TOUCHSTONE ANNOUNCES SECOND QUARTER 2022 FINANCIAL AND OPERATING RESULTS

CALGARY, ALBERTA

August 11, 2022

Touchstone Exploration Inc. (“Touchstone”, “we”, “our”, “us” or the “Company”) (TSX, LSE: TXP) reports its operating and financial results for the three and six months ended June 30, 2022.

Selected information is outlined below and should be read in conjunction with our June 30, 2022 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.sedar.com) and on our website (www.touchstoneexploration.com). Unless otherwise stated, all financial amounts herein are rounded to thousands of United States dollars.

Second Quarter 2022 Financial and Operational Highlights

1. Achieved quarterly average crude oil production volumes of 1,420 barrels per day (“bbls/d”), representing a 2 percent increase relative to the preceding quarter and a 1 percent increase from the 1,402 bbls/d produced in the second quarter of 2021.
2. Realized petroleum sales of $12,596,000 from an average crude oil price of $97.48 per barrel compared to petroleum sales of $7,586,000 from an average realized price of $59.06 per barrel in the comparative quarter of 2021.
3. Generated an operating netback of $44.99 per barrel, a 19 percent increase from the first quarter of 2022 and a 71 percent increase from the $26.30 per barrel reported in the second quarter of 2021.
4. Recognized current income tax expenses of $1,547,000 in the quarter compared to $432,000 in the second quarter of 2021, driven by $1,043,000 in supplemental petroleum tax expenses based on our average realized oil price exceeding the $75.00 per barrel threshold in 2022.
5. Our funds flow from operations was $1,133,000 in the quarter, which was net of $540,000 accrued for reclamation costs related to the previously announced oil spill which occurred as a result of vandalism in June 2022.
6. Recognized a net loss of $262,000 in the quarter compared to a net loss of $284,000 reported in the same period of 2021, reflecting the $540,000 provision for oil spill reclamation costs.
7. Capital investments of $3,368,000 primarily focused on facility and pipeline expenditures related to the Coho-1 facility and investments directed to the Cascadura natural gas facility.
8. Exited the quarter with cash of $9,425,000, a working capital surplus of $346,000 and $30,000,000 drawn on our term credit facility, resulting in a net debt position of $23,654,000.

Recent Highlights

• Daily crude oil sales averaged 1,303 bbls/d in July 2022 with a realized price of $89.52 per barrel.
• Preparation for Coho gas facility and pipeline pre-commissioning operations is underway, which will be followed by system commissioning operations to introduce natural gas from the Coho-1 well into the facility and pipeline.
• Received confirmation from the Trinidad and Tobago Environmental Management Authority that determination of our Certificate of Environmental Clearance application for development operations in the Cascadura area will be made by September 15, 2022.

Paul Baay, President and Chief Executive Officer, commented:

“This quarter represents the end of an era for the Company as a pure crude oil producer in Trinidad with the next quarter seeing a transition to a combination of oil and natural gas production from our Coho-1 gas well. Our team has maintained base production while remaining focused on our Coho and Cascadura projects including associated commissioning operations and regulatory approvals, which are both progressing. Our Trinidad team successfully implemented our emergency response plan in response to the vandalism at Fyzabad which had a minimal impact to the environment and residents affected in the area but resulted in reclamation costs which we fully accrued for in the quarter. We will continue to complete the restoration required and work with our insurance provider to identify any costs that may be recoverable under our policy.”

Touchstone Ortoire Gas
First onshore natural gas project in 20 years

Aug 14 2022

Canadian player Touchstone Exploration is excited to ramp up its production now that the Environmental Management Authority (EMA) has confirmed the environmental impact assessment is completed. The Alberta-based company is also preparing to launch the first onshore natural gas project in 20 years.

The EMA confirmed that no further information was required regarding the Cascadura Environmental Impact Assessment (EIA). The Cascadura EIA supports the company’s application for a Certificate of Environmental Clearance (CEC) to conduct development operations within the Cascadura area of the Ortoire block.

The EMA confirmed the following designated activities of the CEC have been deemed applicable to the proposed Cascadura project: exploration for crude oil and natural gas; establishment of a facility for primary or secondary production of crude oil, condensate or associated gas; establishment of a facility for natural gas or condensate production; establishment of infrastructure for pipeline systems; and establishment of infrastructure for storage of petroleum or liquid petroleum gas or their derivatives.
These represent all of the necessary activities for commercial production at Cascadura pursuant to Touchstone’s application.

Touchstone submitted the remaining EIA documentation on August 3, 2022, and the EMA responded on August 5, 2022 stating that the submitted information was reviewed and was deemed adequate to determine the outcome of the company’s CEC application.
Pursuant to statutory CEC rules, the EMA confirmed that a final CEC determination will be made by September 15, 2022.

President and CEO of Touchstone Paul Baay during a recent discussion with “DirectorsTalk Interviews”—a UK company—explained what this signals for the Cascadura well, effects on the production timeline and the process of pre-commissioning and commissioning starting at Touchstone Exploration’s Coho facility and the view of T&T Government on the imminent production from the Ortoire block.

“This is really significant for us. It is something we have been waiting for a long time. It’s basically the environmental permit for us to proceed with the project. It’s been something we have been working for about a year. “It’s a really thorough project and what it will do for us is outline the next five years of operations. Although it has been sort of painful to get us to this point, it allow us to drill wells, it allows us to build our gas facility, it allows us to build roads and pipelines so now we can really lay out a really firm and clear plan for the next five years,” Baay outlined, reiterating the process has been “very thorough and time consuming.”

On whether there are expected to be effects on the production timeline of Cascadura because of the delays, Baay remained hopeful Touchstone will achieve production between now and the end of the year, saying this will depend also on how quickly the company can move and also on the weather.

“It’s definitely been delayed and we have been pushing on two fronts. We have been continuing to fabricate various things that we could without actually going on the site. Everything is going to push forward as fast as we can. The next couple of weeks we will firm that timeline up. It may push things by a couple of months but it’s not going to push us into 2023.”

Touchstone recently announced pre-commissioning and commissioning will be commencing at Coho.

“This will be the first onshore gas in 20 years. It’s a big deal for us and also the country.”

The facility is built for about 20 million cubic feet a day, noting the initial well should be around eight to ten million cubic feet a day.

“So we will wind that out for a little while and we do have an approval to drill a second well there and we will look to get back in there at some point,” Baay said.
The company “really wants” to ramp up production at Cascudura, adding the new permit will enable to drill up to eight more wells.
“I don’t think we will need that many to fill the facility. We will drill enough to fill that up and end up about 200 million a day in 2023 and then we will look at Coho after that.”

Baay commenrted on the Government view of the announced production from the Ortoire block.

Acknowledging a lot of support Baay added, “I think there has been a lot of concern. This EIA has taken much longer than certainly we anticipated. I think a lot of people sort of questioned the authenticity of the Government but in fairness this is the first new gas brought on in 20 years and we are talking about a facility that’s about 200 million cubic feet a day.
“We had to go through the process to make sure all the public consultation was done, the design was correct. But they (Government) are really excited to get this on and we are going to do as quick as we can.”

This is an opportunity for job creation as the expertise of local contractors will be used.

Energy Minister Stuart Young met with Baay on Wednesday at the Ministry’s Head Office where discussions focused on Touchstone’s work programme and specifically the Coho and Cascadura wells.

The parties also spoke about potential future exploration and production.

Coho and Cascadura wells are conventional gas developments located onshore T&T, both of which lie in block Ortoire.

A statement from the ministry said Baay estimated both blocks will flow both liquids and gas for many years.

Touchstone Exploration is an oil and natural gas exploration and production company active in T&T.

It is currently one of the largest independent onshore oil producers in Trinidad, with assets in several large, high-quality reservoirs that have significant internally estimated total petroleum initially-in-place and an extensive inventory of oil and natural gas development and exploration opportunities.

Touchstone Exploration has achieved quarterly average crude oil production volumes of 1,420 barrels per day representing a two per cent increase relative to the preceding quarter and a one percent increase from the 1,402 bbls/d produced in the second quarter of 2021.

This was among the achievements outlined in the company’s operating and financial results for the three and six months ended June 30, 2022.

Touchstone achieved realised petroleum sales of $12,596,000 from an average crude oil price of $97.48 per barrel compared to petroleum sales of $7,586,000 from an average realized price of $59.06 per barrel in the comparative quarter of 2021.
It also generated an operating netback of $44.99 per barrel, a 19 per cent increase from the first quarter of 2022 and a 71 per cent increase from the $26.30 per barrel reported in the second quarter of 2021.

 

Touchstone sparks optimism

 

ENERGY Minister Stuart Young is optimistic as Canadian independent Touchstone Exploration drills 2 new wells onshore in the Ortoire Licence area – Coho and Cascadura.

“Looking forward to good news from @TouchstoneExp… on its onshore first gas production (Coho) and pushing for more to come by year end. Met Paul Baay and Xavier Moonan as we continue to work to increase production …”

In continuing engagements with key energy stakeholders, Young had Baay at the ministry for discussions on the Touchstone work programme and specifically the Coho and Cascadura wells, potential future exploration and production. Coho and Cascadura wells are conventional gas developments onshore and both in Ortoire block. .

“Paul Baay estimates that both blocks will flow both liquids and gas for many years to come and provided details as to planned future drillings.”

Pleased with the updates, Young expressed the continued willingness of the Government to work with Touchstone.

The Touchstone Facebook page displayed an article on the website proactiveinvestor.co.uk. This reported Baay’s pleasure that the Environmental Impact Assessment (EIA) at its Cascadura well has been completed. He was quoted as saying the impact of this news will be “huge” going forward and he was very optimistic that now good relations have been established with the Environmental Management Authority, the way has been paved for “the next ten years.”

The website cited him as reporting “good headway” on the Coho asset. “Coho will be the first new onshore natural gas project to come onstream in in TT for 20 years. In that context, a short delay shouldn’t mean very much. Nevertheless, Baay explains that the biggest challenge has been that three different parties are tied into the project and redesign changes pushed the project back by a month.”

While Baay admitted to being downbeat about timelines, he reiterated: “We are making progress.”

 

 

Tobago Trough 3D survey of untapped gas

Aug. 23, 2022

The government of Trinidad and Tobago has approved Searcher Seismic’s 6,500-sq-km Tobago Trough 3D acquisition project.

Located off the north coast of Tobago, the Tobago Trough is a Tertiary basin with shallow marine sandstones containing large gas reservoirs.

Exploration and appraisal in the late 1990s led to development of the North Coast Marine Area (NCMA) gas fields Hibiscus, Poinsettia and Chaconia, with the gas exported via Atlantic LNG infrastructure.

Subsequent development of the shore-face sand reservoirs was also successful, but there has been scant exploration in the Tobago Trough to backfill these now produced reserves.

2D seismic acquired over the basin indicates the presence of additional sequence stratigraphically controlled shoreface, channels and pro-delta fans in stratigraphic and structural stacked traps. 3D data are needed to help delineate and explore these targets. Further exploration could provide future development options for Trinidad and Tobago LNG infrastructure to increase LNG production for the growing global market.

The company plans a 6,500-sq-km wide-tow long streamer acquisition, processed through to prestack depth migration. Acquisition is scheduled for first-quarter 2023, with the dataset to be available in fourth-quarter 2023 in time for the next Deep Water Licensing Round.

Woodside Energy

An unmanned survey vessel completes a shallow-water survey for Woodside Energy.

Aug. 4,

HOUSTON – Sulmara Subsea successfully completed a pipeline inspection survey offshore Trinidad for BHP Petroleum, now Woodside Energy, utilizing an unmanned survey vessel (USV).

The WAM-V 16 (wave adaptive modular vessel) is a class of autonomous watercraft that uses unique suspension technology to improve seagoing capabilities. Prior to the project, Sulmara conducted extensive sea trials stateside to ensure peak performance of the system.

As a result, the company was able to complete the high-resolution shallow-water survey utilizing side scan sonar, a sub bottom profiler, and multibeam echo sounder without the use of a traditional survey vessel, thus reducing the overall carbon footprint for the project.

TTNGL

Trinidad and Tobago NGL Ltd (TTNGL) reported a good financial performance for the first six months of this year ending June 30 and recorded an after-tax profit of $117.5 million.

“This represents a $33.9 million or 40.6 per cent improvement over the $83.6 million profit after tax recorded for the comparable period in 2021.”

Based on the company’s results and its current cash flow position, the board declared an interim dividend of $0.35 per share for 2022, to be paid on September 14 to shareholders on the register of members as at August 26.

TTNGL said its improved performance is directly related to the share of higher profit from its investment in Phoenix Park Gas Processors Ltd (PPGPL). PPGPL share performance was buttressed by higher recognised Mont Belvieu natural gas liquids prices, which were 66.7 per cent higher than those of the corresponding period last year. The global upward trend of energy commodity prices which continued from 2021 boosted profits.

Yara

Richard de La Bastide, outgoing Yara Trinidad president, will retire effective September 2022. He will be succeeded by senior manager operations, Treveno Stenn Mowassie.

De La Bastide was part of Hydro Agri and Yara for over 30 years and was head of the company for ten years, holding positions in TT and Qatar. He also served on boards of Yara and the Energy Chamber.

Chemical engineer Mowassie was with Yara for 17 years and held senior roles in production and project management, serving in global network teams at Yara.

de La Bastide described his service at Yara as a privilege and honour, saying he was proud of the milestones his Yara colleagues and industry partners achieved together as the challenges they faced made the company stronger.

Mowassie said, “I have enjoyed working with Richard and am both honoured and humbled by the opportunity to succeed him as president. I’m fully motivated for the journey ahead and look forward to continuing to progress our business in TT.”

Bruce Hope, vice president of production for Yara North America, said, “Richard has steered the company through a challenging time in recent years and now leaves a legacy which his successor can build on for the future. “I have full confidence in Stenn to take the reins and add a new perspective to the company while staying true to the renowned vision and values of the company.”

 

State risks US sanctions over Venezuela visit

The Opposition UNC warned that government is provoking US sanctions by continued meetings with people who are already sanctioned. On a United National Congress (UNC) platform, Leader Kamla Persad-Bissessar and Oropouche East MP Dr Roodal Moonilal noted the recent visit by Energy Minister Stuart Young to Venezuela.

The MEEI confirmed he met President Nicolas Maduro and key members of the Government of Venezuela at Miraflores Palace in Caracas at high-level meetings on energy, security and other matters of national interest to both countries.

Persad-Bissessar and Moonilal questioned if a man who was indicted for drug trafficking in the US and facing sanctions was among the key people he met. Moonilal warned that such meetings could harm TT’s international relationship with the wider world.

Persad-Bissessar queried the absence of Caricom and Foreign Affairs Minister Dr Amery Browne from the meetings.

“I want to warn this government, they are playing very dangerous games. You are playing with fire. Are you trying to get Trinidad and Tobago sanctioned by the US?”

She said the threat of US sanctions was raised in Parliament before but at that time, Rowley and Camille Robinson-Regis behaved badly.

“They cussed up the late ambassador Joseph Mondello. Rowley and Camille came to the Parliament and buff up the US. They survived that time but will we survive this time, when you are consorting with known drug traffickers sanctioned by the US?”

While Rowley and Young were gallivanting all over place, the energy sector is falling to pieces under their watch.

“Stuart Young went on CNN to talk about oil and gas production when this nation is at one of its lowest-ever gas production periods. Prime Minister went Doha in February to boast about gas production, yet Train One collapsed without gas.”

She urged them to stop the travels and state the plans to restore and increase oil and gas production. Insisting that Government was not able to enjoy the current high prices of oil and gas, Persad-Bissessar said the Petrotrin refinery was now earning zero.

“Rowley complaining about scrap-iron dealers when you’ve taken one of the greatest assets of our country – the Petrotrin refinery – and turned it into a scrap heap. Over 100 years of proud history. You turned an entire refinery into scrap metal. And did you shut it down to protect your friend?”

She called for an update on the refinery and the status of the American company Quanten LLC’s expression of interest in it.

“Where is Quanten? We know this company is operating somewhere in California, but when we checked it was in somebody’s house. We know the Prime Minister also went to California and spent almost a month there. But when the Opposition raised questions on this company the deal went sour.”

 

 

NGC generates profits from world market

Aug 23 2022

The NGC Group of Companies hailed a massive $4.7 billion dollar turnaround in its fortune as it recorded an after tax profit of TT$2.6 billion for the financial year ended December, 31, 2021. The after-tax windfall profit represents a significant improvement in performance compared to 2020 when it recorded a loss of TT$2.1 billion.

Revenue stood at TT$23.6B, an increase of TT$12.2B over revenue of TT$11.4B for 2020. The Board of Directors said revenues and margins benefited from the rebound in commodity prices as the global prices of ammonia, methanol, liquefied natural gas (LNG) and natural gas liquids (NGLs) soared by 190%, 92%, 911% and 112% respectively.

The NGC Group noted several operational achievements over the course of the year.

“The National Gas Company of Trinidad and Tobago Limited (NGC), was unflagging in its efforts to secure the supply and sale of natural gas and finalised gas contracts after negotiations with DeNovo in the upstream, and Trinidad Nitrogen Company Limited (TRINGEN) and Methanol Holdings (Trinidad) Limited (MHTL) in the downstream. The Company increased its shareholding in Block 3(a) from 11.41% to 31.54% with the acquisition of Heritage Petroleum’s Non-Operated Joint Venture (NOJV) participating interest.”

The NGC Group pursued international growth through the continuation of its remote management of its first international technical services project in Ghana which successfully delivered on all planned milestones.

Subsidiary Phoenix Park Gas Processors Ltd (PPGPL) saw significant returns on its international investment following the purchase of the NGL marketing assets of Twin Eagle Liquids Marketing LLC in 2020.

PPGPL’s North American subsidiary delivered a robust performance in its first full year of operations.

In its financial statement the Group highlighted another achievement in 2021 with the installation by National Energy Corporation of a solar array rooftop to power operations at the multi-fuelling station opened at Preysal. The Memorandum of Understanding (MOU) with Kenesjay Green Limited, to examine the feasibility of sustainable hydrogen economy and an MOU with the Solid Waste Management Company Limited (SWMCOL) to explore commercialisation of landfill gas were notable accomplishments.

This presents an ideal opportunity for the state to divest this asset and create a share-holding democracy to provide dividend income to citizens.

 

 

NGC, NewGen explore hydrogen

Aug 05 2022

The National Gas Company of Trinidad and Tobago Limited (NGC) and NewGen Energy Limited (NewGen) deepened their partnership to cooperate on enabling a sustainable hydrogen economy for the energy sector.

On August 4 th 2022, the companies signed a non-binding Heads of Agreement (HOA), which outlines the framework for the establishment of Binding Definitive Agreements between the relevant parties, once acceptable terms can be reached.
The HOA follows the signing of a Letter of Intent in May 2022, which expressed NGC’s intention to work collaboratively with NewGen to further evaluate the development of NewGen’s hydrogen production facility.

This evaluation rapidly progressed and the signing of this HOA includes commitment from NGC and NewGen to jointly establish working teams that will engage key related public and private stakeholders in this ground-breaking project development of a cleaner energy supply.
The HOA is a further milestone that advances the transition to a lower carbon future through low-carbon and green hydrogen production. It is the next key step in the progression of the development of the $250M USD NewGen hydrogen production facility in Point Lisas.

Noting the significance of the HOA, NGC President Mark Loquan commented, “The NGC Group has been progressively demonstrating its commitment to lead the energy sector of Trinidad and Tobago into the new energy future. NGC is committed to collaborating with NewGen and all critical stakeholders in developing a low-carbon future. We are well-positioned to support the country’s pursuit of a greener hydrogen economy, in a similar role that NGC played in the establishment of T&T’s existing world-class economy with natural gas. Agreements such as this HOA with NewGen Energy, coupled with the right partnerships, frameworks, and policies, has the ability to launch Trinidad and Tobago into a position of global leadership in clean energy.”

Philip Julien, Chairman of NewGen. said,
“NewGen is delighted that our partnership with NGC continues to progress apace. We are confident that our continued collaboration with NGC will lead to a further acceleration of the provision of Greener Hydrogen to Trinidad and Tobago, and that the NewGen Project is advanced towards a final investment decision consideration as soon as possible. We look forward to engaging with NGC and all relevant stakeholders, as we collectively contribute to the transition and decarbonisation of Trinidad and Tobago’s energy sector.”

Also attending were Damien Havard, CEO, HDF Energy, Anthony Holder, Technical Director, NewGen, Thibault Menage, VP Caribbean, HDF Energy.

 

 

Heritage pays $832M in tax

Aug 16 2022

Heritage Petroleum paid $832 million in taxes for the first six months of the 2022 financial year ended March 31, reducing its after tax profit when compared to the same period last year. The $823 million was an increase of $816 million from the comparative period last year when $15.97 million was paid.

Chairman Michael Quamina noted, “These allowances, which were previously available due to the vesting of the Exploration and Production assets in 2018 from Petrotrin, are now no longer available as a deduction against profits. As a result, Heritage is now subject to an increased income tax expense of $832 million compared to $16 million in the same period for 2021,”

Heritage recorded a 50 per cent increase in revenue over the comparative period. Revenue for the six months period ended March 31 was $4.5 billion.

Contributing $2.3 billion in Supplementary Petroleum Tax, Petroleum Profits Tax, royalties and levies to the Government due and payable for the period (2021: $321 million) brings the total contribution to the national treasury to $6 billion since Heritage began operations on December 1, 2018. The first six months of fiscal 2022 show that Heritage continues to generate significant value by executing its strategy and delivering strong results in a disciplined financial framework.

2022 World oil market prices show WTI rose from $76 in January to $114 in May, boosting Heritage coffers.

Trinidad & Tobago is thus rolling in revenue from petroleum and benefits from employment of citizens in IOCs BP, Shell, BHP, EOG and the rest of the energy sector.

UWI degrees in petroleum technology are sponsored by the resilient industry which continues to fund the Faculty of Engineering. Highly paid graduates man oil and gas facilities in exploration, production, refining of petrochemicals, marketing and shipping, contributing substantially to the economy. Ample income can fund repairs to ramshackle infrastructure and investment in food as starvation looms and joblless, homeless, hapless citizens cower amid rampaging crime and murders approach 400. Now profitable Heritage can be privatised to deliver dividends to citizens.

 

 

THE GEOLOGISTS’ MANTRA, “THERE IS OIL IN THE AREA!!”
EOG bites the dust in Trinmar acreage

Aug 16 2022

EOG Resources encountered a dry hole in its first exploration well in its Trinidad Northern Area (TNA).

Exploration well CT-1 was crucial in confirming a view that could have potentially added tens of millions of barrels in recoverable reserves. The well had a target depth of 13,400 feet but was abandoned at 12,992 feet after failing to find any oil or natural gas. EOG tried to prove a theory that below the petroliferous Pliocene rocks found in the former Trinmar, deeper drilling into Miocene Herrera rocks.would find oil.

The well was drilled on a major geological feature, the Southern Anticline, which extends from Venezuela in an east/west direction, through the Gulf of Paria and into onshore Trinidad. This produces oil in the Bonasse field in the South West Peninsula, onshore in an area operated by TED.

The EOG well was located on the anticline and would have penetrated the Pliocene sandstone reservoirs which produce hydrocarbons in the Soldado fields in the Gulf of Paria.

The well, however, went much deeper than these Pliocene reservoirs in search of oil in Miocene/Herrera sandstone reservoirs, target for the recent discoveries by Touchstone onshore . EOG was testing to find similar discoveries in the Gulf.
Sources fear that absence of deeper reservoirs could put a damper on further exploration for deep reservoirs in the Gulf of Paria. The company confirmed the dry hole.

“The exploration well we recently drilled offshore the southwest of Trinidad was determined to be unsuccessful. The well was exploring older reservoirs below existing producing sections and reached targeted depth. We are integrating the well results with the seismic data and will continue to interpret the data.”

On March 24, 2021 SOC Heritage Petroleum Company Ltd and EOG Resources Trinidad Ltd signed an agreement for the farm-in and joint operatorship by EOG in Trinidad Northern Areas (TNA) Soldado fields of Heritage. Under the agreement EOG was expected to explore and develop any discoveries on the block. The specific area is about 15% of the TNA Licence Area and the surrounding areas that have an extensive history with the three major Soldado fields, the Main, East and North Soldado Fields, some of the earliest major discoveries in the Gulf of Paria between 1954 and 1965.

Energy Minister Stuart Young was keeping his fingers crossed that the exploration well would be successful to lift crude output. He told the Geological Society of T&T (GSTT) :-

“As regards its offshore acreage, Heritage signed a farmout agreement and joint operating agreement with EOG Resources Ltd for exploration and development of its East Field in its Trinidad Northern Area.
“The farm-in area comprises 14,870 hectares over the wider Trinidad Northern Area E&P Licence area comprising approximately 97,000 hectares. EOG has 65% interest in the venture and is the operator. The first exploration well was spud on June 10, 2022 and drilling is projected to be completed in 30 days. We are looking forward to good results and increased oil production from this venture.”

Of significant exploration for deeper oil , the most notable was in the Cretaceous in the early 1990s when Exxon embarked on a major exploration programme to test Cretaceous reservoirs but was unsuccessful with three dry holes. Exxon was finally rewarded with giant fields in the Cretaceous play of Guyana since 2015.

Geologist Dr Krishna Persad was absolutely sure that the oil is present in the deeper horizons of the Herrera rocks. There is a risk that EOG simply drilled in the wrong place, in another major blow to the energy sector

“I know.., I don’t think, I know that there is oil below the Pliocene and in the Herrera horizon. Maybe it is unfortunate for them that they drilled in the wrong place because in the South West Soldado field there is a well that was drilled that went through 2000 feet of Herrera pay but it was tight and may have been heavy.
There is a real risk that in the deeper horizon in the Gulf of Paria the oil could be heavy .

“I looked at where this well was drilled and it seems to be within a trend where the mid to lower Miocene reservoir should have been present and even if the structure was wet that does not negate the potential of the deeper reservoir.We know the source rock is the Cretaceous and it is present and we know that we are in the oil window and that migration has occurred from the source rock to the Pliocene and the structures in the deeper reservoirs will be charged and there is a risk that the charged rocks may have had seepage and migration of the light ends and it could be heavy oil due to the loss of light ends .”

Persad, a perennial optimist, is “110 per cent convinced that the Herrera pay exists below the Pliocene in the Gulf of Paria.” as all along the Southern Range Anticline Blocks Herrera oilsands are being ejected by mud volcanoes. “I have analysed the oils and they were originally light oils in both the mud volcano, by the Bonasse field and the one further East. It is to the West as well. In Eastern Venezuela there is an oil field that produced 50 million barrels of oil from the Herrera on trend. So there is no issue about the if, it’s just unfortunate for them the structure they drilled was wet. I am saying in the Herrera trends onshore and extending west into the Trinmar acreage and further west into Venezuelan waters there is still significant oil to be found.”

Energy Chamber seeks promised tax reform

Aug 23 2022

The Energy Chamber reminds Government to urgently reform the level of taxes paid by upstream energy companies. During last year’s national budget statement, the Minister of Finance announced that the Government would undertake a comprehensive review of upstream fiscal terms.

This assertion was backed up by the Minister of Energy at the Energy Chamber’s annual policy review forum, where he announced that the review would be completed by the end of the first quarter of 2022.
As of July 2022, this review has not been completed.

The Chamber “strongly encourages the Government to avoid any further delay in reforming the upstream fiscal terms in Trinidad & Tobago. The time to act is now.”

The Chamber argued there was little time to waste as the revision was especially needed given the continued push for net-zero by 2050, and “the window for investment in gas and especially in crude oil production is narrowing every day.”

“Across the world, oil and gas companies have remained very disciplined in how they are allocating capital to upstream investments even with the current high global oil prices. When oil and gas companies are assessing investments, they do not base their decisions on today’s oil and gas prices, but rather on the future long-term projected prices. Companies want to make sure the investment makes sense at prices under US$50 per barrel as well as at prices over US$100 per barrel.”

“Unfortunately, in Trinidad & Tobago the structure of the upstream fiscal regime, especially for oil, means that it is extremely difficult to be profitable after-tax once prices are in the US$ 50 range. This is primarily because of the way in which royalties (on oil and gas) and supplemental petroleum tax (on oil) are calculated. While this does not impact investment in the acreage under production sharing contracts, it does impact potential investments in acreage under the Exploration & Production (E&P) licensing regime.”

The Chamber stressed the current high-price environment opens a significant opportunity to restructure the tax system and to reform how these top-line taxes operate.

”Supplemental petroleum tax (SPT) was originally introduced as a windfall tax to ensure that government benefited from the upside in times of high oil prices. Unfortunately, over the decades the $50 per barrel price trigger point at which SPT becomes payable has remained the same while inflation has marched ever onwards. US$ 50 per barrel would now be considered a low price. By returning SPT to its original windfall focus the Government would be able to still collect significant revenue in the current high price environment, but at the same time give oil and gas companies the assurance that they can still be profitable in the future if prices fall.

Likewise, the chamber argued, changes to the gas royalty regime can be structured so that companies will pay higher royalty rates on larger and more profitable fields and lower rates on smaller and more marginal fields. This change would mean that exploration risk for gas production would be reduced and help spur on the much-needed investment in new gas production.”

While the Government has shown itself open to negotiating revised production sharing contract agreements to stimulate new investment, T&T needs to do the same with the overall fiscal regime.
With the current onshore bid round using the E&P licensing regime model, changes to the fiscal terms could help stimulate much needed interest in this acreage.

“The recent success of onshore exploration shows that there is still potential for new finds and new production in this mature acreage, but this will only be realised if companies bid for the acreage and allocated the needed capital investment. The government has repeatedly stated that it is prioritising increasing oil and gas production. They now need to follow-up these words with action. Time is running out and the moment to act is now.”

 

 

Economist forecasts subsidy rise

Aug 17 2022

Economist Marla Dukharan predicts fuel and electricity subsidies will likely have to rise due to higher than budgeted oil and gas prices. In her Caribbean Economic Month Report for August, she said,

“Higher than budgeted Oil & Gas prices means government would likely have to contribute to the Heritage and Stabilisation Fund and the cost of the fuel and electricity subsidies will rise, making the final effect of higher O&G prices on the deficit mixed.”

The economist noted the recent positive adjustment of Trinidad and Tobago’s credit rating by S&P was based on expected revenue increases from high energy prices. She lamented sub- optimal productions levels.

“The outlook for S&P’s BBB—credit rating for T&T was revised to stable from negative, based on an expected increase in fiscal revenue from high energy prices, which should support a narrower deficit. While O&G prices are above budget estimates, production remains far below targets.

Average WTI prices for Jan-Jul were USD101.3/bbl vs a budget estimate of USD65/bbl, and average Henry Hub prices were USD5.58/mmbtu vs budget of USD3.75/mmbtu. January-June 2022 oil production averaged 31% below budget at 59.16 kbpd and gas production was 22 per cent below target at 2,612 mmscf/d.”

While Food prices rose 7.8 per cent year on year in June, subsidies on fuel and electricity kept those prices down, dampening overall inflation for June to 4.9 per cent. Unemployment was 5.1 per cent for the first Quarter of 2022 vs 4.2 per cent in the first quarter of 2020 while the labour force declined 2.2 per cent in the first quarter of 2022 vs Q1 2020.The IMF forecast growth of 5.5 per cent in 2022, 3 per cent in 2023, then averaging 1 percent to 2027. According to the report, a balance of payments crisis is expected to develop this year, absent significant reforms and economic recovery.
WIth a wave of energy profits, state assets can be privatised to boost income for citizens amid rising prices.

 

 

Evangeline Pardasie thrives in energy sector

The president of the Society of Petroleum Engineers, says the oil and gas sector will continue to exist in the form of renewable energy. Evangeline Pardasie, 23 overcame rejection for sixth form from secondary schools after CSEC at 16 and courageously pursued career in the oil and gas industry. She joined the Kenson School of Production Technology, San Fernando, inspired by her interest and love for the oil and gas industry and earned an international vocational qualification as an oil and gas process technician from KSPT.

She joined the Society of Petroleum Engineers (SPE), where she served as a secretary for the 2015-2016 academic year. At the University of TT (UTT) she earned a national engineering technician diploma in petroleum engineering and a Bachelor of Applied Science degree in petroleum engineering.

“Throughout my academic journey at UTT, I have been fortunate enough to have served on the UTT SPE student chapter board on multiple occasions. I have previously served as secretary in 2018, and I served as president for three consecutive years, 2020-2022. Furthermore, I was also part of the SPE sustainability programme sub-committee and the SPE diversity and inclusion sub-committee. In 2019 and 2021, I was honoured to have been awarded the SPE bursary award.”

This bursary award is a loan agreement between the SPE and the Ministry of Education. Pardasie said she always liked being responsible for the economics of a country and the environment.

“The world will always require energy, and petroleum engineers are responsible for locating, recovering and maintaining the world’s oil and gas supplies. They use cutting-edge technology to develop new methods of oil discovery and drilling. I desired a position where what you do is critical to today’s economies. Petroleum engineers ensure the safety of people, communities, wildlife and the environment during the drilling process.”

She admires the number of power petroleum engineers TT has, since they are responsible for improving efficiency in the sector and making prices more affordable for customers.

As president, Pardasie guides the student chapter so it can develop and serve the students of UTT and even the community. She is its primary spokesman by planning and co-ordinating student chapter meetings and interacts with sponsors to keep them informed of SPE projects, objectives and events.

She also works full-time in digital marketing and administration for a group of companies in the industry. She began two years ago after she had finished her first year of university and saw the opportunity as a unique one to be part of the industry.

“I’ve gained extensive experience and was exposed to different areas of work such as health, environment, safety and quality (HESQ), accounting, wire rope and rigging, scaffold and access solutions, industrial oil and gas products, equipment rental, marketing and general day-to-day operations and administration.”

She undertakes community service and charity work with Christmas toy drives, food hampers to families in need and donating stationery to Claxton Bay Senior Anglican Primary School.

“Ever since I was a little girl, I’ve always had a burning passion and desire to help others, and make a difference and impact in their lives. It warms my heart just to see someone smile or their face light up because you were able to do something nice for them. I’ve always believed that perseverance and passion make a goal worthwhile to pursue.”

Evangeline inspects a valve on a pumping jack. – M. Hamilton

Her NGO – the EVA Foundation – established in November 2020. aims to provide a sustainable approach to solving some of society’s biggest challenges and she considers it her biggest accomplishment. She prefers motivational books and natural wonders.

“I enjoy reading books that inspire, motivate, and promote growth and development. I also enjoy spending time with family and friends, playing with my dog and being outdoors in nature.”

Pardasie offered advice to those who may be sceptical to become a petroleum engineer and said the first step is to never think it is impossible to succeed in the industry.

“If God puts a gift in you, there is more than enough room for you. Every industry has highs and lows, and the oil and gas industry is no exception. Many people are unsure whether it is worthwhile to pursue a career in the oil and gas industry, particularly petroleum engineering, because the industry is known to be cyclical with extreme highs and lows; I was in the same boat at one point. Though we are transitioning to renewable energy, it is clear that the oil and gas sector will continue to exist, though in a different form.”

People should ask themselves how they can better position themselves for the future of the industry.

“My best advice is to strive to be the best in whatever field you choose. Put in the effort and diligence. Don’t just study to pass an exam; make sure you can ‘walk the walk’ as well as ‘talk/write the talk’ – knowledge, understanding and application all work in tandem.”

Pardasie addressed girls and young women now finding their groove in the industry and said once the will is there they can make a career they love out of it.

“If something interests you, ask if there are opportunities to get involved. There’s no one trajectory. We all have our callings on this planet and I urge you to not stop until you find yours.”

 

 

Government depleting businesses with taxes

Aug 13 2022

Joel Ramnath said taxes paid by the business community affect the cost of products, which resulted in many small businesses folding, even amid growth for some businesses. Ramnath said the business community, which drives the economy, is experiencing an uphill battle.

“Government agencies don’t make profit, so they don’t contribute to economic growth, while businesses that do are being taxed as if being taxed to lift a country out of poverty.”

Ramnath said businesses are currently paying 25 per cent in value-added tax (VAT).

“Every item imported requires payment of customs duty and VAT, (and) when it goes on the shelf, the customer also has to pay 12.5 per cent VAT on the already-taxed product. So basically, people’s supermarket bills could be half the cost if we did not have to pay the government 50-55 per cent in taxes. Imagine, the government charges duty, and VAT on a tax.

“Most people don’t know they are paying 50 per cent tax on goods, they think the supermarkets are making all the money. So there is duty tax, VAT, insurance tax and freight charges, after which the retailer has to mark up and add another tax.”

Ramnath said most people end up having 30 per cent, on average, for use at their discretion after paying taxes.

“Every dollar you think you make, after paying all the taxes, you take home 30 per cent of what you think you are making. And the government has no idea how to stimulate the economy and the business community does, but the government is drying up businesses by taxing them aggressively.”

The businessman believes half the problem with the struggling economy has to do with politicians, and the other half the people.

“Politicians should be paid based on performance at the end of the year, like most people, and the people should educate themselves so they can make informed decisions when voting. Maybe then the government would see to the interest of the people and the country.”

The owner of Gran Couva Eco Lodge said the government does not only fail to help boost the tourism sector but rather contributes to challenges faced by stakeholders.

“The Minister of Tourism is my neighbour and he has shown no interest in how businesses like the lodge may attract eco-tourists. Even the roads – I had to repair the roads after his contractors caused damage to the roads. The government has no idea what tourism is and they seem too embarrassed to ask for help.”

Ramnath is concerned as various sectors are being depleted.

“We no longer have oil money and we have no other sectors that can help our economy grow. We can’t have people who lack vision leading us. We work hard, and the government taxes us. Until we take our head out of the sand and hold them accountable, the country won’t move forward.”

 

 

In the Doldrums

Like Admiral Christopher becalmed in the Doldrums, off the coast of Africa notorious for its lack of winds where sailing ships drifteed in calm and heat, so the citizens of TT are stymied, as a businessman reflects on the hoisting of the flag on August 31, 1962.

Balliram Maharaj is disappointed with the way T&T evolved over the last 60 years. He blames a lack of moral values and economic mismanagement by successive governments for the “sad situation” T&T faces today.
As the petrostate prepares to celebrate 60 years of Independence from Britain, Maharaj shared memories of that historic moment in 1962 and reflected on what has happened since then.

The CEO of ADM Import/Export Distributors, former president of the Supermarket Association of T&T (SATT) and a prominent member of the business community was 20 years old and clearly remembers that day and the hoisting of the flag.

“I remember August 31, 1962, as if it were yesterday. A couple of friends and I went to the raising of the flag with a van. After we went to St James to drink and lime. The cost of the bottle of rum and chaser at that time was $6 and we couldn’t even afford it. We had to raise money to buy those drinks,” he recalled.

Those were optimistic times for a newly independent nation but he laments that T&T has failed to live up to the hopes and dreams of his generation. They expected the country to move beyond the poverty of the colonial era and build a new, united nation.

“I was already into business at that time. I was gardening and selling. Fig was a cent and a half a pound. I used to sell tomatoes for ten cents a pound. We use to transport the produce from the estate in Toco to the market,” he said.

Maharaj is saddened that after 60 years of Independence, the old values are gone and in every sphere of society there is controversy and a lack of respect.

“Are we in a better position than we were 60 years ago? We had religion and culture in those days. We played cricket and football as one. When the tit for tat in politics came in that was diminished. In the past, people belonged to other political parties but they maintained respect for each other. Those days are gone. People will do anything to scandalise each other’s names. We are now using religion and politics to divide each other.”

Society has lost respect for women. Referring to recent verbal attacks he said: “There is no respect for women. They did it with Kamla Persad-Bissessar and now they are doing it with Sharon (Clarke-Rowley). They are both mothers,.. sisters, ..aunts and grandmothers. My wife died last year and I know what that loss is of an important woman in your life.”

He expressed concern about the level of hate and anger in society and said people have lost all values.

Lack of economic diversification was regrettable. Commenting on the economic crises, Maharaj contended had the economy been diversified, citizens would have been better prepared for the challenges.

“We used to have a sugarcane factory here and it disappeared. We had the train line and that is gone. We can’t get sugar, we can’t get enough corn to grow enough chickens, we can’t get every type of peas we want from split peas to channa. The reason Trinidad and Tobago did not pay attention to food security and agriculture is that we got excited by the oil boom in the 1970s and after. I was in Guyana about five or six years ago and I told their leaders not to abandon agriculture when their oil boom starts, not to make the same errors as Trinidad and Tobago.”

Big issues globally are food security and access to natural resources like water and T&T failed in those areas.

“COVID-19 did not do justice to the lack of agricultural policies. When the pandemic started and it shut down places it reduced food supplies by 50 per cent. After, when the population grows by two or three per cent, the food shortage will worsen,” he said.

Into the future, the country can change but new leaders and ideas are needed for that to happen.

“We need people who have creative, intelligent and innovative ambitions.”

Large emerging economies of China and India are examples T&T can follow. Both were considered poor by western countries but with economic reforms, both are rapidly developing.

“Look at where India is today. I remember going to India with former Prime Minister Basdeo Panday and we visited the Indian city of Bengaluru. Today it is one of the world’s top technology cities. Over 50 per cent of India’s income is from technology. India is also a top food producer. We have a lot to learn from the Asians.”

He warned, “Trinidad and Tobago is heading down a slippery slope. We must change the course the country is on.”
Like Columbus, TT may yet enter a new world of discovery and prosperity by changing direction.

 

 

ORTT for Dana Seetahal

Eight years after the shocking assassination of Dana Seetahal, SC, a former independent senator, prosecutor and magistrate, president of the Criminal Bar Association Israel Khan, SC, in a letter to Attorney General Reginald Armour SC, dated August 5, said Seetahal is being nominated for the highest honour, the Order of TT (ORTT). on the 60th anniversary of independence. The ORTT may be awarded to any person (citizen as well as non-citizen) who has rendered distinguished and outstanding service to TT. It may be awarded posthumously.

Seetahal, 59, was shot dead along Hamilton Holder Street, Woodbrook on May 4, 2014, en route to her One Woodbrook apartment, by an organised gang. The 10 men accused of her murder are yet to face a judge and jury. Her younger sister, Susan Francois, the former head of the Financial Intelligence Unit and Registrar General, said the family is grateful and appreciative of the recommendation by the Criminal Bar Association.

“We look forward to some positive feedback on it.”

The association also recommended posthumous awards Hummingbird (Gold) medals for Allan Alexander, SC, Desmond Allum, SC, and Theodore Guerra, SC. It recommended that judicial hubs be renamed in honour of former chief justice and president of the Caribbean Court of Justice Michael de la Bastide, QC, former attorney general Karl Hudson Phillips, QC, Frank Solomon, SC, and Seetahal in keeping with the government’s plan to rename streets, parks and other public spaces.

Francois said any acknowledgement of her sister’s efforts to improve the criminal justice system will be appreciated. Seetahal was awarded the Hummingbird (gold) medal posthumously in 2014 but Francois said her sister was deserving of the highest award and no one collected the award on 52nd anniversary of independence.

The association said while Seetahal was awarded the Hummingbird (gold) medal in 2014 “we believe that she paid the ultimate price in pursuit of her work and as such worthy of being posthumously granted the ORTT.”

There are five categories of national awards with the ORTT (formerly the Trinity Cross Medal of the Order of the Trinity) in gold being the highest, followed by the Chaconia Medal (gold), (silver) and (bronze); the Hummingbird medal (gold,) (silver) and (bronze); the Public Service Medal of Merit (gold), (silver) and (bronze) and the Medal for the Development of Women (gold), (silver) and (bronze).

According to the Office of the President, every citizen, on being awarded a national award, becomes a member of the distinguished society of TT of which the President is chancellor. Every non-citizen, on being awarded a national award, becomes an honorary member of the distinguished society. Only citizens of TT are eligible for the award of the Public Service Medal of Merit. Non-citizens are eligible for all other awards. All national awards may be awarded posthumously, but a deceased recipient does not become a member of the distinguished society.

The National Awards Committee, headed by Chief Justice Ivor Archie, oversees the nomination process and investigates the nominees before making recommendations to the Prime Minister. Any person or organisation may submit a nomination to the committee, of a citizen for a national award.

The President confers the awards, “on the advice of the Prime Minister given after consideration of the recommendation of the advisory committee.” The awards are made “by instrument signed by the President and sealed with the seal of the Order.” The President hosts the National Awards Ceremony annually on Republic Day, September 24, according to the Office of the President. It was previously held on Independence Day, August 31.

Inspiration on the Seas – 
Sabeena Poonwassie navigates new horizons

by Women Empowerment Contributor

Sat Aug 27 2022

Nekisha Alexander-Caesar

 

Being the sole female on a 250-foot vessel might seem intimidating but Sabeena Poonwassie has no desire to abandon ship. The 25-year-old sailor joins the ranks of less than 2% of women holding roles in this industry. Sabeena noted that this can seem overwhelming in the initial phases.

She says “It takes a bit of strength to hold your own space on a team of men, but it’s not impossible.”

Sabeena spends her days keeping a navigational watch at sea while managing the deck operations and overseeing cargo operations. She is also responsible for the lifesaving and firefighting elements of the vessel.

The poetry of a ship harmoniously dancing with the waves might have given inspiration to the sailor who once aspired to be a writer. However, she was determined to find both success and happiness in her career and found it difficult with traditional career choices. The idea of working on the water seemed like an adventure for Sabeena and it was also a huge plus to be able to work and travel simultaneously. So, she chartered her journey to live the life of a Seafarer.

TRANSITIONING FROM  LAND TO SEA

With dreams of sunkissed skin and starry nights under the moonlight calling, Sabeena enrolled in an eight-week program in 2014. The program was an initiative by the Maritime Industry Development Corporation aimed at both the shore based and sea going aspects of the marine industry. At the end of the program, Sabeena was completely enamoured with the seagoing aspects of the maritime industry and decided to pursue a career on the water. She began sailing as a cadet in 2019 to obtain the hands-on training required for her license.

Shortly after she returned from sea her father passed away quite suddenly. This was an incredibly low and challenging time for Sabeena. The idea of going back to sea was depressing and she felt guilty for the time she missed before the passing of her father. She soon learned that her job took her away for long periods of time and limits connections with loved ones. While she struggled with this reality at the time, she was encouraged by her family to keep pursuing her career.

PERSEVERANCE AND PROGRESS

It took Sabeena eight years to get a license and many times, she thought to give up and try something else. But she truly wanted to sail and decided she would continue working towards her goal despite obstacles. She advises “In a career like this you have to be able to accept failure, overcome obstacles and persevere regardless.”

Just one month after being licensed, Sabeena got an excellent job opportunity. She is currently sailing on a Dynamic Position Class 2, Offshore Supply Vessel. The sailor plans to upgrade her license to Chief Mate Unlimited and work up to the rank of Captain. When off-vessel, Sabeena enjoys cooking and baking. She is also obsessed with animals, having spent the majority of her time before sailing working at a Veterinary clinic. She likes reading nonfiction and self-help books and is considering taking up golf.

ABOVE BOARD

Her advice for women interested in the marine industry, when plotting your course be sure to “do your research and make a plan for what you want to achieve. Make a plan for when the first plan falls through.”

Surrounding yourself with people that support you and seek mentorship from those you hope to emulate in your own careers is another tip offered by the sailor. She notes that in this industry perseverance and grit are two of the most valuable qualities to possess.

She adds “Speak up for yourself and push for the opportunities you deserve but always do so with integrity. Life is not a race or a competition, and comparing yourself to others with hurt you in the end.” Mental wellness is also very high on Sabeena’s agenda for those women already in the industry. “Take care of yourself both mentally and physically, burn out is very real and hard to overcome.”

A few highlights on Sabeena

• ↓Member of Women in Maritime Caribbean (WIMAC) Association and the recipient of the WIMAC Woman on the Rise award

• ↓United Kingdom Maritime Coastguard Agency Licensed Officer of the Watch (OOW)

• ↓Graduate of The University of Trinidad & Tobago Centre for Maritime and Ocean Studies

• ↓Dynamic Position Operator (DPO)

• ↓Youth Council Member of the UK based NGO – The Nautical Institute