REG - Trinity Exploration - Fiscal Reform: Trinidad & Tobago Finance Act 2023

Trinity Exploration & ProductionAnnouncement

04/01/2024 07:00

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RNS Number : 5874Y  Trinity Exploration & Production  04 January 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.

4 January 2024

Trinity Exploration & Production plc

("Trinity" or "the Group" or "the Company")

 

Fiscal Reform: Trinidad and Tobago Finance Act 2023

Trinity Exploration & Production plc (AIM: TRIN), the independent E&P
company focused on Trinidad and Tobago, is pleased to announce that further to
previous announcements, the Trinidad and Tobago Finance Act 2023 ("The Act")
was assented to by the President on 20 December 2023 and is now in effect.

The Act (https://www.ttparliament.org/wp-content/uploads/2023/12/a2023-15.pdf
(https://www.ttparliament.org/wp-content/uploads/2023/12/a2023-15.pdf) )
includes reforms to the Supplemental Petroleum Tax ("SPT") regime. In
particular, effective 1 January 2024, the SPT rates applicable to Small
Shallow Marine Area Producers are shown in the table below.  The Act defines
Small Shallow Marine Area Producers as "a person who carries out petroleum
operations in shallow marine areas under a license, sub-license or contract
and produces less than four thousand barrels of crude per day". Based on this
definition, all of Trinity's existing offshore production as well as future
growth projects that fall within this production threshold, will benefit
significantly from this reform.

 

 Previous SPT - Shallow Marine                      Amended SPT - Shallow Marine
 Oil Price (USD)    Rate of SPT                     Oil Price (USD)     Rate of SPT
 $0.00 to $50.00    0%                              $0.00 to $75.00     0%
 $50.01 to $70.00   15%
 $70.01 to $90.00   20%                             $75.01 to $90.00    18%
 $90.01 to $200.00  20% + 0.2% (P - USD 90.00)      $90.01 to $200.00   18% + 0.2% (P - USD 90.00)
 $200.01 and over   42%                             $200.01 and over    40%
 Note: P = weighted average crude oil price in USD.

 

SPT liability for Trinity's offshore production is estimated at USD4-5m for
2023 and we expect a similar amount, adjusted for production, to be additional
operating cash flow in 2024 and future, at current long term oil price
forecasts, which suggests that the realised price will be below USD75/bbl.

 

Jeremy Bridglalsingh, Chief Executive Officer of Trinity, commented:

 

"We welcome this proactive approach from the Government which will provide us
with additional growth opportunities. These reforms will positively affect our
cashflow throughout 2024 and be of material benefit to the Company's growth
projects, in particular the Trintes and wider Galeota developments."

 

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 ten licences and,
across all of the Group's assets, management's estimate of the Group's 2P
reserves as at the end of 2022 was 17.96 mmbbls. Group 2C contingent resources
are estimated to be 48.88 mmbbls.  The Group's overall 2P plus 2C volumes are
therefore 66.84 mmbbls.

Trinity is quoted on AIM, a market operated and regulated by the London Stock
Exchange Plc, under the ticker TRIN.

 

 

 

 

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