TIDMTRIN
RNS Number : 9566I
Trinity Exploration & Production
23 June 2017
Dissemination of a Regulatory Announcement that contains inside
information according to REGULATION (EU) No 596/2014 (MAR).
Trinity Exploration & Production plc
("Trinity" or "the Group" or "the Company")
AGM Statement
Trinity, the independent E&P company focused on Trinidad and
Tobago will be holding its Annual General Meeting at 9.30am today
at the offices of Pinsent Masons LLP, Third Floor, Quay 2, 139
Fountainbridge, Edinburgh EH3 9QG.
At the meeting, Bruce Dingwall, Executive Chairman, will provide
a brief portfolio and strategy overview in line with the corporate
presentation that is available on the Company's website
(www.trinityexploration.com) giving the following statement.
Following the difficulties of 2015 and 2016 when the Board and
Management worked to preserve value for shareholders and
stakeholders, whilst delivering the refinancing and restructuring
needed to restore the Group's financial position, Trinity now has a
clear strategic focus going forward, which is to grow our reserves
and production to maximise the cash flow from our assets while
achieving a market value that is more reflective of our underlying
assets and business.
As discussed alongside our preliminary results in May,
production had declined significantly from average levels of 3,600
barrels of oil per day ("bopd") in 2014 to current levels of
approximately 2,500 bopd due to a lack of investment.
Notwithstanding, it is important to emphasise that the underlying
asset base remains intact and therefore growing production is a
direct function of investment into these assets. This is in
contrast to many oil and gas companies that are reliant on
successful exploration, appraisal and or development or M&A
activity.
The funding required to stabilise operations and recommence
value extraction from the asset base was received in January of
this year. Following receipt of funds, the primary focus during H1
has been to initiate essential maintenance and upgrades to our
infrastructure and to sustain base production levels whilst
undertaking parallel planning activities to grow production across
the portfolio from a range of; workovers, swabbing, re-activations,
re-completions ("RCPs") and new infill drilling. Specifically these
activities have included:
Onshore:
-- The identification of over 200 resistive (not perforated)
sands in the Company's portfolio to screen for RCP
opportunities;
-- Subsequent detailed petrophysical analyses screening to high
grade and risk the opportunity set;
-- The deployment of an additional rig dedicated to accelerating the RCP programme;
-- The completion of 4 RCPs to date (which have averaged
approximately 80 bopd, cumulative 4,700 bbls, since the start of
May with ongoing optimisation).
-- The high grading of a further 22 RCPs into the RCP hopper;
-- The work-over of 35 onshore wells, of which 4 were
re-activations, and continued generation of opportunities;
-- A substantive rolling work-over programme
in-progress/identified to be undertaken during H2 with 2 dedicated
rigs;
-- Identified wells for re-activation (wells that have been shut in for an extended period);
-- Swabbing commenced on two fields and is being rolled out across the onshore portfolio; and
-- The maturation of new infill onshore well locations that are
currently going through internal review and the external approvals
process.
We believe that these combined activities provide scope to grow
production from current levels of approximately 2,500 bopd to an
eventual target-rate of approximately 3,000 bopd within 12 months
of completing the initial onshore infill well drilling
programme.
Offshore:
-- Minor well interventions through wireline tubing scrapping
were executed on three wells on the marine platforms at Brighton on
the West coast;
-- The work-over of two wells on the Trintes field on the East coast;
-- Up to a further 10 work-overs in-progress/identified to be undertaken at Trintes during H2;
-- A dedicated work-over team has recently been deployed to
progress work-over activities at Trintes;
-- The first reactivation to include the installation of a
progressive cavity pump ("PCP") offshore has been completed;
-- The use of lower cost solutions to Electrical Submersible
Pumps (such as PCP, Mechanical Pump Hydraulic Unit and Crank Rod
Pump) for lower flow rate wells are being utilised on Trintes to
expand the pool of economic wells for work-overs and
re-activations;
-- Initiated an internal geological, geophysical and engineering
review of the Trintes infill drilling programme and the
Trintes-TGAL and Galeota Ridge development plan;
-- Well trajectory optimisation for the Trintes infill drilling programme has commenced; and
-- The Trintes drilling rig is to be demobilised to land for
inspection, service and upgrade in preparation for future offshore
drilling.
Trinity, alongside other Trinidadian operators by invitation,
has recently been engaged in lobbying and face to face discussions
on supplementary petroleum tax ("SPT") reforms with the
International Monetary Fund and the Ministry of Energy and Energy
Industries and the Ministry of Finance of the Government of
Trinidad and Tobago.
In summary, the last few months have been about strengthening
the foundation of the Company by identifying and working on
retaining asset integrity and maturing the pathways for
value-creating production growth.
The significant reductions to both OPEX and G&A costs
achieved so far, have enabled the Company to maintain and enhance
cash margins despite a lower oil price environment. To date, the
Group has also put hedging in place (through the purchasing of put
options) which covers over 35% of the Group's production should the
WTI oil price fall below US$40.0/bbl over the next 12 months. These
steps in conjunction with cash balances as at 31 May 2017 of
US$12.4 million (unaudited) mean we are well placed to grow as a
producing, cash flow positive business of scale and I look forward
to providing a further update early in the second half of the
financial year.
Investor Presentation Event
We will be attending and presenting at the Oil Capital
Conference organised by Proactive Investors on 27 June at the
Brewery (52 Chiswell St, EC1Y 4SD). A copy of the presentation,
which is being made at 10.00am, will be made available on our
website. There will be no new material information in the
presentation.
For more information and to register please visit the Proactive
Investors webpage http://www.oilcapital.com/conferences
Competent Person's Statement
The information contained in this announcement has been reviewed
and approved by Graham Stuart, the Company's Technical Advisor who
has 34 years of relevant global experience in the oil industry. Mr.
Stuart holds a BSC (Hons) in Geology. Reserves and resources in
this announcement are based on internal management estimates in
accordance with SPE PRMS guidelines (Petroleum Resources Management
System 2007 & Revisions).
Enquiries:
Trinity Exploration & Production Tel: +44 (0) 131 240
3860
Bruce Dingwall, Executive Chairman
Tracy Mackenzie, Head of Corporate Development
SPARK Advisory Partners Limited (Nominated Tel: +44 (0) 203 368
& Financial Adviser) 3550
Mark Brady
Miriam Greenwood
Sean Wyndham-Quin
Cantor Fitzgerald Europe (Broker) Tel: +44 (0) 207 894
7000
David Porter
Sebastien Maurin
Craig Francis
Walbrook PR Limited trinityexploration@walbrookpr.com
or Tel: +44 (0) 207
933 8780
Nick Rome
About Trinity
Trinity is an independent oil and gas exploration and production
company focused solely on Trinidad and Tobago. Trinity operates
producing and development assets both onshore and offshore, in the
shallow water West and East Coasts of Trinidad. 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 nine
licences and, across all of the Group's assets, management's
estimate of 2P reserves as at the end of 2016 was 21.3 mmbbls
(excluding the Guapo-1 license which was disposed of in April
2016). Group 2C contingent resources are estimated to be 21.1
mmbbls. The Group's overall 2P plus 2C volumes are therefore 42.3
mmbbls.
Trinity is listed on the AIM market of the London Stock Exchange
under the ticker TRIN.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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