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TICKERS: TXP; PBEGF

Oil & Gas Company Increases Credit Term Facility to Fund Second Well
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The terms and the reason are presented in a Mackie Research Capital Corp. report.

In a Nov. 1 research note, Mackie Research Capital Corp. analyst Bill Newman reported that Touchstone Exploration Inc. (TXP:TSX; PBEGF:OTC.MKTS) increased its term credit facility to $20 million from $5 million to fund drilling of a second exploration well in the Republic of Trinidad and Tobago.

Under the terms, Touchstone will keep paying, on a quarterly basis, 8% per year interest. Also, it will begin paying the principal on Jan. 1, 2021, of $1.1 million per quarter with the full amount due by the facility's maturity date, Nov. 23, 2023.

Another change, Newman relayed, was an increase of the royalty payable on future production to 1.33% per from 1%, payable quarterly through Oct. 31, 2023.

Newman noted that Cascadura-1, the second of Touchstone's 'four exploration wells, is currently being drilled. Initial results are expected in mid-November as are production test results from Coho-1, the first well of the quartet. "If the Coho-1 well is successful, it has a relatively short tie-in distance of about 3.5 kilometers," added Newman.

Mackie has a Speculative Buy recommendation and a CA$0.50 target price on Touchstone. This reflects a 133% projected return as the company's current share price is around CA$0.22.

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Disclosures from Mackie Research, Touchstone Exploration Inc., Update, November 1, 2019

RELEVANT DISCLOSURES APPLICABLE TO COMPANIES UNDER COVERAGE
Relevant disclosures required under Rule 3400 applicable to companies under coverage discussed in this research report are available on our web site at www.mackieresearch.com. 1. None Applicable for this Issuer

ANALYST CERTIFICATION
Each analyst of Mackie Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst's personal views and (ii) no part of the research analyst's compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.

Mackie Research Capital Corporation, its directors, officers and other employees may, from time to time, have positions in the securities mentioned herein.





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