Trinity Exploration & Production Galeota License Update (5087W)
30 Diciembre 2013 - 1:00AM
UK Regulatory
TIDMTRIN
RNS Number : 5087W
Trinity Exploration & Production
30 December 2013
Trinity Exploration & Production plc
(the "Company" or "Trinity"; AIM:TRIN)
Galeota License Update
30 December 2013
Trinity, the leading independent E&P company focused on
Trinidad and Tobago, is pleased to provide an update on its Galeota
license (the "Galeota License" or the "Block").
Highlights
-- Petroleum Company of Trinidad and Tobago's ("Petrotrin") 35%
interest in the Trintes field converted to an over-riding royalty
("ORR") increasing Trinity's working interest in the field to
100%
-- Trinity Rig 2 and other upgrades completed and drilling to
shortly recommence at the Trintes field
-- New crude oil sales agreement ("COSA") signed for Trintes production
The Galeota License is one of Trinity's key assets. The recent
announcement of the TGAL-1 exploration discovery provides
additional confidence in the underlying resource potential of the
Block. In order to improve drilling and operational efficiency and
continue to build financial flexibility on the Block, Trinity is
pleased to highlight the following:
1. Effective October 1(st) 2013, Trinity's joint venture partner
Petrotrin has agreed to convert its 35% working interest in the
Trintes field to an ORR. No other financial consideration is
payable beyond the ORR. The net effect of the conversion is to
increase Trinity's working interest in the field to 100% and adds
an additional 13 mmbl in 2P reserves and c. 470 bopd of production.
This ORR agreement only covers the Trintes field (which excludes
the recent TGAL-1 discovery) and Petrotrin retains a 35% working
interest in the remainder of the Galeota License. The terms of the
ORR agreement are summarised at the end of this announcement.
2. Trinity's Rig 2 upgrades have been completed: this will
improve drilling efficiency and therefore reduce costs.
Furthermore, Trinity has upgraded the personnel transfer system
which will improve the safety and operating efficiency in
transferring people to and from the offshore platforms. Start-up of
infill drilling operations has been delayed by severe weather
offshore Trinidad's East Coast but will shortly recommence with the
spud of the B9 well, this well is expected to take approximately
40-45 days to drill and complete.
3. Trinity recently signed a new COSA with Petrotrin for the
sale of its share of production from the Trintes field. This
agreement harmonises pricing of the Trintes crude with Trinity's
other sales agreements under which oil pricing is linked to WTI.
The new arrangement is effective August 1, 2013 and has a two year
term with a further option for renewal. All other key terms remain
unchanged.
Monty Pemberton, Chief Executive Officer of Trinity,
commented:
"Trinity strongly believes in the potential of the Galeota
License which has all the necessary components to build a
significant production hub; that is infrastructure, existing
production and a significant development, appraisal and exploration
inventory. These new arrangements increase Trinity's financial and
operating flexibility thus enabling further investment in this
Block to grow reserves and production for our shareholders.
Trinity's joint venture partner, Petrotrin, continue to work
positively with the Company to achieve a common objective of
increasing oil production for the mutual benefit of all
stakeholders and we wish to thank them for their continued support
in finalising these agreements.
2014 is set to be an exciting year at Galeota. We are pleased to
be re-commencing drilling operations at the Trintes field as
delivering production growth is a core focus of Trinity. As
previously announced we have also commenced engineering studies to
rapidly move our TGAL-1 discovery to a development project and will
provide an update to shareholders when this work is complete."
Enquiries
Trinity Exploration & Production Tel: +44 (0)20 7404
Monty Pemberton, Chief Executive Officer 5959
Robert Gair, Corporate Development Manager
RBC Capital Markets (NOMAD & Joint Broker) Tel: +44 (0) 20 7653
Tim Chapman 4000
Matthew Coakes
Daniel Conti
Jefferies (Joint Broker) Tel: +44 (0) 20 7029
Chris Zeal 8000
Graham Hertrich
Brunswick Group LLP (PR Adviser) Tel: +44 (0) 20 7404
Patrick Handley 5959
Kate Boothman-Meier
About Trinity
Trinity is the largest independent E&P company focused on
Trinidad and Tobago. Trinity operates assets onshore and offshore
on both the West and East coasts. Trinity's portfolio includes
current production, significant near-term production growth
opportunities from low risk developments and multiple exploration
prospects with the potential to deliver meaningful
reserves/resources growth. The Company operates all of its licences
and has 2P reserves of 49 mmbbl. Trinity is listed on the AIM
market of the London Stock Exchange under the ticker TRIN.LN.
Notes to analysts:
The agreed ORR rates are detailed in the table below:
Oil price Incremental production levels
--------------- -------------------------------------------------------
0 - 2,000 bopd 2,001 - 10,000 > 10,000 bopd
bopd
--------------- ----------------- ----------------- -----------------
0 - 30.00 To be negotiated To be negotiated To be negotiated
--------------- ----------------- ----------------- -----------------
30.01 - 50.00 12% 9% 11%
--------------- ----------------- ----------------- -----------------
50.01 - 75.00 13% 10% 12%
--------------- ----------------- ----------------- -----------------
75.01 - 90.00 14% 12% 13%
--------------- ----------------- ----------------- -----------------
> 90.00 18% 13% 13%
--------------- ----------------- ----------------- -----------------
Disclaimer
In granting its consent to the public disclosure of this press
release Petrotrin makes no representation or warranty as to the
adequacy or accuracy of its contents and disclaims any liability
that may arise because of reliance on it.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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