TIDMTRIN
RNS Number : 6135X
Trinity Exploration & Production
27 April 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.
27 April 2023
Trinity Exploration & Production plc
("Trinity" or "the Group" or "the Company")
Q1 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
31 March 2023 ("Q1 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 at an inflection point as we prepare to drill the
Jacobin well, testing the first of our nine Hummingbird deeper
prospects. The rig has mobilised and the well will spud in the
coming days. The well is designed to test the extensive deeper
onshore play and collect data to calibrate and define future
activity across Trinity's existing onshore acreage and the Buenos
Ayres block, should the Company be successful in the ongoing
licence round.
The ABM-151 well was successfully returned to production in
March and, since this time, has performed consistently above
expectations. The well is currently producing at a managed
stabilised rate of around 140 bopd, whilst producing encouraging
well performance data.
As reported, we suffered from two setbacks recently: the cyber
incident in December and then, in April, a generator fire on the
Trintes Bravo platform. I'm pleased to say that we avoided a
lengthy disruption from either event and the team responded in a
calm and professional manner. Trintes returned to production the
day following the fire and Bravo itself within eight days. We are
grateful for the help of the Ministry of Energy and Energy
Industries, with whom our excellent working relationship proved
invaluable, and I am also thankful for the team's rapid and
level-headed response. We see this focus and commitment in other
operational delivery such as the successful performance of ABM-151
and look forward to updating shareholders on our further progress
at a very busy and exciting time for Trinity. "
Q1 2023 Operational Highlights
-- The Company maintained solid production performance over the
quarter with Q1 2023 sales volumes averaging 2,899 bopd (Q4 2022:
2,961 bopd; Q1 2022: 2,929 bopd). This sales performance, which is
broadly in line with the prior period, comes as a result of ongoing
well optimisation, drilling, workovers and recompletion
activities.
-- During Q1 2023:
- 2 recompletions ("RCPs") (Q4 2022: 1; Q1 2022: 5) were completed.
- 39 workovers (Q4 2022: 27; Q1 2022: 24) 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
following an extensive refurbishment of surface facilities and the
installation of remote surveillance technology. Between restart and
the end of the Period the well flowed at an average rate of 175
bopd. The well is currently producing at a managed rate of 140 bopd
and Trinity continues to monitor the well closely.
Q4 2022 Financial Highlights
-- Average realisation of US$ 67.9 /bbl for Q1 2023 (Q4 2022:
US$ 75.4/bbl, Q1 2022: US$ 83.1/bbl) reflects lower prevailing oil
prices in the Period.
-- EBITDA , pre-hedging(1) , in Q1 2023 of US$ 5.3 million
(unaudited) (Q4 2022 US$ 7.9 million (unaudited); Q1 2022 US$ 7.9
million).
-- Operating break-even(2) , pre-hedging(1) , Q1 2023 of US$
35.4 /bbl (Q4 2022 US$ 31.4/bbl; Q1 2022 US$ 31.1/ 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$ 11.4 million (unaudited) as at 31 March
2023 versus US$ 12.1 million (unaudited) as at 31 December 2022 and
US$ 17.5 million as at 31 March 2022.
-- The Group had drawn borrowings (overdraft) of US$ 2.3 million
as at 31 March 2023 (US$ 2.7 million as at 31 December 2022 and US$
2.7 million as at 31 March 2022).
-- The Company continued to repurchase its Ordinary Shares in
accordance with the second buyback programme announced on 24
October 2022 and, during the Period, repurchased an additional
312,000 shares (0.8% of the Company's shares in issue).
The second buyback programme concluded on 26 April 2023 with a
further 48,000 shares repurchased during April 2023 bringing the
total number of shares held in treasury at 26 April 2023 to
1,432,000 ( 3.6 % of the Company's shares in issue).
The Board will consider a further share buyback programme.
Outlook
Jacobin Update
Preparation of the site for the upcoming Jacobin well to test
the deep Miocene play fairway in Licence PS-4 is complete. Well
Services' Rig 60 mobilisation is underway currently with the first
elements of the rig arriving on site and are being assembled. The
well is expected to spud in the coming days.
2022 Onshore and Nearshore Competitive Bid Round
On 9 January 2023, Trinity submitted a bid for the Buenos Ayres
block in the 2022 Onshore and Nearshore Competitive Bid Round
conducted by the Government of Trinidad and Tobago Ministry of
Energy and Energy Industries .
Buenos Ayres is located immediately to the west of Trinity's
existing Palo Seco area interests comprising Blocks WD-5/6, WD-2
and PS-4 and, at its closest, is only around 500 metres from the
Company's existing sub-licences.
If awarded, Trinity would seek to take advantage of its unique
understanding of the stratigraphy in this area onshore Trinidad,
where there are strong analogues to the Company's existing acreage,
and quickly progress from the drilling phase to production.
Award of licences from the Bid Round is now anticipated in
May.
Cyber Incident
Following the sophisticated cyber incident in December 2022,
Trinity's IT team and its external advisers have successfully
returned its administrative systems to full capacity incorporating
learnings from the incident and embedding more resilient IT
infrastructure, cyber security systems and procedures.
This work to high-grade IT and associated security systems has
delayed the normal year-end financial close process. However, the
external financial audit is underway and the Company still expects
to issue its audited 2022 financial statements before 30 June 2023,
in line with its legal and regulatory requirements.
Trintes Field Incident
On the evening of 10 April 2023, a fire occurred in one of the
two generators on the Trintes Bravo platform. Production across the
field was halted and the fire was contained. Production restarted
from Alpha and Delta platforms on 11 April 2023.
Four operators, all Trinity staff, were on Bravo at the time of
the incident and, having suffered some burns and from smoke
inhalation, all are now recovering well and expect to resume work
imminently.
Following approval from the Ministry of Energy and Energy
Industries, received on 17 April 2023, the Company successfully
restored oil production from all previously producing wells on the
Bravo platform on 18 April 2023.
Production from the field is in-line with pre-incident levels at
approximately 1,010 bopd.
Enquiries:
Trinity Exploration & Production plc Via Vigo Consulting
Nick Clayton, Non- Executive Chairman
Jeremy Bridglalsingh, Chief Executive Officer
Julian Kennedy, Chief Financial Officer
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 / Patrick d'Ancona +44 (0)20 739 0 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 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 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. Ramsook is also a
Senior Lecturer at the University of the West Indies and Fellow of
the Geological Society (FGS) of London. He is a Geologist by
background with 18+ 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.
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
UPDKQLFLXZLEBBQ
(END) Dow Jones Newswires
April 27, 2023 02:00 ET (06:00 GMT)
Trinity Exploration & Pr... (LSE:TRIN)
Historical Stock Chart
From Jun 2024 to Jul 2024
Trinity Exploration & Pr... (LSE:TRIN)
Historical Stock Chart
From Jul 2023 to Jul 2024