TIDMTRIN
RNS Number : 7266S
Trinity Exploration & Production
18 July 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)
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Trinity Exploration & Production plc
("Trinity" or "the Group" or "the Company")
Q2 2022 Operational Update
Increased operating cash flows and drilling commenced
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 2022 ("Q2 2022" or "the Period").
The Company maintained robust production and benefitted from a
stronger realised oil price in Q2, when compared to Q1, leading to
a 25% increase in operating cash flow pre-tax and pre-hedging. In
addition to continuing the programme of recompletions and workovers
which kept production stable, during June drilling operations
commenced on the first well of the planned six well campaign.
Q2 2022 Operational Highlights
-- Safely commenced the fully funded six well drilling campaign
within the WD-5/6 onshore block:
o Currently drilling the first of four low angle wells, which
will be followed by one horizontal and one deep appraisal well.
o This drilling campaign is expected to lead to a meaningful
increase in production by the end of Q1 2023, when all six wells
are expected to be onstream.
-- Stable production:
o Q2 2022 production volumes averaged 3,093 bopd (Q1 2022: 3,013
bopd; Q2 2021: 3,047 bopd).
o Q2 2022 production sold averaged 3,019 bopd (Q1 2022: 2,929
bopd; Q2 2021: 3,013 bopd).
-- 9 recompletions ("RCPs") (Q1 2022: 5) and 31 workovers (Q1
2022: 24) were completed during the period, with swabbing
continuing across the Onshore and West Coast assets.
-- Ongoing benefits from onshore automation:
o Improved ability to reduce production volatility.
o Reduced response times to well issues .
-- Net average production guidance for 2022 remains 2,900-3,100
bopd (before the impact of the drilling programme and/or
acquisitions) (2021: 3,006 bopd).
Q2 2022 Financial Highlights
-- Q2 2022 average realisation of US$96.8/bbl (Q2 2021: US$59.4/bbl).
-- Operating cash flow pre-tax and pre-hedging of US$6.9m
(unaudited), an increase of 25% compared to the previous quarter
(Q1 2022: US$5.5m).
-- Cash balance of US$15.0m (unaudited) as at 30 June 2022,
reflecting the combination of strong operating cash generation, the
impact of which has been reduced due to hedging related payments
and increased capex, including the purchase of long lead items to
support the drilling campaign.
-- Average operating break-even for Q2 2022 was US$31.3/bbl
(unaudited) (Q2 2021: US$27.8/bbl (unaudited).
Outlook
Having commenced drilling on the first of the six planned
onshore wells, the near-term focus is on completing the 2022
drilling programme safely, on time and on budget, and bringing
these wells onto production in short order. It is expected that the
4 low angle wells will be producing before this year ends, with
each contributing to a meaningful increase in the daily production
rate by the end of 2022. Production is anticipated to continue to
increase into Q1 2023 subject to successful outcomes for the
horizontal well and deeper well, the combination of which is
projected to underpin a material increase in operating cash flow
for 2023, for which no hedging instruments are in place.
Jeremy Bridglalsingh, Chief Executive Officer commented : "The
hallmark of last quarter's performance was continued production
stability and stronger operational cash flows due to higher
realised oil prices, although the impact of these factors was
reduced by hedging costs. We have a clearly defined strategy in
place, focused on increasing our cash generation to enable us to
fund future growth initiatives and deliver cash returns to
shareholders. To this end, the current drilling campaign includes a
diversity of targets, with a mix of different risks and potential
returns. The initial well is progressing well and we expect to
commence drilling on the second well during August.
"During a recent meeting with the Minister of Energy, we
highlighted the merits of Trinity's stable base production and our
plans to grow via the drill bit. This message was well received. In
addition, the Ministry of Energy and Energy Industries has recently
launched the 2022 Onshore and Nearshore Competitive Bid Round,
which Trinity plans to evaluate and may participate if we identify
attractive opportunities."
Enquiries:
Trinity Exploration & Production plc Via Walbrook
Nick Clayton, Non- Executive Chairman
Jeremy Bridglalsingh, Chief Executive Officer
SPARK Advisory Partners Limited ( Nominated Tel: +44 (0)20 3368
Adviser and Financial Adviser) 3550
Mark Brady
James Keeshan
Cenkos Securities PLC (Broker) Tel: +44 (0)20 7397
Leif Powis 8900
Neil McDonald +44(0)131 220 6939
Walbrook PR Limited Tel: +44 (0)20 7933
Nick Rome /Tom Cooper 8780
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 ten licences and, across all of the
Group's assets, management's estimate of the Group's 2P reserves as
at the end of 2021 was 19.73 mmbbls. Group 2C contingent resources
are estimated to be 47.22 mmbbls. The Group's overall 2P plus 2C
volumes are therefore 66.95 mmbbls.
Trinity is quoted on the AIM market of the London Stock Exchange
under the ticker TRIN.
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