TIDMTRIN
RNS Number : 9650J
Trinity Exploration & Production
03 May 2022
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")
Galeota, Drilling Update and Notice of Results
Trinity Exploration & Production plc (AIM: TRIN), the
independent E&P company focused on Trinidad and Tobago,
provides an update on the Galeota farm down process and the
imminent resumption of drilling.
Galeota Farm Down Process
The Company has engaged with a range of potential partners as
part of the Galeota farm down process. Whilst initial feedback has
been encouraging, a number of participants have informed the
Company that they are unable to fully assess the economics of the
opportunity at Galeota without clarity on the expected reforms to
Supplemental Petroleum Tax ("SPT"), which are currently being
considered by the Government of Trinidad and Tobago ("GORTT") and
which were initially expected to have been confirmed sooner than
now appears likely.
Pending SPT reform, which management still expects to happen,
the Company has decided to pause the Galeota farm down process.
This will enable the Company to seek the best value proposition for
Galeota when the GORTT's fiscal reforms have been confirmed.
The Company is hopeful that the GORTT will conclude its
deliberations and provide further details on reforms to SPT in the
near term and this, along with potential stabilisation of the macro
environment, will enable participants to fully assess the economics
of the opportunity when the farm down process recommences.
In the interim, the Company will continue to refine its plans
for Galeota. In particular, it will advance preparations for
exploiting the 11.66mmbls of 2P reserves remaining in the Trintes
field.
Drilling Programme
The Company is pleased to confirm its intention to resume
drilling activities early in H2 2022 (the "2022 Drilling
Programme"). The 2022 Drilling Programme is expected to involve the
drilling of a number of low angle conventional wells, and also
several high angle to horizontal wells, along with deeper wells to
test structures below our current producing horizons, which could
lead to a step change in reserves and production. With an
increasing focus on high angle, horizontal and deeper wells, the
2022 Drilling Programme is expected to yield significantly higher
volumes per capital invested, and materially increased cash
returns, when compared to the Company's 2018 and 2019 drilling
programme. The 2022 Drilling Programme is fully funded and is
expected to commence in July 2022, with first oil shortly
thereafter. Further, the Company has commenced the procurement of
long lead items such as; casing, tubular and production
equipment.
In addition, Trinity's subsurface teams have made good progress
in working up additional locations for infill drilling for all well
types in subsequent years. The Company's drilling hopper includes
numerous new wells, at various stages of readiness, having greatly
benefitted from the 3D seismic over the Company's operating areas,
and therefore continues to increase further in both number and
types of wells.
Publication of Results
The Company will announce its results for the year ended 31
December 2021 on 24 May 2022. At this time the Company intends to
provide a full update on Trinity's operations, including details on
rates of production, recoverable barrels, economic return metrics
and insight on the 2022 drilling campaign as the Company further
develops its portfolio of cash generative, high margin
opportunities.
Jeremy Bridglalsingh, Chief Executive Officer: " Whilst it is
frustrating to have to temporarily pause the Galeota farm down
process, we believe that this decision is necessary if we are to
unlock the significant value of this asset. With our focus firmly
on shareholders' best interests we strongly believe that this
approach will, ultimately, ensure we optimise value for
shareholders. We remain confident in the prospects for Galeota and,
once the GORTT's fiscal reforms have been confirmed, we will resume
discussions and seek to drive towards a successful conclusion of
the farm down process as soon as practicable.
"Management's near-term focus is now on maximising the
significant opportunity afforded by the imminent resumption of
drilling. The significant subsurface work which we have undertaken
since purchasing the 3D seismic data covering our onshore assets,
and the scrutiny of that work by our Technical Committee, now
allows us to confidently target a combination of conventional, high
angle, horizontal and deeper wells in the drilling campaign and we
are excited by the potential for meaningful production growth and
returns. By including higher risk/reward opportunities in our
drilling campaign the Company and its shareholders can expect to
benefit from a much higher set of economic returns. Furthermore, we
believe that by operating a range of well-types, a number of which
are not typical to the region, the Company will be hold a
considerable advantage over other participants in forthcoming
licensing rounds.
"The strength of Trinity's balance sheet and our capital
efficient business model enables us to fully fund the 2022 Drilling
Programme from existing cash resources. We believe that the
upcoming drilling activity has the potential to be transformational
for the Company and look forward to updating shareholders as we
progress operations."
Enquiries
For further information please visit www.trinityexploration.com
or contact:
Trinity Exploration & Production plc +44 (0)131 240 3860
Nick Clayton, Non-Executive Chairman
Jeremy Bridglalsingh, Chief Executive
Officer
SPARK Advisory Partners Limited (Nominated
Adviser and Financial Adviser) +44 (0)20 3368 3550
Mark Brady
James Keeshan
Cenkos Securities PLC (Broker)
Leif Powis +44 (0)20 7397 8900
Neil McDonald +44 (0)131 220 6939
Walbrook PR Limited +44 (0)20 7933 8780
Nick Rome/Tom Cooper trinityexploration@walbrookpr.com
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 nine licences and, across all of the
Group's assets, management's estimate of the Group's 2P reserves as
at the end of 2020 was 19.55 mmbbls. Group 2C contingent resources
are estimated to be 31.06 mmbbls. The Group's overall 2P plus 2C
volumes are therefore 50.61 mmbbls.
Trinity is quoted on the AIM market of the London Stock Exchange
under the ticker TRIN.
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