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RNS Number : 1175M Trinity Exploration & Production 26 April 2024
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.
26 April 2024
Trinity Exploration & Production plc
("Trinity" or "the Group" or "the Company")
Q1 2024 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 2024 ("Q1 2024" 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's core business remains robust and cash-generative, with no long-term
debt. We are focused on three immediate priorities:
1) Maximising cash flow from our existing producing assets in a safe and
efficient manner.
2) Rebuilding cash following the drilling of the Jacobin well in 2023
with a strong focus on cost management; and
3) Maturing detailed engineering for our two principal projects,
particularly Phase 1 (Trintes 2P) of the Galeota Development and preparing
plans for the exploration of the Buenos Ayres block, to a point that they can
attract new investment capital or being monetised through sale or farm-down.
I look forward to updating shareholders throughout the year as we execute our
activities."
Jacobin-1 Operations
By mid-January production rates and flowing pressures from Jacobin had fallen
to approximately 10 bopd with the well struggling to flow naturally, so the
decision was taken to convert the well to pump. The pump was run in late
February and fluids were brought to surface on 1 March 2024. However,
significant quantities of sand were also being produced and, by late March,
the pump failed with a sand blockage.
The forward plan for Jacobin, which has been submitted to Heritage Petroleum
Company Limited and the Ministry of Energy and Energy Industries for approval,
is to recomplete the Jacobin well up-hole in the Lower Forest horizon with
production expected in the second half of May 2024.
Galeota / Trintes Development
Work on Phase 1 (Trintes 2P infill drilling) continued in Q1 and was focused
on using the updated static and dynamic reservoir models to complete the
primary target well bottom hole locations and well paths for infill wells,
assuming drilling from the Trintes Delta platform. The updated static model
for Trintes will be expanded to include the entire Galeota anticline structure
during the remainder of 2024, including the TGAL area that the Mobile
Production Unit concept would initially focus on.
Buenos Ayres Block
On Buenos Ayres, work on the Environmental Impact Assessment continues to
progress with the Certificate of Environmental Clearance Application expected
to be submitted in late Q2 / early Q3 2024, along with ongoing subsurface
evaluation.
Idle Well Study
Trinity has embarked on an idle well study, with the initial phase including
technical reviews of approximately 250 wells, with field investigations having
commenced on the first 30 of these wells which has added additional wells to
the swabbing programme.
Reserves
Further to the Company's announcement on 15 April 2024 the following tables
provide a reconciliation, by operating area, of the revisions between Year-End
2022 and Year-End 2023. All data is Net Working Interest ("Net WI").
Comparison of YE 2022 vs YE 2023 2P Reserves
Asset 2P Reserves 2023 Production 2P Revisions 2P Reserves
YE 2022 YE 2023
mmstb mmstb mmstb mmstb
Onshore 6.53 -0.55 -1.72 4.26
East Coast 9.26 -0.34 -1.14 7.78
West Coast 2.17 -0.13 -1.18 0.86
Total 17.96 -1.02 -4.03 12.91
Comparison of YE 2022 vs YE 2023 2C Resources
Asset 2C Resource 2023 Production 2C Revisions 2C Resource
YE 2022 YE 2023
mmstb mmstb mmstb mmstb
Onshore 8.62 N/A -4.88 3.74
East Coast 36.81 N/A -5.50 31.31
West Coast 3.45 N/A 0.18 3.63
Total 48.88 N/A -10.20 38.68
Q1 2024 Operational Highlights
· Q1 2024 sales volumes averaged 2,669 bopd (Q1 2023: 2,899 bopd, Q4
2023: 2,736 bopd).
· The Company maintains its Full-Year 2024 sales volume guidance of
2,600-2,700 bopd.
Average Annual and Quarterly Sales by Region
Asset 12m 2023 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024
bopd bopd bopd bopd bopd bopd
Onshore 1,495 1,548 1,477 1,493 1,462 1,383
East Coast 943 1,038 985 843 908 912
West Coast 353 314 362 370 365 373
Total 2,790 2,899 2,824 2,705 2,736 2,669
· During Q1 2024:
- 33 workovers were completed (Q1 2023: 39; Q4 2023: 33).
- There was one recompletion in the Period (Q1 2023: two; Q4 2023:
three).
- Swabbing operations continued across Onshore and West Coast
assets.
Q1 2024 Financial Highlights
The Group reports its consolidated financial information half yearly, in its
Annual Report & Accounts and Interim Results, in accordance with UK
adopted International Accounting Standards and the London Stock Exchange's AIM
Rules for Companies. Quarterly, the Group provides unaudited information for
guidance.
· Average realised oil price of USD 69.9/bbl for Q1 2024
(Q1 2023: USD 67.9/bbl; Q4 2023: USD 71.6/bbl).
· EBITDA, pre-hedging(1) in Q1 2024 of USD 4.0 million (unaudited)
(Q1 2023 USD 5.3 million).
· Operating break-even(2), pre-hedging(1), Q1 2024 of USD 44.3/bbl
(Q1 2023: USD 35.4/bbl; Q4 2023: USD 39.8/bbl).
(1 ) The Group had no hedging in place in 2023 or 2024.
(2) Operating break-even is the realised price/bbl where the
adjusted EBITDA/bbl for the Group is equal to zero.
· Cash balance of USD 8.6 million (unaudited) at 31 March 2024
versus USD 9.8 million (unaudited) at 31 December 2023 and
USD 11.4 million (unaudited) at 31 March 2023.
· The Group had drawn borrowings (overdraft) of USD 4.0 million at 31
March 2024 (USD 4.0 million at 31 December 2023 and USD 2.3 million at 31
March 2023).
· VAT refunds collected in Q1 2024 totalled USD 0.8 million. VAT
refunds outstanding as at 31 March 2024 are USD 5.1 million reflecting
expenditures, principally on the Jacobin well in 2023.
Investor Presentation
The Company will host a presentation through the digital platform Investor
Meet Company. The confirmed time and date will be announced separately.
Investors can sign up to Investor Meet Company for free and add to meet
Trinity Exploration via the following link
https://www.investormeetcompany.com/trinity-exploration-production-plc/register-investor
(https://www.investormeetcompany.com/trinity-exploration-production-plc/register-investor)
. Investors who already follow Trinity on the Investor Meet Company platform
will automatically be invited.
Enquiries:
Trinity Exploration & Production plc Via Vigo Consulting
Jeremy Bridglalsingh, Chief Executive Officer
Julian Kennedy, Chief Financial Officer
Nick Clayton, Non-Executive Chairman
SPARK Advisory Partners Limited +44 (0)20 3368 3550
(Nominated Adviser and Financial Adviser)
Mark Brady
James Keeshan
Cavendish Capital Markets Limited (Broker) +44 (0)20 7397 8900
Leif Powis +44 (0)131 220 6939
Derrick Lee
Neil McDonald
Vigo Consulting Limited t (mailto:trinity@vigoconsulting.com) rinity
(mailto:trinity@vigoconsulting.com) @vigoconsulting.com
Finlay Thomson (mailto:trinity@vigoconsulting.com)
Patrick d'Ancona +44 (0)20 7390 0230
About Trinity (www.trinityexploration.com (http://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 licences and,
across all of the Group's assets, management's estimate of the Group's 2P
reserves as at the end of 2023 was 12.91 mmstb. Group 2C contingent
resources are estimated to be 38.68 mmstb. The Group's overall 2P plus 2C
volumes are therefore 51.58 mmstb.
Trinity is quoted on AIM, a market operated and regulated by the London Stock
Exchange Plc, under the ticker TRIN.
Qualified Person's Statement
The technical information contained in the announcement has been reviewed and
approved by Mark Kingsley, Trinity's Chief Operating Officer. Mark Kingsley
(BSc (Hons) Chemical Engineering, Birmingham University) has over 35 years of
experience in international oil and gas exploration, development and
production and is a Chartered Engineer.
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.
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