Trinity Exploration & Production Q1 2019 Operational Update (4138W)
17 April 2019 - 4:00PM
UK Regulatory
TIDMTRIN
RNS Number : 4138W
Trinity Exploration & Production
17 April 2019
RNS ANNOUNCEMENT: The information communicated in this
announcement contains inside information for the purposes of
Article 7 of Regulation 596/2014.
Trinity Exploration & Production plc
("Trinity" or "the Group" or "the Company")
Q1 2019 Operational Update
Focus on High Angle Well ("HAW") planning and the TGAL
Development Plan
Trinity, the independent E&P Company focused on Trinidad and
Tobago, today provides an update on its operations for the
three-month period ended 31 March 2019 ("Q1 2019" or "the
period").
Production volumes over the quarter were in line with
expectations and the guidance provided at the time of the 2018
final results. The Company's focus over the period was on
maintaining production across its operations, continued sub-surface
mapping and development of new infill drilling locations across all
assets. The Company submitted the various drilling permit
applications for its first HAW during the period. Work also
continued with various contractors on the TGAL Development.
Significantly, the Company maintains high operating margins and a
strong balance sheet from which to leverage future growth.
Q1 Operational Highlights
-- 11% year-on-year increase in Group average production volumes
to 3,020 bopd for Q1 2019 (Q1 2018: 2,721 bopd). This represented a
6% quarter-on-quarter reduction compared to the previous quarter
(Q4 2018: 3,205 bopd), when six new wells commenced production for
the first time
-- No new drilling took place in Q1 2019, but 2 RCPs (Q4 2018:
4) and 34 workovers (Q4 2018: 43) were completed during the period,
with swabbing continuing across all onshore assets
-- Production volumes for the remainder of 2019 will depend on
the timing and success of the planned drilling programme, which is
currently expected to comprise up to 8 new wells (including at
least one HAW) and at least 7 RCPs during the remainder of 2019
-- Whilst the results from the HAW will only be known on
completion, HAWs could be expected to yield initial production
rates and reserves of over 2x those from conventional vertical
wells (for commensurately less capital expenditure)
-- Contingent upon the prevailing oil price environment, and
subsequent investment, net average production for 2019 is expected
to be in the range of 3,000 - 3,300 bopd, which was the guidance
issued at the time of the 2018 final results
Q1 Financial Highlights
-- Cash balance of US$12.3 million (unaudited) as at 31 March
2019 (US$10.2 million (audited) as at 31 December 2018)
-- The outstanding receivable of US$2.6 million (unaudited) due
from Petrotrin is expected to be received by the end of H1 2019 and
all subsequent amounts due from Heritage have continued to be
received according to their agreed payment terms
Outlook
Trinity is continuing to focus on maintaining its healthy
operating margins and strong balance sheet from which it can grow
production in line with previous guidance. The timing and scale of
the forward drilling programme is yet to be determined and will be
subject to sensibly optimising profitability and cash-flow through
the year.
Development planning at Trinity's offshore TGAL development
continues to move ahead positively with engineering work on
flow-lines and onshore to offshore power transmission complete.
Detailed design on the platform continues and will be finalised in
the next few months.
Bruce Dingwall, CBE, Executive Chairman of Trinity,
commented:
"The continuing year-on-year production growth reflects the
success of all our operating activities be they production
optimisation, reactivations, recompletions and new drilling. Our
low cost operating model combined with increasing production
year-on-year has led to increasing margins, with EBITDA/bbl having
increased by 169% to US$18.3/bbl over the last two financial years.
The next stage in Trinity's evolution is to increase Initial
Production rates and recoverable reserves from new wells through
the drilling of HAWs alongside our incessant attention to
protecting base production and continuing to work up our offshore
TGAL development. Given the strength of our business model, the
ongoing work programme and visibility afforded by our balance
sheet, we face the future with confidence."
Enquiries
For further information please visit www.trinityexploration.com
or contact:
Trinity Exploration & Production plc +44 (0)131 240 3860
Bruce Dingwall CBE, Executive Chairman
Jeremy Bridglalsingh, Chief Financial Officer
Tracy Mackenzie, Corporate Development
Manager
SPARK Advisory Partners Limited (Nominated
Adviser and Financial Adviser) +44 (0)20 3368 3550
Mark Brady
Miriam Greenwood
Andrew Emmott
Cenkos Securities PLC (Broker)
Joe Nally (Corporate Broking)
Neil McDonald
Beth McKiernan
Derrick Lee +44 (0)20 7397 8900
Pete Lynch +44 (0)131 220 6939
Whitman Howard Limited (Equity Adviser) +44 (0)20 7659 1234
Nick Lovering
Hugh Rich
Walbrook PR Limited +44 (0)20 7933 8780
Nick Rome trinityexploration@walbrookpr.com
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 2018 was 24.5 mmbbls.
Group 2C contingent resources are estimated to be 18.8 mmbbls. The
Group's overall 2P plus 2C volumes are therefore 43.3 mmbbls.
Trinity is quoted on the AIM market of the London Stock Exchange
under the ticker TRIN.
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.
END
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