Touchstone Announces Total Proved Plus Probable Reserves of 17.8 Million Boe

CALGARY, ALBERTA--(Marketwired - March 24, 2015) - Touchstone Exploration Inc. ("Touchstone" or the "Company") (TSX:TXP) announces the results of the independent December 31, 2014 reserve evaluation (the "Reserves Report") with respect to the Company's crude oil and natural gas reserves in Canada and the Republic of Trinidad and Tobago ("Trinidad"). Amounts herein are in Canadian dollars unless otherwise stated.

Touchstone's year-end reserves were evaluated by independent reserves evaluator GLJ Petroleum Consultants Ltd. ("GLJ") in accordance with definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook and National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). The reserves estimates set forth below are based upon GLJ's reserve report dated March 11^th, 2014.

Reserve Report Highlights

• Total proved plus probable reserves of 17,831 Mboe (gross) and 13,267 Mboe net after royalties (99.5% oil). Total proved reserves were 10,497 Mboe (gross) and 7,671 Mboe net after royalties (99.6% oil).
• Total proved plus probable net present value before tax (10 percent discount rate) of $395 million ($208 million on a total proved basis).
• Total proved plus probable net present value after tax (8 percent discount rate) of $191 million ($103 million for the total proved case).
• Total proved plus probable future development capital is estimated to be $110 million, an increase of $97 million over 2013 mainly due to the increased development capital associated with Trinidad assets acquired in 2014.
• Reserve life index of approximately 17.9 years for proved plus probable reserves.

Summary of Canadian Operations and Reserves

In Canada, Touchstone has successfully focused on transitioning the Company's operations from a research program using in situ combustion technology to a true exploration and production operation capable of yielding positive economic returns. The Company continues to review all Canadian operations to ensure that they are able to provide commercially reasonable returns during times of depressed commodity prices.

Touchstone has also established a significant working interest position in Saskatchewan's highly economic Viking play and, in total, the Company now has a working interest in 19.5 prospective sections within the Viking oil fairway near Beadle, Saskatchewan. Given the high levels of industry activity in the Beadle area, the Company was able to book both proved and probable reserves on the recently acquired Viking acreage based upon the results of offset production. These lands remain highly prospective and the Company is looking forward to an active drilling program when commodity prices rebound. In the interim, the Company is obtaining the necessary permits and establishing programs required to execute a future Viking program in a timely and efficient manner. As a result of these Canadian based initiatives, the Company has:

• Increased total proved plus probable reserves in Canada by 107% to 3,046 Mboe (97% oil weighted).
• Increased total proved reserves by 64% to 1,536 Mboe (98% oil weighted).
• Replaced 1,169% of 2014 Canadian production with 1,718 Mboe of proved plus probable reserve additions.
• Replaced 506% of 2014 production with total proved reserves additions of 744 Mboe.
• Total proved reserves represents 50% of total proved plus probable reserves.

Summary of Trinidad Operations and Reserves

In Trinidad, the Company acquired total proved plus probable reserves of 11,697 Mboe and total proved reserves of 7,520 Mboe through the May 13, 2014 business combination between Petrobank Energy and Resources Ltd. and Touchstone Energy Inc. (formerly Touchstone Exploration Inc.). Subsequent to the acquisition, the Company drilled 11.16 net wells in Trinidad and, as a result, the Company has:

• Increased total proved plus probable reserves in Trinidad by 26% to 14,786 Mboe (100% oil).
• Increased total proved reserves by 19% to 8,962 Mboe (100% oil).
• Replaced 883% of 2014 Trinidad production with 3,483 Mboe of proved plus probable reserve additions.
• Replaced 465% of 2014 production with total proved reserves additions of 1,836 Mboe.
• Total proved reserves represents 61% of total proved plus probable reserves.
• Achieved estimated total proved plus probable finding, development and acquisition costs of $8.23 per barrel ($10.85 for total proved reserves), including changes in future development capital.

The following tables provides a summary of information based upon the Reserve Report:

December 31, 2014 Reserves¹

		Gas (MMcf	)	Oil (Mbbl	)	Total (Mboe	)
Canada
Proved
	Proved producing	-		413		413
	Proved non-producing	-		64		64
	Proved undeveloped	222		1,022		1,059
Total proved		222		1,499		1,536
Probable		265		1,466		1,510
Total Proved Plus Probable		486		2,964		3,046
Trinidad
Proved
	Proved producing	-		5,475		5,475
	Proved non-producing	-		46		46
	Proved undeveloped	-		3,441		3,441
Total proved		-		8,962		8,962
Probable		-		5,824		5,824
Total Proved Plus Probable		-		14,786		14,786

1	Amounts may not add due to rounding.

Reserves Reconciliation¹

		Canada				Trinidad
		Proved (Mboe	)	Proved Plus Probable (Mboe	)	Proved (Mboe	)	Proved Plus Probable (Mboe	)
December 31, 2013		939		1,474		-		-
	Acquisition2	-		-		7,520		11,697
Opening balance plus acquisitions		939		1,474		7,520		11,697
	Drilling extensions	629		1,404		1,349		2,404
	Infill drilling	-		-		170		230
	Technical revisions	115		315		317		649
	Improved recovery	-		-		-		200
	Production	(147	)	(147	)	(395	)	(395	)
December 31, 2014		1,536		3,046		8,962		14,786

1	Amounts may not add due to rounding.
2	Represents May 13, 2014 acquisition of Touchstone Energy Inc. (formerly Touchstone Exploration Inc.) by Petrobank Energy and Resources Ltd.

Net Present Value Before Tax^1,2,3

		Net Present Values of Future Net Revenues Before Income Taxes Discounted at (% per year) ($000's)
		0%		5%		10%		15%		20%
Canada
Proved
	Proved producing	7,146		6,583		6,105		5,696		5,341
	Proved non-producing	522		478		438		402		371
	Proved undeveloped	18,699		13,262		9,431		6,673		4,650
Total proved		26,367		20,323		15,974		12,771		10,362
Probable		42,367		31,483		24,118		18,938		15,172
Total Proved Plus Probable		68,734		51,806		40,092		31,709		25,534
Trinidad
Proved
	Proved producing	171,820		118,683		95,906		82,077		72,351
	Proved non-producing	2,302		2,074		1,889		1,736		1,608
	Proved undeveloped	161,276		121,256		94,287		75,237		61,279
Total proved		335,398		242,013		192,082		159,050		135,238
Probable		319,578		217,390		162,358		127,711		103,935
Total Proved Plus Probable		654,976		459,403		354,440		286,761		239,173

1	Amounts may not add due to rounding.
2	Unit values are based on Company net reserves.
3	Estimated values of future net revenue disclosed in this press release do not represent fair market values.

Net Present Value After Tax^1,2,3

		Net Present Values of Future Net Revenues After Income Taxes Discounted at (% per year) ($000's)
		0%		5%		8%		15%		20%
Canada
Proved
	Proved producing	7,146		6,583		6,287		5,696		5,341
	Proved non-producing	522		478		453		402		371
	Proved undeveloped	18,699		13,262		10,811		6,673		4,650
Total proved		26,367		20,323		17,551		12,771		10,362
Probable		39,266		29,331		24,988		17,805		14,322
Total Proved Plus Probable		65,633		49,654		42,539		30,576		24,684
Trinidad
Proved
	Proved producing	66,783		53,673		49,106		41,785		38,074
	Proved non-producing	770		712		683		625		592
	Proved undeveloped	55,538		41,839		35,750		25,484		20,399
Total proved		123,091		96,224		85,539		67,894		59,065
Probable		104,875		74,166		62,533		44,711		36,505
Total Proved Plus Probable		227,966		170,390		148,072		112,605		95,570

1	Amounts may not add due to rounding.
2	Unit values are based on Company net reserves.
3	Estimated values of future net revenue disclosed in this press release do not represent fair market values.

Future Development Costs

	Canada				Trinidad
Year Incurred	For Proved Reserves		For Proved Plus Probable Reserves		For Proved Reserves		For Proved Plus Probable Reserves
($000's)
2015	2,250		3,600		2,620		3,395
2016	9,945		14,178		21,910		27,795
2017	8,739		18,415		12,313		22,447
2018	3,820		6,208		7,545		14,220
Thereafter	-		-		-		-
Total Undiscounted	24,754		42,401		44,388		67,857
Total Discounted at 10% per Year	20,389		34,680		36,597		55,204

Estimated Trinidad Finding, Development and Acquisition Costs¹

		Proved		Proved Plus Probable
Estimated capital expenditures ($000's)
	Estimated exploration capital expenditures2	1,298		1,298
	Estimated development capital expenditures2	22,336		22,336
	Estimated acquisition costs2,3	33,448		33,448
		57,082		57,082
Change in future development capital ($000's)4		44,388		67,857
Total capital		101,470		124,939
Reserve additions (Mbbls)
	Acquisitions	7,520		11,697
	Development	1,836		3,483
Total reserve additions		9,356		15,180
Estimated finding, development and acquisition costs ($/Bbl)		10.85		8.23

1	For the period of May 14, 2014 through December 31, 2014.
2	The Company's annual audit of its December 31, 2014 consolidated financial statements is not complete. Accordingly, unaudited capital expenditure amounts used in the calculation of finding and development costs is management's estimate and is subject to change.
3	Acquisition costs reflect the consideration paid for producing assets and does not reflect the fair market value allocated to acquire the assets under International Financial Reporting Standards.
4	Calculation includes changes in future development costs.

Touchstone Exploration Inc. is a Calgary-based company engaged in the business of acquiring interests in petroleum and natural gas rights, and the exploration, development, production and sale of petroleum and natural gas. Touchstone is currently active in onshore properties located in the Republic of Trinidad and Tobago and Western Canada. The Company's common shares are traded on the Toronto Stock Exchange under the symbol "TXP". As at December 31, 2014, the Company had 83,059,643 shares outstanding.

ADVISORIES

Oil and Natural Gas Reserves: The disclosure in this press release summarizes certain information contained in the Reserves Report but represents only a portion of the disclosure required under NI 51-101. Full disclosure with respect to the Company's reserves as at December 31, 2014 will be contained in the Company's annual information form for the year ended December 31, 2014 which will be filed on SEDAR (www.sedar.com) on or about March 31, 2014. All net present values in this press release are based on GLJ's forecast prices and estimates of future operating and capital costs as of December 31, 2014.

Estimated Trinidad Finding, Development and Acquisition ("FD&A") Costs: Trinidad based finding and development costs including acquisitions have been presented herein. While NI 51-101 requires that the effects of acquisitions and dispositions be excluded, FD&A costs have been presented because acquisitions and dispositions can have a significant impact on the Company's ongoing reserve replacement costs and excluding these amounts could result in an inaccurate portrayal of the Company's cost structure. The Company's estimated finding and development costs, excluding the effects of acquisitions and dispositions, for 2014 were $35.99/Boe on a proved basis and $24.68/Boe on a proved plus probable basis. Trinidad estimated finding and development costs were $37.05/Bbl and $26.27/Bbl on a proved and proved plus probable basis, respectively. The aggregate of the exploration and development costs incurred in the most recent financial year and the change during that year in estimated future development costs generally will not reflect total finding and development costs related to reserves additions for that year. The Company's annual audit of its December 31, 2014 consolidated financial statements is not complete. Accordingly, unaudited capital expenditure amounts used in the calculation of finding and development costs is management's estimate and is subject to change.

Barrels of oil Equivalent: Oil and natural gas reserves are converted to common units of measure on a basis of six thousand cubic feet of natural gas to one barrel of oil. Boes may be misleading, particularly if used in isolation. The forgoing conversion ratio is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current market price of oil as compared to natural gas is significantly different than the energy equivalency of six to one, utilizing a conversion on a six to one basis may be misleading as an indication of value.

Forward-Looking Statements: Certain information provided in this press release constitutes forward-looking statements. Specifically, this press release contains forward-looking statements regarding the Company's drilling prospect inventory, projected capital expenditures, sufficiency of resources to fund operations and plans related to and the timing of certain projects. Forward-looking statements are necessarily based on a number of assumptions and judgments, including but not limited to, assumptions relating to the outlook for commodity and capital markets, the success of future resource evaluation and development activities, the performance of producing wells and reservoirs, well development and operating performance, general economic conditions, weather, and the regulatory and legal environment. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. You can find a discussion of those risks and uncertainties in the Company's Canadian securities filings. Such factors include, but are not limited to: general economic, market and business conditions; weather conditions and access to properties; fluctuations in oil prices; the results of exploration and development drilling, recompletions and related activities; timing and rig availability; outcome of exploration contract negotiations; fluctuation in foreign currency exchange rates; the uncertainty of reserve estimates; changes in environmental and other regulations; uncertainties associated with the regulatory review and approval process in respect to projects; risks associated with the application of early stage technology; risks associated with oil and gas operations and other factors, many of which are beyond the control of Touchstone. There is no representation by Touchstone that actual results achieved during the forecast period will be the same in whole or in part as those forecasted. Except as may be required by applicable securities laws, Touchstone assumes no obligation to publicly update or revise any forward-looking statements made herein or otherwise, whether as a result of new information, future events or otherwise.

Abbreviations
Oil
Bbls	barrels
Mbbls	thousand barrels
Bbls/d	barrels per day
Boe	barrels of oil equivalent
Mboe	thousand barrels of oil equivalent
MMboe	million barrels of oil equivalent
Boe/d	barrels of oil equivalent per day
Natural Gas
MMcf	million cubic feet