TIDMTRIN
RNS Number : 5660G
Trinity Exploration & Production
20 July 2023
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.
20 July 2023
Trinity Exploration & Production plc
("Trinity" or "the Group" or "the Company")
Q2 2023 Operational Update
Trinity Exploration & Production plc (AIM: TRIN), the
independent E&P company focused on Trinidad and Tobago ,
provides an update on operations for the three-month period ended
30 June 2023 ("Q2 2023" or "the Period"). The information contained
herein has not been audited and may be subject to further review
and amendment.
Jeremy Bridglalsingh, Chief Executive Officer of Trinity,
commented:
"Trinity is delivering on important catalysts within our
refreshed strategy. We are greatly encouraged by progress at our
Jacobin well, testing the first of our nine deep Hummingbird
prospects and where we reported multiple oil-bearing reservoirs in
the Lower Cruse interval; the well sidetrack is drilling ahead and
making good progress.
"In June, we announced that we had been successful in our bid
for the Buenos Ayres block where we intend to leverage our
competitive advantage in the Palo Seco area.
"On our Galeota East Coast asset, we appointed Petrofac to
undertake a Concept Screening study for the development of further
reserves and resources using a low cost, more flexible approach
than originally envisaged.
"I look forward to continuing to update shareholders on our
further progress at a very busy and exciting time for Trinity.
"
Q2 2023 Operational Highlights
-- The Company maintained solid production performance over the
quarter with Q2 2023 sales volumes averaging 2,824 bopd (Q1 2023:
2,899 bopd; Q2 2022: 3,019 bopd).
-- Production sales guidance for the full year 2023 remains
unchanged at 2,800 bopd - 3,100 bopd.
-- During Q2 2023:
- 1 recompletion ("RCP") (Q1 2023: 2; Q2 202 2: 9) was completed.
- 16 workovers (Q1 2023: 39; Q2 2022: 31) were completed.
- swabbing operations continued across onshore and West Coast assets.
-- The ABM-151 well in the Brighton Marine block, offshore the
West Coast of Trinidad, was returned to production on 21 March
2023. During Q2 2023, the well flowed at an average rate of 125
bopd, above the target range.
Q2 2023 Financial Highlights
The Group reports its consolidated financial information half
yearly, in its Annual Report & Accounts and Interim Results, in
accordance with UK adopted International Accounting Standards and
the London Stock Exchange's AIM Rules for Companies. Quarterly, the
Company provides unaudited information for guidance.
-- Average realisation of US$ 63.7/bbl for Q2 2023 (Q1 2023: US$
67.9 /bbl, Q2 2022: US$ 96.8/bbl).
-- EBITDA , pre-hedging(1) , in Q2 2023 of US$ 4.5 million (unaudited) (Q1 2023: US$ 5.3 million (unaudited); Q2 2022 US$ 11.2 million).
-- Operating break-even(2) , pre-hedging(1) , Q2 2023 of US$
34.8/bbl (Q1 2023 of US$ 35.4 /bbl; Q2 2022 US$ 31.3/ bbl).
(1) The Company has no hedging in place in 2023.
(2) Operating break-even is the realised price/bbl where the
adjusted EBITDA/bbl for the Group is equal to zero .
-- Cash balance of US$ 11 .3 million (unaudited) at 30 June 2023
versus US$ 11.4 million (unaudited) at 31 March 2023 and US$ 15.0
million at 30 June 2022.
-- The Group had drawn borrowings (overdraft) of US$ 2.0 million
at 30 June 2023 (US$ 2.3 million at 31 March 2023 and US$ 2.7
million at 30 June 2022). These borrowings match the Company's
outstanding VAT receivable balance.
-- The Company's second buyback programme, announced on 24
October 2022, concluded on 26 April 2023 with 760,000 Ordinary
Shares repurchased.
On 28 April 2023, the Company announced a further share buyback
programme which concluded on 27 June 2023, the date of the Annual
General Meeting, and repurchased a further 117,000 Ordinary Shares
bringing the total number of shares held in treasury to 1,549,000
(4 .0 % of the Company's shares in issue).
Outlook
Jacobin Update
As announced on 13 July 2023, the Jacobin sidetrack is currently
drilling ahead following unexpected well bore conditions in the
original well.
The original wellbore penetrated over 2,000 ft of Lower Cruse
section, with preliminary evaluation using a combination of
Measurement While Drilling ("MWD") data (inclusive of MWD gamma
ray) and together with analysis of well bore cuttings, pointing to
at least three well developed, oil-bearing sand intervals in the
Lower Cruse.
The next update on Jacobin is expected to be announced once the
sidetrack has been completed and the full suite of data acquisition
has been completed, which will provide a definitive view on all
sands encountered.
2022 Onshore and Nearshore Competitive Bid Round
On 13 June 2023, Trinity announced its successful bid for the
onshore Buenos Ayres block further leveraging our competitive
advantage in the Palo Seco area.
Our investment in purchasing the North West District 3D seismic
dataset and resultant exhaustive subsurface work has provided
Trinity with an unparalleled understanding of the trapping
mechanisms in the Palo Seco area. Our review of the 3D seismic over
Buenos Ayres block, utilising our in-house knowledge, has
highlighted multiple prospects at a variety of levels in this
virgin block.
Buenos Ayres contains multiple stacked target reservoirs of the
Lower Forest, Upper Cruse and Lower Cruse which are the most
productive reservoirs in the Southern Basin in Trinidad.
We are planning to fast track the first exploration well on
Buenos Ayres in 2024, subject to acquiring environmental
approvals.
Galeota Concept Screening Study
On 27 June 2023, Trinity announced it had appointed Petrofac to
undertake a Concept Screening study for the development of further
reserves and resources in its Galeota Block. The Galeota Block
contains estimated 2P+2C reserves and resources of 46.1 million
barrels of oil equivalent and is the Company's largest asset.
The study will take a fresh look at development concepts for the
Galeota Block, using the latest subsurface information and marrying
that with Petrofac's global low-cost marginal field track record to
develop a concept that can be taken forward into Conceptual
Engineering, Front End Engineering and Project Sanction. Key
elements will comprise flexibility to deal with reservoir
uncertainty and using equipment that could be potentially relocated
around the large Galeota Block. Leased Mobile Offshore Production
Units ("MOPU") concepts such as converted jack-ups or Floating
Production, Storage and Offloading ("FPSO") vessels will be
considered as well as any other suitable scheme. The cost of the
study is included within this year's capex guidance range.
The study has commenced and is expected to conclude in
September, at which point a further update will be provided.
Enquiries:
Trinity Exploration & Production plc Via Vigo Consulting
Jeremy Bridglalsingh, Chief Executive Officer
Julian Kennedy, Chief Financial Officer
Nick Clayton, Non- Executive Chairman
SPARK Advisory Partners Limited
(Nominated Adviser and Financial Adviser)
Mark Brady
James Keeshan +44 (0)20 3368 3550
Cenkos Securities PLC (Broker)
Leif Powis +44 (0)20 7397 8900
Neil McDonald +44 (0)131 220 6939
Vigo Consulting Limited trinity@vigoconsulting.com
Finlay Thomson +44 (0)20 739 0
Patrick d'Ancona 0230
About Trinity ( www.trinityexploration.com )
Trinity is an independent oil 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 ten licences and, across all of the
Group's assets, management's estimate of the Group's 2P reserves as
at the end of 2022 was 17.96 mmbbls. Group 2C contingent resources
are estimated to be 48.88 mmbbls. The Group's overall 2P plus 2C
volumes are therefore 66.84 mmbbls.
Trinity is quoted on AIM, a market operated and regulated by the
London Stock Exchange Plc, under the ticker TRIN.
Competent Person's Statement
All reserves and resources related information contained in this
announcement has been reviewed and approved by Dr. Ryan Ramsook,
Trinity's Executive Manager, Exploration. Dr. Ryan Ramsook also
lectures and is involved in collaborative Geoscience research with
the University of the West Indies and is a Fellow of the Geological
Society ("FGS") of London. He is a Geologist by background with 19+
years' experience.
Disclaimer
This document contains certain forward-looking statements that
are subject to the usual risk factors and uncertainties associated
with the oil exploration and production business. Whilst the Group
believes the expectation reflected herein to be reasonable in light
of the information available to it at this time, the actual outcome
may be materially different owing to macroeconomic factors either
beyond the Group's control or otherwise within the Group's
control.
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