TIDMTRIN
RNS Number : 3850M
Trinity Exploration & Production
21 January 2021
RNS ANNOUNCEMENT: This announcement contains inside information
as stipulated under the UK version of the Market Abuse Regulation
No 596/2014 which is part of English Law by virtue of the European
(Withdrawal) Act 2018, as amended. On publication of this
announcement via a Regulatory Information Service, this information
is considered to be in the public domain.
Trinity Exploration & Production plc
("Trinity" or "the Group" or "the Company")
Q4 2020 Operational Update
Production and Cash Generation Remain Strong
Enhanced Portfolio of Opportunities to Scale the Business
Trinity Exploration & Production plc (AIM: TRIN), the
independent E&P company focused on Trinidad and Tobago,
provides an update on its operations for the three-month period
ended 31 December 2020 ("Q4 2020" or "the period").
Q4 2020 Summary
Production levels remained strong during Q4 2020 with volumes
averaging 3,206 bopd, yielding a full year 2020 average of 3,226
bopd (2019: 3,007 bopd) in line with market guidance. This
represents a 7% increase over the prior year despite the challenges
presented by COVID-19 and no new drilling activity taking place
during the year. This is the third consecutive year of delivering
production growth and meeting our stipulated production targets.
Furthermore, the Group's unaudited FY 2020 operating break-even was
US$20.5/bbl, meeting the challenging target set in response to the
COVID-19 pandemic and being the fifth consecutive year of
maintaining a sub-US$30/bbl operating break-even.
This robust operational performance ensured cash generation
remained strong during the period, with the Group's unaudited cash
balances at the year-end 2020 being US$20.2 million (US$13.8
million (audited) as at 31 December 2019).
Investor Presentation
Trinity management will be providing a presentation on the
prospects and plans for 2021 and hosting an Investor Q&A
session at 13.00 (BST) on 8 February 2021 through the digital
platform Investor Meet Company, details of which can be found at
the end of this the release.
Bruce Dingwall, CBE, Executive Chairman of Trinity,
commented:
"2020 has been a year of significant progress for Trinity in not
only continuing to grow production and generate cash during
unprecedented times but also in maturing a strategic framework to
meaningfully scale the business. Given the number of growth
initiatives now underway, 2021 will be a year of investment as we
seek to advance current developments, identify new opportunities
via the strategic partnerships we have recently entered into and
pursue further low cost appraisal and exploration targets.
"During Q4 the Company continued to build on the momentum that
we have achieved, with growth in production despite not drilling
any new wells during 2020. We have created a sustainable model that
proved itself despite the wider COVID-19 related issues. We
continue to work on ways of growing value from existing operations
at the same time as maturing new projects to enhance our portfolio
and create a differentiated company of scale for our shareholders.
We are excited by the multitude of attractive growth opportunities
available in Trinidad for companies of our scale, which have been
further enhanced by the recent welcome changes to the SPT
threshold.
"I must again thank all our staff for their unstinting
dedication and to the supply chain and their employees for
supporting our operations throughout this period. We are well
positioned and see exciting opportunities in front of us."
Strategic Highlights: Routes to a step-change in Scale
Production
-- Third consecutive year of production growth - targets met
-- Proven operating model with a robust approach to base management
-- Low operating break-even maintained, with targeted full year
2020 operating break-even of US$20.5/bbl (unaudited) being
achieved
-- Automation of offshore east coast assets continues to
generate low volatility/stable production
-- Wide scale roll-out of onshore automation continues
-- Extensive use of analytics, transition technologies and
automation provide a differentiated and scalable foundation for
continued growth
Assets
-- Solid reserves base and production profile are matched by an extensive development pipeline
-- Acquisition of onshore 3D & 2D seismic data potentially transformative for onshore licences
-- Onshore seismic is of good quality over much of the area and
initial first pass screening shows interesting prospective features
not previously mapped
-- Development, appraisal and exploration pipeline to be augmented following 3D onshore seismic interpretation (now underway)
-- Echo development (offshore Galeota) well advanced
-- New, longer term onshore licences expected to be finalised during Q1 2021
-- Supplemental Petroleum Tax ("SPT") reforms have commenced
Partnerships
-- Partnership formed with Cairn Energy to bid on material
offshore Gulf of Paria production and development asset (Jubilee)
and a potentially high impact onshore exploration play (North West
District)
-- Partnership established with The National Gas Company of
Trinidad and Tobago Ltd. ("NGC") to explore and develop new energy
projects
-- Asset acquisitions and partnerships offer the potential to
increase scale, share risk and drive returns to shareholders
-- Strong financial position means that Trinity is well placed
to take advantage of further commercial opportunities as and when
they arise
Q4 2020 Operational Highlights
-- Robust COVID-19 measures continue with no significant impact to operations and production
-- Quarter on quarter Group average production volumes were
increased to 3,206 bopd for Q4 2020 (Q3 2020: 3,135 bopd)
-- 7% year on year increase in Group average production volumes
to 3,226 bopd for the full year 2020 (2019: 3,007 bopd)
-- The increase in year-on-year production, despite no new
drilling in 2020, is the result of the Company's rigorous approach
to managing every aspect of our production operations
-- During Q4, 4 recompletions ("RCPs") (Q3 2020: 8) and 31
workovers were completed (Q3 2020: 27) with swabbing operations
continuing across onshore and West Coast assets
-- A total of 18 RCPs and 115 workovers were completed during 2020
-- The application of Supervisory, Control and Data Acquisition
("SCADA") technology and wider scale automation ramped up during Q4
and the Group is on track to have 31 Tier 1 onshore wells fully
automated by H2 2021. With further roll out over a longer period
the full production benefits and operating cost savings will become
increasingly apparent
Q4 2020 Financial Highlights
-- Average realisation of US$37.9/bbl for Q4 (Q3 2020:
US$39.3/bbl) yielding a full year 2020 average of US$37.4/bbl (FY
2019: US$58.1/bbl). As a result, no SPT will be payable for
2020
-- Operating break-even estimated at US$20.5/bbl for FY 2020 (2019: US$26.4/bbl)
-- Net hedge income of US$1.4 million during 2020 (unaudited)
o 3 new instruments purchased during Q4 offering downside
protection for between 30-50% of expected monthly production levels
for 2021
-- Cash balance of US$20.2 million (unaudited) as at 31 December
2020 versus US$13.8 million (audited) as at 31 December 2019 and
US$22.2 million (unaudited) as at 30 September 2020.
o Cash balances at year end in-line with guidance given in Q3
2020 update and reflects investment in growth projects during
Q4
-- Net cash (cash minus US$2.7 million drawn working capital
facility) of US$17.5 million as at 31 December 2020 (unaudited),
versus US$13.8 million as at 31 December 2019 (audited)
-- The 27% increase in net cash balances during the year was
driven by strong operating cash flow generation and achieved
despite a 36% reduction in average oil price realisations versus
2019
-- During Q4 the working capital facility has been further
increased to US$5.0 million (US$2.3 million undrawn) to enhance
liquidity position further
Q4 2020 Key Developments
-- Memorandum of understating ("MOU") signed with the NGC, to
explore and develop new projects to enable energy transition in
Trinidad and, potentially, in the wider Caribbean and Latin
America, including;
o A Micro Liquefied Natural Gas ("micro LNG") business
o Renewable energy opportunities, inclusive of a wind power
generation project
o Pursuit of stranded gas assets and associated opportunities in
existing Trinity assets; and
o Pursuit of other mutually beneficial business
opportunities
-- The Trinidad & Tobago Government implemented the proposed
reforms of SPT for small onshore producers
o These reforms are now effective with the threshold for the
imposition of SPT lifted from US$50/bbl to US$75/bbl for the
financial years 2021 and 2022
o Confirmation of these reforms represents a considerable boost
to potential cash generation from Trinity's onshore licences should
realisations average above US$50.01/bbl for any calendar quarter
during 2021 and 2022
-- 3D and 2D seismic and well log data acquired from Heritage Petroleum Company Limited
o Provides the basis for developing a new structural and
stratigraphic framework in order to better understand how to
maximise the value potential of Trinity's onshore licences
o Improves Trinity's ability to identify subsurface targets,
particularly for high angle and horizontal wells
o Facilitates the identification and maturation of new appraisal
and exploration targets onshore
Investor Presentation
The Company will be hosting a presentation through the digital
platform Investor Meet Company at 13.00 (BST) on the 08 February.
Investors can sign up to Investor Meet Company for free and add to
meet Trinity Exploration via the following link
https://www.investormeetcompany.com/trinity-exploration-production-plc/register-investor
.
Enquiries
For further information please visit www.trinityexploration.com
or contact:
Trinity Exploration & Production plc +44 (0)131 240 3860
Bruce Dingwall CBE, Executive Chairman
Jeremy Bridglalsingh, Managing Director
Tracy Mackenzie, Corporate Development
Manager
SPARK Advisory Partners Limited (Nominated
Adviser and Financial Adviser) +44 (0)20 3368 3550
Mark Brady
Cenkos Securities PLC (Broker)
Joe Nally (Corporate Broking) +44 (0)20 7397 8900
Neil McDonald +44 (0)131 220 6939
Walbrook PR Limited +44 (0)20 7933 8780
Nick Rome trinityexploration@walbrookpr.com
About Trinity ( www.trinityexploration.com )
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 2019 was 20.9 mmbbls.
Group 2C contingent resources are estimated to be 20.1 mmbbls. The
Group's overall 2P plus 2C volumes are therefore 41.1 mmbbls.
Trinity is quoted on the AIM market of the London Stock Exchange
under the ticker TRIN.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
UPDEANFEADNFEFA
(END) Dow Jones Newswires
January 21, 2021 02:00 ET (07:00 GMT)
Trinity Exploration & Pr... (LSE:TRIN)
Gráfica de Acción Histórica
De Jun 2024 a Jul 2024
Trinity Exploration & Pr... (LSE:TRIN)
Gráfica de Acción Histórica
De Jul 2023 a Jul 2024