BAYFIELD - Caribbean Speed?

Tuesday, Dec 11 2012 by

There's an RNS out today at

Two problems arise.

Firstly the RNS says that the placing document will be sent to shareholders "by February" - is that Feb 1 or Feb 28? - with an EGM to approve the transaction 14 days later - which takes us to somewhere between Feb 14 and Mar 14. It does not say how long the relisting will take after the EGM - another 2 weeks? another month? So that takes us to somewhere between March 1 and April 14.

This seems to me quite extraordinarily slow. The shares were suspended October 15. That means that the shares will have spent between 5 and 6 months suspended by the time they resume trading. That's long enough to fight a small war.

My holding was not enormous, thank goodness, but I am it still very irritated that my shares are being stuck on hold for so long. Surely it must be possible to get this simple transaction done much quicker?

The second problem is that the RNS includes a table which sets out Bayfield's reserves. Unfortunately whoever drafted it seems not to grasp the basic concept of 1P vs 2P vs 3P reserves and did not get it proof read by someone else who does, so the headings make no sense. They show columns headed 1) "proved" 2) "proved plus probable" and 3) "proved plus probable plus probable" (sic)

and the headings do not line up properly with the columns below them

Of course, this looks like a couple of simple typos and a formatting error. But I am not impressed. Bayfield pays its staff pretty well. So does the PR company. So does the NOMAD/broker. And none of these well paid people spent long enough checking this RNS to spot glaring schoolboy errors which are obvious at first glance?

Are they all asleep? Is that why the trasaction is taking such an unconscionable length of time?

It's simply not good enough. Not good enough at all.

Filed Under: Oil,


The author may hold shares in this company. All opinions are his own. You should check any statements that appear factual and seek independent professional advice before making any investment decision.

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Trinity Exploration & Production plc is an independent oil and gas company focused solely on Trinidad & Tobago. The Company operates a portfolio of producing and development assets both onshore and offshore, in the shallow waters West and East Coasts of Trinidad. The Company operates through the segment of production, development and exploration and extraction of hydrocarbons. It operates in Trinidad & Tobago with assets onshore and offshore the East and West Coast. The Company holds approximately 100% interest in the exploration license for the Pletmos Inshore block, which covers an area of approximately 11,000 square kilometers. The Trinidad & Tobago is a prolific hydrocarbon basin. Trinidad & Tobago offers a fiscal regime and regulatory environment. The Company's total average net production is approximately 2,900 barrels of oil per day (bopd). All non-current assets of the Company are located in Trinidad & Tobago. more »

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10 Posts on this Thread show/hide all

marben100 11th Dec '12 1 of 10

Hi T,

You might find the PDF version of the RNS on the company's own website more readable. ;0) [though it still contains the "proved + probable + probable" error]

I met with the head of the LSE's RNS service some months back and learnt that quite a bit of "munging" goes on between a company issuing an RNS and it working its way through the LSE's systems - including some manual processing/formatting. Quite often tables as presented on the LSE's service do not come out well-formatted, in my experience. I did suggest that a PDF based RNS service (as other exchanges offer) would be more satisfactory, allowing diagrams, photos etc to be included in RNSs, and eliminating the need for format transformations.

I understand that the LSE is reviewing its RNS service.


I am not particularly surprised by the delay to readmission. The only other case like this I have knowledge or was Caledon Resources, when it transformed from being a gold explorer to a coal miner, via a similar takeover deal. It took a similar amount of time to complete and for the shares to be readmitted. Unfortunately, legal and regulatory matters do seem to take forever to complete.



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marben100 9th Jan '13 2 of 10

Proposed re-admission, as "Trinity Exploration & Production plc" in mid-Feb. Seeking to raise $50-$90m in a placing:

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tournesol 10th Jan '13 3 of 10

Actually the announcement does NOT say that re-admission will be mid Feb.

Close reading of the RNS reveals that it says nothing at all about the timing of re-admission.

I called the co for clarification the morning the RNS was issued and a spokesman said he would not like to be quoted but..... the mid Feb date is when they expect to issue a circular to shareholders calling for an EGM. The pre-condition for that is the completion of regulatory acceptance processes. So if regulatory stuff completes pre mid Feb, then an EGM circular will go out in mid Feb. Then some weeks later there will be an EGM to seek shareholder approval for the merger AND also for the raising of additional capital by issuing new shares. If the EGM approves all that, then the placing will need to be completed BEFORE trading of the relisted entity can be resumed (if resume is the right word to use in this context).

So my expectation is that the earliest we can expect to have an opportunity to trade is likely to be end March or first half of April.

I look forward to it. I'm being held here against my will and will be glad to exit.

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marben100 10th Jan '13 4 of 10

In reply to tournesol, post #3

True re re-admission, T - it will take some time for all the formalities to be completed, but the new Trinity looks like quite an interesting proposition to me, if the price is right...

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tournesol 10th Jan '13 5 of 10

What's your opinion of the management team? The new CEO is a relaxed and fluent speaker if the video clips on Trinity's website are anything to go by, but his experience of managing an E&P seems somewhat nugatory. And i've never taken to Mr Dingwall. They just do not present as a management team I want to entrust with my money frankly. I'll be out at the first opportunity......

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marben100 12th Jan '13 6 of 10

In reply to tournesol, post #5

Hi T,

Well, I have to admit to not having much knowledge of Dingwall, but Venture which he was CEO of, certainly proved a successful investment for me, so I personally don't have a problem there.

Pemberton's background is more financial than technical (but specialising in the energy sector). I don't see that necessarily as a problem - but means that the technical ability of the rest of the team will be leant on, so we need to look further. To a fair extent that is compensated for by Dingwall's technical experience. Ian MacDonald, COO and board member, is a petroleum engineer with 25 years experience with BP & Amoco - should bring the right skills. Jon Murphy & Anthony Brash bring further significant techical expertise, according to the summary CVs.

Another factor in favour of the management is that Trinity has successfully been built up from scratch, starting as a spin out from Venture in 2005, doing several deals along the way, culminating in the reverse T/O of Bayfield. Finally, Dattels & Mellon have backed Trinity's management, via Regent Pacific, and have done well from that.


Most importantly, the combined business has some decent cash-generative assets.

I am not currently invested. Details of assets, production history/plans, financial history, and importantly price, will determine whether I am prepared to invest or not.

I am considering seeing whether I can arrange a presentation for investors interested in the placing. Please contact me if anyone is interested.



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marben100 16th Jan '13 7 of 10

In reply to marben100, post #6

Finally, Dattels & Mellon have backed Trinity's management, via Regent Pacific, and have done well from that.

Hmmm... looks like I have to correct that statement. This just published by RP:


...The principal reason for the expected loss for the year ended 31 December 2012 is the realised loss on Avion Gold Corporation and the anticipated impairment in relation to the Group’s investment in Project 1 (owned and operated through West China Coking & Gas Company Limited) and Trinity Exploration and Production Limited, all of which are non-cash items...

Would definitley have to look long and hard at the proposed offer before considering an investment!

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marben100 28th Jan '13 8 of 10

Regent Pacific subscribes for 20.5m Bayfield shares @ 12p (to be converted into 2.05m New Trinity shares following consolidation): 

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tournesol 29th Jan '13 9 of 10

I note that the information provided to me on Jan 10 about the resumption of trading has turned out to be totally inaccurate.

Seems somehow fitting that even the routine admin surrounding the Bayfield fiasco has been poorly executed.

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tournesol 2nd Feb '13 10 of 10

Just for the sake of completeness, I will disclose that I sold earlier this week at an average of around 14.25p which represents a loss of over 75% of my purchase price (60p in the IPO).

Another poor outcome.

On reflection it is clear that I overweighted my confidence in management - their due diligence and their execution have both proved mediocre/inadequate and they have turned out to lack grit and resolve. Their bad for being so limp. My bad for being too complacent/relaxed. I should probably have picked up earlier on the signals that things were going awry.

More irritating than my failure to spot their failings is my error in overweighting my holding. I had 8% of my investable funds in BEH, so lost 6%. I should have limited my exposure to 2% max then the loss would have been much less painful.

Still, it's always good to learn.

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