Trinity Exploration & Production Hedging Update (2196W)
13 November 2017 - 6:01PM
UK Regulatory
TIDMTRIN
RNS Number : 2196W
Trinity Exploration & Production
13 November 2017
Trinity Exploration & Production plc
("Trinity" or "the Group" or "the Company")
Hedging Update
Trinity, the independent E&P company focused on Trinidad and
Tobago, today provides an update on its hedging programme.
Trinity has taken advantage of the recent improvement in the oil
price to further hedge its exposure to the oil price for 2018.
-- Trinity has entered into a zero cost collar with a WTI price
floor of US$45/bbl and a cap of US$59.80 for 25,000 bbls per month
over the period from 1 January 2018 to 31 December 2018
o Trinity's ability to implement the zero cost collar structure
attests to its growing financial strength
o The zero cost collar structure gives substantial downside
protection below the floor price and optimizes the amount of
capital which can be deployed on driving profitable production
growth and meeting the Company's ongoing financial obligations
during 2018
o In addition, the quantum of the hedge ensures that Trinity
would continue to benefit from an appreciation in WTI above the cap
for the majority of its production
-- The existing hedge, which comprised put options for 31,645
bbls per month at a WTI strike price of US$40/bbl, remains in place
until 31 March 2018
-- The combined effect of both hedges in Q1 2018 is to
significantly mitigate downside exposure to WTI during this quarter
when drilling is set to commence
Bruce A. I. Dingwall CBE, Executive Chairman of Trinity,
commented: "The recent improvement in the oil price has provided an
attractive opportunity to further hedge our oil price exposure for
2018. The zero cost collar structure optimizes the amount of
capital that can be allocated to exploiting our significant
reserves whilst meeting our ongoing financial obligations. "
Enquiries:
Trinity Exploration & Production Tel: +44 (0) 131
Bruce Dingwall CBE, Executive 240 3860
Chairman
Jeremy Bridglalsingh, Chief
Financial Officer
SPARK Advisory Partners Limited Tel: +44 (0) 203
(NOMAD & Financial Adviser) 368 3550
Mark Brady
Miriam Greenwood
James Keeshan
Cantor Fitzgerald Europe (Broker) Tel: +44 (0) 207
David Porter 894 7000
Sebastien Maurin
Whitman Howard Limited (Equity Tel: +44 (0) 207
Adviser) 659 1234
Nick Lovering
Walbrook PR Limited trinityexploration@walbrookpr.com
Nick Rome or Tel: +44 (0) 207
933 8780
About Trinity (www.trinityexploration.com)
Trinity is an independent oil and gas exploration and 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 2P reserves as at the end of 2016 was 21.3 mmbbls.
Group 2C contingent resources are estimated to be 21.1 mmbbls. The
Group's overall 2P plus 2C volumes are therefore 42.3 mmbbls.
Trinity is listed on the AIM market of the London Stock Exchange
under the ticker TRIN.
This information is provided by RNS
The company news service from the London Stock Exchange
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