Big Picture – A Deep Dive Examination of Touchstone Exploration Inc
Touchstone Exploration Inc Snapshot
The Company's strategy is to leverage western Canadian enhanced oil recovery experience and capability to international onshore properties to create shareholder value. Jurisdictions will be targeted that have stable political and fiscal regimes coupled with large defined original oil in place.
In Trinidad, Touchstone holds over 10,000 working interest acres of onshore producing properties that have known crude oil reserves. In addition, the Company holds over 44,500 exploration working interest acres that are being evaluated.
Domestically, Touchstone holds over 31,500 non-producing working interest acres in Saskatchewan with a primary focus on the Viking formation.
Touchstone's common shares are listed on the Toronto Stock Exchange and AIM market of the London Stock Exchange under the trading symbol TXP.
Touchstone operates within Western Canada and internationally, with its primary focus in Trinidad and Tobago. Touchstone is one of the most active independent on-shore oil producers in Trinidad with assets focused in several large, high quality reservoirs with significant original oil in place and an extensive inventory of low-risk development opportunities.
Touchstone holds over 31,000 non-producing acres in Saskatchewan with a primary focus on the Viking formation.
Touchstone’s non producing Canadian assets are located in a heavy oil region of the Canadian prairies.
Touchstone Exploration is engaged in the exploration and development of its oil and gas properties located in Trinidad.
Touchstone Exploration Inc., through its wholly-owned subsidiaries, Touchstone Exploration (Barbados) Ltd. and Touchstone Exploration (Trinidad) Ltd., is actively engaged in the development and exploration of its oil and gas properties located in the Republic of Trinidad and Tobago. With interests in over 74,990 gross acres of exploration and development rights Touchstone is one of the largest independent onshore oil producers in Trinidad.
The islands of Trinidad and Tobago are the southernmost islands in the Caribbean and are located between the Atlantic Ocean and the Caribbean Sea, northeast of Venezuela. The southern tip of the island lies only 11 kilometers from the Venezuelan mainland, while the island of Tobago lies approximately 30 kilometers northeast of Trinidad. Trinidad is the Caribbean's largest producer of oil and natural gas. According to the BP Statistical Review of Energy, June 2015, Trinidad had proved oil reserves of 0.8 billion barrels as of January 2015 and produced an average of 112 thousand barrels of crude oil per day in 2014.
Trinidad has a long and successful history as an oil and gas producing nation. The first successful oil well was drilled in Trinidad in 1866 by Walter Darwent and by 1908 commercial oil production began onshore. Since then the country has developed a tremendous infrastructure in support of the energy industry and today is the world’s sixth largest LNG exporter and the largest LNG exporter to the United States. The country boasts one of the largest natural gas processing facilities in the Northern Hemisphere (with a processing capacity of almost 2 billion cubic feet per day and an output capacity of 70,000 barrels per day of Natural Gas Liquids) in addition to the state owned Pointe-a-Pierre oil refinery which has over 168,000 barrels per day of distillation capacity. According to HIS Global Insight, Trinidad is also the world’s largest exporter of ammonia and the second largest exporter of methanol.
Trinidad lies east of the South American continent in what is commonly referred to as the Colombia-Venezuela-Trinidad Oil Province – a broad but complex hydrocarbon filled basin which contains the second largest proven oil reserves in the world. Trinidad is situated at the triple junction formed by the meeting of three plates, the Caribbean, South American and North Atlantic Plates. As a result, this small island and its offshore surroundings is one of the most geologically complex areas of the world. The interaction of these plates at the triple junction has resulted in the formation of folded (anticlines) and faulted structures, ideal structure traps for the accumulation of petroleum.
To date, most wells have been drilled to structural traps or combination structural/ Stratigraphic traps. The sedimentary rocks which dominate the onshore reservoirs were deposited in a Fluvial-Deltaic and shallow marine environment sourced from Venezuela’s Orinoco River. Today these young sandstone deposits exhibit high porosity and permeability and are commonly found at relatively shallow depths of less than 2,000 meters which allows for low risk, economic recovery of the oil reserves.. The source rock from which most of the oil is generated is the Cretaceous age Naparima Hill Formation. The rocks of this formation outcrop at three locations in Trinidad, but the most accessible location is the San Fernando Hill which can be seen from any of the entrances into San Fernando.
For information on key properties, please click here
John D. Wright, P.Eng, CFA
Mr. Wright was appointed Chairman of Touchstone in 2012. Mr. Wright is also the President and CEO of Lightstream Resources Ltd. and Chairman of the Board of Alvopetro Energy Ltd. He is a director of Hawk Exploration Ltd. and Spyglass Resources Corp. Previously, Mr. Wright was President and CEO of Pacalta Resources from May 1996 to June 1999, Executive Vice President and COO of Morgan Hydrocarbons from December 1993 to April 1996, and Vice President Production of Morgan Hydrocarbons from 1989 to 1993. In the not-for-profit sector, John is Chairman of the Canadian Association – World Petroleum Council and founder of Fundación Ñan Paz in Ecuador.
Kenneth R. McKinnon, Q.C., ICD.D
Mr. McKinnon has been a director of Touchstone since March 2000, a director of Petrominerales from May 2006 until it was acquired in November 2013, a director of Lightstream Resources Ltd. since October 2009, and a director of Alvopetro Energy Ltd. since November 2013. Mr. McKinnon was appointed Lead Independent Director of Petrobank on October 29, 2012. Mr. McKinnon holds the position of Vice President Legal and General Counsel of Critical Mass Inc., a website design company since March 2000. Mr. McKinnon has served on the Board of Governors of the University of Calgary since September 2008, as Vice-Chair of its Governance and Human Resources Committee from June 2010 – August 2012, Vice-Chair of its Finance and Property Committee since August 2013 and Chair of its Budget Committee since August 2012, and as a director and Chairman of the Governance and Compensation Committee of Alberta Innovates – Technology Futures since January 2010.
Mr. Valentine is currently a partner with Norton Rose Fulbright Canada LLP. 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 gas and LNG. 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 Calvalley Petroleum Inc., NXT Energy Solutions Inc. and Tour of Alberta.
Paul R. Baay, ICD.D
President & Chief Executive Officer
Mr. Baay has over 20 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.
Dr. Harrie Vredenburg, PhD, ICD.D
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.
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.
|Name||Number of ordinary shares held||Percentage of issued share capital|
|Polar Asset Management Partners Inc.||14,719,000||14.27|
|City Financial Investment Company||6,910,345||6.7|
|John David Wright||4,745,027||4.6|
Touchstone Exploration Inc.
Suite 4100, 350 – 7th Avenue SW
Calgary, Alberta T2P 3N9
Touchstone Exploration (Trinidad) Ltd.
#30 Forest Reserve Road
Fyzabad, Trinidad, W.I.
+1 (868) 677-7411
+1 (403) 266-5794
|Nomad||Shore Capital and Corporate Limited|
Shore Capital Stockbrokers Limited
|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)|