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.
26 April 2024
Trinity Exploration & Production
plc
("Trinity" or "the Group" or "the
Company")
Q1 2024 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 31 March 2024 ("Q1 2024" 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's core business remains robust and
cash-generative, with no long-term debt. We are focused on
three immediate priorities:
1) Maximising cash flow from
our existing producing assets in a safe and efficient
manner.
2) Rebuilding cash following
the drilling of the Jacobin well in 2023 with a strong focus on
cost management; and
3) Maturing detailed
engineering for our two principal projects, particularly Phase 1
(Trintes 2P) of the Galeota Development and preparing plans for the
exploration of the Buenos Ayres block, to a point that they can
attract new investment capital or being monetised through sale or
farm-down.
I look forward to updating shareholders
throughout the year as we execute our activities."
Jacobin-1 Operations
By mid-January production rates and flowing
pressures from Jacobin had fallen to approximately 10 bopd
with the well struggling to flow naturally, so the decision was
taken to convert the well to pump. The pump was run in late
February and fluids were brought to surface on 1 March 2024.
However, significant quantities of sand were also being
produced and, by late March, the pump failed with a sand blockage.
The forward plan for Jacobin, which has been
submitted to Heritage Petroleum Company Limited and the Ministry of
Energy and Energy Industries for approval, is to recomplete the
Jacobin well up-hole in the Lower Forest horizon with production
expected in the second half of May 2024.
Galeota / Trintes Development
Work on Phase 1 (Trintes 2P infill drilling)
continued in Q1 and was focused on using the updated static and
dynamic reservoir models to complete the primary target well bottom
hole locations and well paths for infill wells, assuming drilling
from the Trintes Delta platform. The updated static model for
Trintes will be expanded to include the entire Galeota anticline
structure during the remainder of 2024, including the TGAL area
that the Mobile Production Unit concept would initially focus
on.
Buenos Ayres Block
On Buenos Ayres, work on the
Environmental Impact Assessment continues to progress with the
Certificate of Environmental Clearance Application expected to be
submitted in late Q2 / early Q3 2024, along with ongoing subsurface
evaluation.
Idle Well Study
Trinity has embarked on an idle well
study, with the initial phase including technical reviews of
approximately 250 wells, with field investigations having commenced
on the first 30 of these wells which has added additional wells to
the swabbing programme.
Reserves
Further to the Company's announcement on 15
April 2024 the following tables provide a reconciliation, by
operating area, of the revisions between Year-End 2022 and Year-End
2023. All data is Net Working
Interest ("Net WI").
Comparison of YE
2022 vs YE 2023 2P Reserves
Asset
|
2P Reserves
YE 2022
|
2023 Production
|
2P Revisions
|
2P Reserves
YE 2023
|
|
mmstb
|
mmstb
|
mmstb
|
mmstb
|
Onshore
|
6.53
|
-0.55
|
-1.72
|
4.26
|
East Coast
|
9.26
|
-0.34
|
-1.14
|
7.78
|
West Coast
|
2.17
|
-0.13
|
-1.18
|
0.86
|
Total
|
17.96
|
-1.02
|
-4.03
|
12.91
|
Comparison of YE
2022 vs YE 2023 2C Resources
Asset
|
2C Resource
YE 2022
|
2023 Production
|
2C Revisions
|
2C Resource
YE 2023
|
|
mmstb
|
mmstb
|
mmstb
|
mmstb
|
Onshore
|
8.62
|
N/A
|
-4.88
|
3.74
|
East Coast
|
36.81
|
N/A
|
-5.50
|
31.31
|
West Coast
|
3.45
|
N/A
|
0.18
|
3.63
|
Total
|
48.88
|
N/A
|
-10.20
|
38.68
|
Q1 2024 Operational Highlights
· Q1
2024 sales volumes averaged 2,669 bopd (Q1 2023:
2,899 bopd, Q4 2023: 2,736 bopd).
· The
Company maintains its Full-Year 2024 sales volume guidance of
2,600-2,700 bopd.
Average Annual and Quarterly Sales by
Region
Asset
|
12m 2023
bopd
|
Q1 2023
bopd
|
Q2 2023
bopd
|
Q3 2023
bopd
|
Q4 2023
bopd
|
Q1 2024
bopd
|
Onshore
|
1,495
|
1,548
|
1,477
|
1,493
|
1,462
|
1,383
|
East Coast
|
943
|
1,038
|
985
|
843
|
908
|
912
|
West Coast
|
353
|
314
|
362
|
370
|
365
|
373
|
Total
|
2,790
|
2,899
|
2,824
|
2,705
|
2,736
|
2,669
|
·
During Q1 2024:
- 33
workovers were completed (Q1 2023: 39;
Q4 2023: 33).
-
There was one recompletion in the Period (Q1 2023: two;
Q4 2023: three).
-
Swabbing operations continued across Onshore and West Coast
assets.
Q1 2024 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 Group provides unaudited
information for guidance.
·
Average realised oil price of USD 69.9/bbl for
Q1 2024 (Q1 2023: USD 67.9/bbl; Q4 2023:
USD 71.6/bbl).
·
EBITDA, pre-hedging1 in Q1 2024 of
USD 4.0 million (unaudited) (Q1 2023 USD 5.3
million).
·
Operating break-even2, pre-hedging1,
Q1 2024 of USD 44.3/bbl (Q1 2023: USD 35.4/bbl;
Q4 2023: USD 39.8/bbl).
1
The Group had no hedging in place in 2023 or
2024.
2
Operating break-even is the realised price/bbl
where the adjusted EBITDA/bbl for the Group is equal to
zero.
· Cash
balance of USD 8.6 million (unaudited) at 31
March 2024 versus USD 9.8 million (unaudited) at
31 December 2023 and USD 11.4 million
(unaudited) at 31 March 2023.
· The
Group had drawn borrowings (overdraft) of USD 4.0 million
at 31 March 2024 (USD 4.0 million at 31
December 2023 and USD 2.3 million at 31 March
2023).
· VAT
refunds collected in Q1 2024 totalled USD 0.8 million.
VAT refunds outstanding as at 31 March 2024 are
USD 5.1 million reflecting expenditures, principally on
the Jacobin well in 2023.
Investor Presentation
The Company will host a presentation through the
digital platform Investor Meet Company. The confirmed time
and date will be announced separately.
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.
Investors who already follow Trinity on the Investor Meet Company
platform will automatically be invited.
Enquiries:
Trinity Exploration & Production plc
Jeremy Bridglalsingh, Chief Executive
Officer
Julian Kennedy, Chief Financial
Officer
Nick Clayton, Non-Executive
Chairman
|
Via Vigo Consulting
|
|
|
SPARK Advisory Partners Limited
(Nominated Adviser and Financial
Adviser)
Mark Brady
James Keeshan
|
+44 (0)20 3368 3550
|
|
|
Cavendish Capital Markets Limited (Broker)
Leif Powis
Derrick Lee
Neil McDonald
|
+44 (0)20 7397 8900
+44 (0)131 220 6939
|
|
|
Vigo
Consulting Limited
Finlay Thomson
Patrick d'Ancona
|
trinity@vigoconsulting.com
+44 (0)20 7390 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 licences and, across all of the Group's assets,
management's estimate of the Group's 2P reserves as at the end of
2023 was 12.91 mmstb. Group 2C contingent resources are
estimated to be 38.68 mmstb. The Group's overall 2P plus
2C volumes are therefore 51.58 mmstb.
Trinity is quoted on AIM, a market operated and
regulated by the London Stock Exchange Plc, under the ticker
TRIN.
Qualified Person's
Statement
The technical information contained
in the announcement has been reviewed and approved by Mark
Kingsley, Trinity's Chief Operating Officer. Mark Kingsley
(BSc (Hons) Chemical Engineering, Birmingham University) has over
35 years of experience in international oil and gas exploration,
development and production and is a Chartered
Engineer.
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.