad Shore Capital and Corporate Limited
Joint Brokers Shore Capital Stockbrokers Limited
GMP FirstEnergy
Transfer Agent Computershare Trust Company of Canada
Auditors Ernst and Young LLP
Legal Norton Rose Fulbright LLP/Nunez & Co.
Reserve Engineers GLJ Petroleum Consultants Ltd. (Calgary)
Investor Relations Stacey Gundersen
[email protected]

Touchstone Exploration Inc.
Suite 4100
350 - 7th Avenue SW
Calgary, Alberta T2P 3N9
Canada

Telephone
(403) 750-4400

Email
[email protected]

Touchstone Exploration (Trinidad) Ltd.
#30 Forest Reserve Road
Fyzabad, Trinidad, W.I.

Telephone
+1 (868) 677-7411

Fax
+1 (403) 266-5794

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