Touchstone Exploration Inc. (TXP.L) Earnings Call Transcript & Summary

Good afternoon, and welcome to the Touchstone Exploration Inc. Investor Update presentation. [Operator Instructions] Before we begin, we'd like to submit the following part. And also I'd like to say it's fantastic to have so many of the Touchstone Exploration team with us today. So I'll start with the list. We've got Paul Baay, President and CEO; Scott Budau, CFO; James Shipka, COO; Brian Hollingshead, VP of Engineering and Business Development; Xavier Moonan, Manager of Exploration; Lynn Anderson, Manager of Subsurface, Christopher George, General Manager, Operations; and Rhea de Gourville, Manager of HSE. I would now like to hand you over to Paul Baay, President and CEO. Good afternoon, Paul.

Thank you very much, Paul, for the introduction, and welcome, everybody. Today, I think we've got a really interesting presentation for you. And really, the concept for today is to give you a little more detail on some of the things that you've maybe seen in some of our previous presentations, and as well as meet some of the other members of the team that I'm sure a number of people haven't seen before. We're going to break the presentation down into a number of different areas. We're going to start out just doing a quick financial review of the information that was provided about a week ago in our year-end numbers. We'll work through some of the reserve numbers. Then we'll go into a fairly quick look at the legacy properties and then what I'll call a deep dive into the Ortoire property, which obviously is a lot of the focus for us and for shareholders. So we'll break that down and update you on a number of things going through there. And then we want to finish off with some things that are very important to us, both the HSE and the ESG and sustainability portion. And after that, as Paul mentioned, I'll give a quick little wrap-up and then we'll answer any questions that you might have. So the concept for today is, as I mentioned, is to meet more of the team and really understand the inventory of opportunities that we have and hopefully give everybody an update on where things are at. So let me start out. I'll turn it over to Scott, and he can run us through the numbers from last week.

Thank you, Paul. Good morning or afternoon, everybody. As Paul mentioned, my name is Scott Budau, I'm the CFO. Just a quick opening financial slide for everyone. This slide summarizes our current capital structure and our 2021 financial results. I'll not go into too much detail given these were released on Monday, but I think there's 2 key highlights to point out now, be it our net earnings reported in the year and our funds both from operations reported in the year. In 2021, we actually had net earnings of $5.7 million. This reversal was -- this story was based on the impairment reversal that was previously took in 2019. I think -- the key takeaway here is that obviously, the crude oil strip price increased throughout the year. But this is also really -- based on our strong reserve book that was released back in early March '22. So I think the team will discuss that further, but it really was a good booking this year. From a funds flow perspective, our legacy crude oil properties continue to be cash flow positive. We reported funds flow of approximately $4.1 million in the year and the fact that we continually cover our overhead while we increase our workforce, increase our administrative functions that allocate towards Ortoire's, a really key highlight, I think that should be overlooked. And moving on to the balance sheet. We exited 2021 with approximately $18 million in cash and $20 million in net debt. And I think the key takeaway every investor should have after this presentation is in 2022, our main priority is increasing production and increasing cash flow from our Ortoire's discoveries. To that end, I think our balance sheet, we are fairly comfortable that we have ample liquidity to fund the remaining coal pipeline cost, which are occurring as we speak. And then our budgeted Cascadura facility costs, which we -- we're currently budgeting at approximately $9 million to $10 million. Finally, I just would like to point out that our 2022 Annual Meeting of Shareholders will be held virtually on June 9, 2022 and for those investors who can attend, we hope to see you or hear from you then. Thank you.

Hi, everyone. I'm Brian Hollingshead, VP of Engineering and Business Development. I'm going to start off with some reserves data. Over the last 3 years, our reserve book has grown significantly, thanks much to the successful Ortoire exploration program. On a 2P basis, we've had 85% annual growth in reserves to the current 76 million BOEs. And we've also achieved a nice balance of commodity mix across gas and oil reserves. Similarly, we've seen significant growth in reserves value NPV-10, over 60% annual growth in NPV-10 to about $536 million 3P currently, which compares to current market cap of about $250 million.

Thanks, Brian. I'm James Shipka, Chief Operating Officer here at Touchstone. And I'll just reintroduce or summarize here our land holdings to the Southwest section here in Trinidad. We've got our long-life, low-decline legacy oil acreage. This is sweet light and medium grade oil, been on production for quite some time. And then to the east, we have the Ortoire exploration block, which will be the core of the majority of the discussions we have here today. Taking a little bit deeper look at the legacy oil assets. Right now, we've got a total of 7 producing assets there. But really, the bulk of our production comes from 4 key blocks or 3 key blocks with Coora being 2 separate agreements. WD-4 does about 40% of our production right now. WD-8 does about 20%, Coora does about 30%. And our small noncore assets, Fyzabad [Indiscernible] combined do about 10% of our production. In February, production was just under 1,400 barrels a day. And one of the key things that we did in 2021, Scott did a great effort in getting this across the line as we entered into a 10-year extended agreements on those 4 key properties of Coora 1, Coora 2, WD-4 and WD-8 that gives us a running room into December of 2030 to continue to develop those properties. Looking at the activity there on the legacy oil acreage in 2021, we drilled 3 wells. We drilled PS-610, which was in WD-4. That well came on beginning of January of this year and has averaged since then about 95 barrels a day. In WD-8, we drilled 2 wells, FR-1815 and 1816. 1815 came on a little bit later in January. Initial production was about 100 barrels a day. It's averaged 50. And today, we actually have a rig on that well optimizing production to get it back up to that 100-barrel a day mark. 1816 came on in February, that well flowed for about a month at 65 barrels a day, and we're putting it on pump actually as we speak as well, again, with a target of 100-barrel a day production out of that well. For 2022, we have 2 wells that we'll be drilling on these legacy oil blocks. In Coora, [Indiscernible] IL-8 1 and 2 are targeting forest and [Indiscernible] sands down between 5,500 and 6,500 feet. And you can see there in the bottom picture there, that is the surface location. Both of those wells will be drilled off of a single well pad to minimize our environmental impact and to keep costs down and move forward there. Looking at the Ortoire block, and the team will get into detail on all of these different prospects, but what we wanted to give everyone to look at was what we're doing there right now, particularly interest at Coho where we've got facility construction going on and the pipeline going in over at Cascadura, where we're in the EIA review process, but we're also preparing the surface facilities. And over at Royston, where we are doing our testing there and getting ready to put together a field development plan to share with the ministry. Much like the legacy oil blocks in March of this year, we were granted a 5-year extension to Ortoire, which really is a game changer for us. It gives us 5 more years to pursue some of the exploration targets that you'll see here shortly. But it also allows us the flexibility to prioritize the activities we'll have on the block in that time. We can look at development on a slightly different schedule. We can look at exploration, whether it's convenient or when we have windows for the rig. So it really allows us to find that balance. And it's going to be really, really interesting to watch over the next year or 2 as Ortoire goes from an exploration block to an exploration and development block.

Hi. Good morning, everyone. I'm Christopher General Manager of Operations. I will be presenting to you an update on the core facility and pipeline regarding the surface facility, as you can see to the left of the screen there's a pic of this facility at the core 1 well site at the moment. That has been 95% completed, most of the major installation has been done. Currently working on some of the smaller installations, which includes the installation of the gas meter, GC, [Indiscernible], et cetera. All of these equipment has already been procured in the country and would be installed in the next coming weeks. Also site facilities are also in place, fully powered by our solar power system as we remain committed to have a go green in terms of power requirements on site. Regarding the pipeline, as you can see, there's a picture of welling activities that has been ongoing for the last couple of weeks. The entire [Indiscernible] has been cleared. It should be noted that a major section of the [Indiscernible] actually lies along a preexisting oil road infrastructure. It's approximately 1.7 kilometers. That would have allowed us to really minimize in terms of the impact on the environment, in terms of vegetation clearance. So that was really good in terms of the installation for the pipeline works. We expect to be continuing welling over the next couple of weeks, that will be followed by [Indiscernible] of the pipe, trenching activities, installation of the pipeline there after we would have the backfill and done. On this slide, on the left of your screen, you could see that we have the stringing of the 6-inch pipe along right of way. That will be ongoing over the next couple of weeks, as well as on the right of your screen, you would see that there are some of the pipe sections that has already been welded. So we continue to move feverously as we work towards meeting [Indiscernible] for me. And we believe that we would definitely meet that target as we have been and really good well over the last couple of years and that is expected over the next couple of months as we proceed to focus.

Thanks, Chris. So moving over to the Cascadura facility project, the equipment procurement and construction are well underway. We've taken a proactive approach to the facility equipment process with all long lead items being procured well ahead of time for this facility. We've also engaged with the local shipping and logistics firm, and they'll manage the end-to-end shipping for all the equipment and this will help us avoid any shipping and supply chain bottlenecks. Our procurement process for the facility has been to bid for equipment locally in Trinidad as well as Canada and the U.S. and then we move forward with the best option. The 3 separators have been constructed in Canada. They're currently being created for shipment to Cascadura. On the left is the Cascadura 1 separator shown, which will be capable of about 55 million cubic feet per day from that single well. And also included is the [Indiscernible] separator, as well as the condensate flash separator, which is on the bottom right. And that condensate flash separator will take gas vapors that emit from the like condensate and divert it back into the system for gas sales. The 2 VRU and 2 recycled compressors are currently being built in Houston, Texas, and they're scheduled to ship in late April. These compressors will take gas vapors from the tanks and flash separator and boost them back up to high pressure for gas sales. We've sourced 2 compressors to provide redundancies in the system and avoid any significant downtime due to any equipment repairs. So each unit will be sized for about 75% of total capacity. So if one happens to go down for repairs, the other one can pick up most of the load and keep the gas flowing.

Thanks, Brian. Just wanted to walk everyone through the EIA process, where we are in it and what it actually encompasses. So the way that the EIA works in Trinidad is it is an environmental impact assessment that comes as part of our approval to move forward with the project. The EMA, who governs this decided that this project was at a significant enough scope that an EIA was warranted. So what we did is we applied for approval to do really the entire development process of Cascadura. This EIA covers the construction of our surface facility up to a capacity of 200 million a day of natural gas, 5,000 barrels a day of associated condensate, total storage capacity of almost 10,000 barrels at the Cascadura A site plus it gives us a line of sight for the Cascadura B and Cascadura C surface locations that Lynn will introduce to you shortly and the wells associated with that as well as the building of an access road to the south and condensate sales pipeline that will take that to market with our partner Heritage there. This process kicked off in April of last year. We went through community consultations. We went through environmental reviews. We went through impact and mitigation surveys, an emergency response planning. We submitted this to the ministry in December, and we should be notified by mid-May as to the status of the project and its approval. And to give you some insight on there, you've got kind of the 12 chapters that we had to focus on. And we don't have the leeway with the EIA process to make significant changes. So when we have a field development plan completed, we needed all of that to be submitted to ministry. And this was a 1,700-page document. And just for fun, that required 13 hard copies to be delivered to the various government ministries and agencies. So a really significant project. But with its approval, not only will we be able to continue with the construction that Brian has alluded to. It will give us a clear path over the next 3 to 5 years of development of Cascadura to bring it on to its full potential of what we see as being 200 million a day of gas. Starting to key in on some of the other properties from a geological point of view and a testing point of view. We'll look at Royston first, the oil asset we've got there. And the nice thing about Royston is we've got a really good comparable field of Penal/Barrackpore, which has been on production at this point in time for almost 100 years. It's produced about 115 million barrels of oil and over half a Tcf of associated gas. The similarities between Royston and Penal/Barrackpore are excellent, both with respect to geology and depths and thicknesses. Royston is actually a little bit thicker, as is the majority of the Ortoire sands that we see. And you can see that our reserve booking -- not reserve bookings, pardon me, our original oil in place that Brian will just discuss here in a minute of almost 212 million barrels is pretty consistent with what you see out of that same Penal/Barrackpore field. So this has given us not only us confidence, but our reserve evaluators and other engineering and geological specialists that we brought into the project, confidence with how not only Royston should work, but Herrera in this area should work.

So as James mentioned, GLJ, our independent reserves auditors prepared on assessments of Royston at year-end 2021. They calculated the overthrust and intermediate sheets to contain between 128 million and 212 million barrels of oil in place. This represents an exciting sizable new oil pool discovery by Touchstone, and we're very excited over the years to delineate and develop it further. The subthrust was not evaluated by GLJ as the Royston 1 well do not penetrate it. However, the oil we've seen in the upper sheets bodes well for deeper prospects at Royston. So at Royston, we performed 3 tests, and I'll just -- I'll summarize the 3 of them here. The first test was at the bottom of the wellbore in the top of the intermediate sheet. That zone tested about 550 barrels a day flowing light, sweet, clean crude oil. The second and third tests were in the overthrust section of the wellbore with the upper most test 3 flowing at rates of around 750 barrels per day of total fluid with about 30% to 60% oil cuts. We currently have the well on a long-term production test in that upper most zone with oil rates of about 75 barrels per day. Reservoir inflow and pressures are still performing well at Royston, and this is even despite the 2,000-foot downhole perforating assembly that's stuck in the hole across the perforations effectively, impeding reservoir inflow. And I think overall, the Royston 1 well, it exhibited strong initial pressures of over 7,000 psi and very solid flow rates. And the results we saw across the intermediate and Overthrust have aligned well with the Penal/Barrackpore analog that James spoke to. So going forward at Royston 1, we're currently evaluating a drilling sidetrack operation, which would see us reenter the existing wellbore and kick off at about 7,000 feet and then drill out and evaluate the entire intermediate sheet as the Royston 1 well as it stands, didn't get to the bottom of the intermediate. As well in our completions, at Royston 1, we perforated large gross [Indiscernible] intervals with our [Indiscernible]. And I think going forward, we'll definitely look to be more selective in our perforation intervals to reduce the water inflow.

Thanks, Brian. I'll turn this over now to Lynn [Indiscernible], kind of walk through the development prospects that we've got here at Ortoire, starting at COHO going through Cascadura and Royston. And again, this kind of keys in off what I touched on earlier that we're moving from this exploration phase to the monetization phase. And as we get these infrastructure projects done, as we get COHO tied in, as we get Cascadura facility built and tied in, and Royston optimized, we can then select where we want to increase that production through development drilling on the individual properties.

We're having a little bit of connectivity issues with Lynn who's in Trinidad, but I think she's there now. If you're there, Lynn, take it away. Lynn, can you hear us okay? Lynn, just test your connectivity there. It seems like you can't hear us at the moment. Paul, perhaps you'll give it a moment just to see if Lynn does connect, if not we carry on with the presentation, perhaps come back to this, if we may. Or if you could carry on that would be great.

No, I think I can carry on. I think when Lynn shows up, we can let her jump in there, if not -- what we want to talk about now is really the development wells that we've got lined up throughout the Ortoire block. And I apologize that Lynn is not able to join us. She's our Manager of Subsurface actually in Trinidad right now, in the field, keeping an eye on a few things. So this is our COHO prospect. This is the one that James talked a little bit earlier about where we're currently tying in that well that you see that's the flame on that map. But what we really see is there's another development location just up to the north that you see there is COHO 2. And the real key to that, as you can see, we move up structurally as we move up to the north. But on the other side of that little saddle that is illustrated there by that dash green line. And we can drill that from the same pad. It's about 450 meters up to the north and it will access the other side of that as we go forward. This is in the engineering report. So it won't really add a bunch of reserves. But what it really will do is once the team's got that pipeline in place, we can start to evaluate and expand the gas that's going into that area. So it's a pretty low-risk opportunity for us to go ahead and bring it on. So that's the cohort development. And then if we move over to Cascadura, this is taken out of that EIA report that James had talked about a little bit earlier. And what you see illustrated on here is basically on the far left-hand side of the screen is our existing surface facility or our existing lease that has ST 1, the first 2 wells that we drilled at Cascadura on there, and that's where Brian and the team, along with Christopher will be building the main surface facility. It will mainly be a big knockout of liquids at the condensate -- condensate will go down those green lines and then down to the south and then the gas will go along that red dotted line up to the north of 20-inch line. And that 20-inch line is going to be capable of about 250 million cubic feet of gas production. So it gives you a pretty good idea of kind of what the anticipation is going along there.

I was going to say, I think we may have Lynn back. Thank you, Lynn. Yes, we can.

So Lynn, why don't you just jump in. I just finished up CASA if you can talk about the development of [Indiscernible] it will be great.

Yes, sure. Good day, everyone. My name is Lynn Anderson. I'm the subsurface manager for Touchstone Exploration. One thing I wanted to point out, like to date, all of our wells have been drilled on pre-existing sites. So this is a really important factor because going ahead with this development phase, we now have the opportunity to high-grade all of our locations where previously we had used existing sites to minimize our environmental footprint. And we'd also hope to try and expedite some of the regulatory processes. But so going ahead with development, we now have the ability to high-grade our geological prospects and put them in the optimal position. As Paul mentioned, Cascadura 1 ST1 and CAS Deep was drilled on the Cascadura A surface and the main facility. As we go eastward to Cascadura B and C development site we have 4 pads on each of these -- each of these -- 4 locations on each of these pads, again, trying to minimize our environmental footprint, optimizing efficiencies for operating and this will give us an opportunity to explore the upper sheet for -- or sorry, upper sheet 3 and lower sheet 4. So we'll be targeting both of these sands and development going forward. I believe Paul touched on the NGC gas line, which will go to the main NGC line to the East. And we also have the 6-inch condensate that will go south to heritage and Cat hill. Right. So this brings us to Royston, which was our last well that we drilled. Development in Royston will initially focus on the intermediate and the sub thrust. The reason for this is because analogous fields in Trinidad have proven that the intermediate and the subthrust are the most prolific sands. So we'll be focusing on this initially. To the right of the screen, you can see a seismic section. The trajectory in purple and blue that is Royston, which penetrated the overthrust and also went into the intermediate. You can see that we penetrated the overthrust in the crestal position and the trajectory then went on to the southern limb or southern flank of the intermediate limb. Also on this section, you can see there are a number of development wells noted in red, all targeting the various sheets in different sands. You'll also see 2 exploration wells noted in black. Number 2 is Kraken, which is targeting the Cretaceous. And over on the right-hand side, we also have steel head which is going to target [Indiscernible] sands, entirely different play than what we've done so far. On the left side of the map, we have the little diamonds are showing our surface pads. Once again, we're utilizing these pads to drill multiple wells, and again, it just reduce our environmental footprint. The seismic section on the map is dashed in red, and that is what is shown in the seismic section on the right-hand side. That was from our recently acquired Ortoire 2D seismic program, and that is line 40 that you see there. I just wanted to note too that for COHO, we have submitted a field development plan, declare commerciality and we have received approval on our field development plan. For Cascadura, we declared commerciality. We submitted the FTP and just awaiting feedback from Ministry. And Royston, we have sent in a notification of discovery, and we'll be proceeding from there.

Yes, I got it. Thanks, Lynn. I'll pass this on to Xav, who will be able to do a much better job of discussing the exploration prospects we have here at Ortoire. What we'll focus on initially is what we call our Phase 2 exploration prospects, which will encompass what Lynn just touched on, Kraken, Steelhead, and we'll take a look at Bass and Guabine. And then a little bit later, we'll have Xav just go into some of the additional prospects we have coming on the back end of that. So Xav, I'll let you take it away.

Hi, good day folks, I'm Xavier Moonan, the Exploration Manager, Touchstone. So yes, as Lynn alluded to in the previous slide, we talked about the Kraken prospect, which is quite exciting. It's quite exciting indeed because we tie this play back to the Guyana-Suriname basin, which as you know, is a regional hotspots in Northeast on Latin America. We've actually done some recent work with GeoMark, regional geochem company, who have basically typed the oils that we've acquired from the Royston well. And those actually type perfectly back to the Guyana-Suriname basin cretaceous play. So this cretaceous play is targeting similar type sandstones, sourced from the Guyana shield and it's all being overlain by very tick marine sediments. So this play type occurs within the auto block. And we know that it occurs actually, for instance, quite below the Royston feature itself. So it can be targeted from the same path. So Kraken, it would be the first onshore cretaceous attempt in 15 years, so quite a highlight for the country on the whole and it potentially may be the seventh deepest onshore well ever drilled. In vicinity of the Ortoire block itself, we've looked at all of -- we looked at all of the cretaceous wells as across Trinidad. And in vicinity of the Ortoire block, we've got the [Indiscernible] Exxon drill, Iguana River well to the south of us, and we've got [Indiscernible] wells to the north of us. And we've got a good time to develop the play now. And yes, the fact that Royston has hydrocarbons tells us that the cretaceous there has a pretty good chance. So I'll now move on to Steelhead. Steelhead basically targeting another part of the block -- the Ortoire block itself. We wanted to really fully evaluate this block laterally and extensively, right? And in this play, we're targeting a feature on the southernmost part of the block itself. So that gives us a tie in that area. And we will be looking at the [Indiscernible] sandstone here and the Herrera sandstones. And those sandstones are both based on modeling, they pinch out onto the northern flank of the [Indiscernible] structure. So that cross-section, you see center, you see the sandstones, yellow sandstones all climbing up this very steep [Indiscernible] feature there, [Indiscernible] we're basically targeting an area where those sandstones are then being implicated on the northern flank of it. So that's Steelhead. The good thing -- another good thing about Steelhead is that it's accessible, truly same road that we've also built for the Royston area. So pad and road basically easily accessible. Moving on to the Guabine and Bass prospects. These prospects are again targeting Herrera sandstones . Guabine to start with first. It's actually got 2 well penetrations and it's by a broad feature, very broad anticline features out of the Cascadura area. We've got 2 wells [Indiscernible] 87, 89, both which 1,500 feet of highly resistive Herrera sandstones, but were not tested due to complications in wells. We've actually mapped this feature based on 2D and 3D seismic. We see the feature climbing even further towards the east of those wells. So we plan to target that potential. Moving on to Bass. So Bass was a feature that we saw on the Southern Basin consortium 2D seismic lines, which were acquired back in 1990s. And we saw that in one of those lines and our recently acquired 2D seismic was able to highlight it on 2 further lines towards the west of it. So it confirmed the structural feature. So we see a nice [Indiscernible] with the closure feature in that area as well. In the COHO area, so we already spoke of COHO 1 and the potential COHO 2. COHO, if you look at the seismic section and to the right of the picture, you see pop up of triangular shaped feature. That's where we are going to produce the COHO gas from, just the north of that and to the south of that, there are 2 [Indiscernible] sheets. So we got the [Indiscernible] feature to the north and [Indiscernible] feature to the south. If you look at the seismic section to the left, there's a large fault, which [Indiscernible] the Herrera sandstone, shown in yellow there. And there's an amplitude feature there that we have mapped up as [Indiscernible] feature. So there are a series of near field exploration that we can target here and potentially tie back to COHO facility. I'm moving on to the [Indiscernible] area. So [Indiscernible] we basically drilled, again, from an existing pad to reduce the environmental footprint. This was [Indiscernible], we drilled and we will be able to confirm hydrocarbons and 3 sheets, 3 structural sheets, the over [Indiscernible] intermediate and subtrust, got great logs over it. We see that feature claims based on 3D seismic towards East. And so we've got 2 sites over there that we want to potentially target the resource.

Hi, everyone. My name is Rhea de Gourville, HSE Manager at Touchstone. So our goal at Touchstone is to be an industry leader in Trinidad, in corporate governance, as well as environmental and social responsibility. So one of the decisions we made as a leader in the industry is to hire local staff. About 5 years ago, we did an organizational restructure and we focused on local Trinidadian staff within the organization on building careers, as well as provide opportunity for growth. Touchstone now employs about 94 full-time staff, 15 which are at the head office in Calgary that have meant 79 staff in Trinidad. It's important to know that all 79 employees are in Trinidad and are Trinidadian. At Touchstone we also believe an equal opportunity and we value diversity in the workforce. So we provide equal employment opportunity for all employees and don't discriminate based on gender, race, sexual orientation, age, marital status or disability. And for an example of that, 24% of the workforce are women, which is more than a double industry standard in Trinidad, which is 12%. Moving on to incident. We had 0 loss payments events in 2021 and so far, 0 as well for the year to be for 2022. In the environmental part, whereas we also continue to strive for 0 incidents. Unfortunately, we did have 1 incident 2021. However, proud to say that it was the only environmental incident we've had over the last 2 years. Furthermore, as we laid out an inaugural sustainability report when it comes to the environment, not only are we following the environmental standards locally when our goal is to significantly exceed that. So the team has been working diligently to put a plan in place to mitigate total vented gas on our development blocks. And our objective is to achieve and captive oil solution gas from our wells and seal facilities to sell or to use market in our operations. Additionally, over the last few years, we've been aiming to eliminate also surface release water and today, we're proud to say that all our blocks [Indiscernible] release. We are working hard to find a solution for the last final block in WD-4 where we hope to have 100% of all our produced water injected back into the ground by early 2023. Looking at the safety of all our stakeholders, Touchstone [Indiscernible] energy chamber, [Indiscernible] renew our [Indiscernible] . There is no local certification program to contract the HSE management systems. And with this process and will not only create opportunities for increased work in this sector, [Indiscernible] effectively Touchstone continue to demonstrate that we govern our business according to industry best practices. Also, it would show that we meet all legislative requirements and effectively manage our risk and continue to do so. Finally, we are committed to giving back to the communities in which we operate. A committee was established to me and ensure that we are having the creators [Indiscernible] within our communities. In addition, we also hired a community liaison with alternate community regularly speaking residents, charities, government officials, representatives, regulatory bodies, you name it, schools and so on to ensure the contributions we make as a company touch as many people as possible.

Thanks very much, Rhea. I appreciate that. I hope this has given everybody a pretty good overview of what we've got in front of us. I think when we take a look at it, we really got 4 producing assets now that 1 of them is on stream. That's our legacy oil asset. We'll add COHO, Cascadura, Royston this year as the other 3 producing assets. And it really will be a step change for us go from where we are today at roughly 1,400 barrels a day to something north of 10,000 BOEs a day before the end of the calendar year. And I think the other thing that hopefully people will take away from this is the depth of the inventory of opportunities we have on the island in Trinidad. It really is a multiyear program in what we have. So I think it's really important to just understand that, that's what we've been developing over the last number of years, is this large land base that has endless opportunities, really endless opportunities as we drill every well, we learn something new for sure. It's maybe not as exciting right now as it has been in the past in drilling some of these exploratory wells, building the shiny silver things that the engineers love to do in getting this stuff on production, as I say, isn't as exciting as drilling some of the big exploratory wells. But really the key now is to take this from being a -- what I would say is basically a pure exploration company into something that's going to be a mid-cap production company with a really exciting exploration event. And when you look at the [Indiscernible], you look at what we've got in the Herrera and you look at the Cretaceous that Xavier and Lynn have talked about, I think it's going to set up a really interesting balance going forward. So on that note, I'll turn it back over to Paul and maybe you can fill some of those questions, Paul.

Fantastic. Thank you, and thank you to all the team for updating Investor Day in the presentation. Ladies and gentlemen, do please continue to submit your questions using the Q&A tab situated on the right-hand corner of your screen. Just on the company take a few moments to review those questions submitted today. I'd like to remind you the recording of the presentation, along with a copy of the slides and the published Q&A can be accessed via your investor dashboard. Paul and the team mostly we received a number of presubmitted questions investors today. And we focused on several specific areas, and thank you to everyone who've submitted those so far. Perhaps I could start off with the first one, Paul you can just direct that to the member of the team. It's appropriate to do so. It reads as follows, are COHO and Cascadura developments on track? Might there be more delays?

Yes. I think Christopher covered that off. Christopher and Brian covered that off pretty well. I mean we're looking at first gas in May at COHO and touch with -- the real thing there is weather. I mean we've got everything in country. So that's just going to be our case there. But we've built in some time for those rainy days. So we're pretty comfortable with that. And then September is really driven -- at Cascadura it's really driven by the EIA process. And I think James did a great job of outlining how complicated that is. And I know that Rhea and her team were on the ground, putting that together. And we've been working close with the ministry. I was actually in country last week, had a good meeting with the ministers. And that may date that's set out there is not only 1 that is sort of an indication. It's actually in legislation for them to work to that date and the ministry is trying to do something sooner for us. But we've built around that may approval. As Brian pointed out, things are getting shipped from Houston, things are getting shipped from Canada and they're going to be down there in May-June. So even if we got the EIA approved a little bit earlier, really, we're still going to be waiting on parts. So we're doing this parallel process and working through to that September.

Thank you, Paul. Next one, we've got here, which I think we have touched on a little as well. What are the cretaceous potential with [Indiscernible] license area? How many leads and how big?

Yes, I'm going to turn that one over to Xavier, if he's still there to talk about it because it's a play that's only big for Ortoire, I think it's big for the country as well. But Xav, can I turn that over to you?

Yes, sure. I mean, like it's -- like I said, it's going to be the first test of this play in like 15 years, right? It's been to us in other parts and stuff. And I mean, we know that there are leads and other places, but we will like to evaluate it in [Indiscernible] first and see how it works out.