Bayfield was the second child of the team that gave us Burren Energy some years ago. It was launched and funded by ex-Burren management using some of the substantial proceeds they pocketed when Burren was sold to ENI.
Burren had provided a text book example of taking a poorly managed asset in Turkmenistan, knocking it into shape, driving production up and costs down and using the resulting cashflow to expand into other areas. Their second asset was the M'Boundi field in the Congo, which proved extremely successful. I forget who their major partner was there, but when that partner made a very ill timed decision to sell out to ENI , Burren was able to exercise its pre-emption rights to acquire a second slice of the well developed cake at a bargain price. Eventually ENI decided it wanted the whole of the gateau and bought Burren lock stock and barrels.
The Burren management team then retired to a life of idle luxury. After a while that palled. After all you can't spend your whole life polishing your Aston Martin's lithe bodywork, exfoliating your yacht's elegant bottom or getting hot and sweaty with your personal trainer. And so the restless intellect and creative imagination of the Burrenites devised a cunning plan. Why not set up an E&P in Trinidad? Then they could do what they were so good at and still have it large at the marina. Trinidad Marina is after all an ideal location for those who wish to combine an interest in lithe bodywork, elegantly exfoliated bottoms and hot and sweaty physical activity. And it is a convenient place to park a seismic survey ship and a drilling rig or two.
I was one of those who did well out of Burren. I encountered Finian O'Sullivan, the CEO, at an Oil Barrel conference and was impressed. He expended more energy in 5 minutes on stage than I do in a normal week. I was so impressed by Finian and the story, that I went out at coffee time and bought the shares. Over the next few years I traded a little around a core position which built as time passed. By the end, I had a holding which was significant to me and the eventual exit was a big pay-out.
As an investor I've not had a good time these past…
Commiserations. Only bit to add is that the employee to bopd ratio looks about right for Trinidad if RRL's figures are anything to go by - I think they actually have more staff on site now for about the same output.
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