REG - Trinity Exploration - Q3 2024 Corporate Update

Trinity Exploration & ProductionAnnouncement

18/10/2024 07:00

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RNS Number : 6844I  Trinity Exploration & Production  18 October 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.

18 October 2024

Trinity Exploration & Production plc

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

 

Q3 2024 Corporate 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 30 September 2024 ("Q3 2024" or "the Period").
 The information contained herein has not been audited and may be subject to
further review and amendment.

Q3 2024 Operational Highlights

·    Q3 2024 sales volumes averaged 2,471 bopd (Q3 2023: 2,705 bopd, Q2
2024: 2,522 bopd).

·    Sales volumes declined in the Period due to deferral of some well
recompletion and workover activities from Q3 2024 to Q4 2024 on Onshore and
East Coast assets.  In addition, the Onshore wells were impacted more heavily
than anticipated by unplanned power outages leading to well shutdowns. Plans
are being implemented to mitigate this going forward.

Average Annual and Quarterly Sales by Region

 Asset       12m 2023  Q3 2023  Q2 2024  Q3 2024

             bopd      bopd     bopd     bopd
 Onshore     1,495     1,493    1,303    1,295
 East Coast  943       843      823      793
 West Coast  353       370      396      383
 Total       2,790     2,705    2,522    2,471

 

·    During Q3 2024:

-      28 workovers were completed (Q3 2023: 37; Q2 2024: 18).

-      There was one recompletion in the Period (Q3 2023: nil; Q2 2024:
four).

-      Swabbing operations continued across Onshore and West Coast
assets.

 

Q3 2024 Financial Highlights

The Group reports its consolidated financial information annually and 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 66.9/bbl for Q3 2024
(Q3 2023: USD 72.5/bbl; Q2 2024: USD 73.2/bbl).

·    Cash balance of USD 7.2 million (unaudited) at 30 September 2024
versus USD 8.0 million (unaudited) at 30 June 2024 and USD 8.4 million
(unaudited) at 30 September 2023.

·    The Group had drawn borrowings (overdraft) of USD 2.0 million at
30 September 2024 (USD 3.0 million at 30 June 2024 and USD 2.0 million at
30 September 2023).

Recommended All Cash Offer for Trinity by Lease Operators Limited ("Lease
Operators")

On 2 August 2024, the boards of directors of Trinity and Lease Operators
announced that they had reached agreement on the terms of a recommended cash
acquisition for the entire issued, and to be issued, share capital of Trinity
by Lease Operators at a price of 68.05 pence per Trinity Share (the
"Acquisition"), to be effected by means of a Court-sanctioned scheme of
arrangement under Part 26 of the Companies Act 2006 (the "Scheme").

On 8 October 2024, Trinity announced that a circular in relation to the Scheme
(the "Scheme Document") setting out, among other things, a letter from the
Chairman of Trinity, the full terms and conditions of the Scheme, an
explanatory statement pursuant to section 897 of the Companies Act 2006, an
expected timetable of principal events, notices of the Court Meeting and
General Meeting and details of the actions to be taken by Trinity Shareholders
were published on Trinity's website at
https://trinityexploration.com/investors/lease-operators-offer/
(https://trinityexploration.com/investors/lease-operators-offer/) .

Notices convening the Court Meeting and General Meeting, both of which will be
held at the offices of Cavendish Capital Markets Limited, 1 Bartholomew Close,
London EC1A 7BL on 30 October 2024, are set out in the Scheme Document.  The
Court Meeting will start at 10.00 a.m. and the General Meeting at 10.15 a.m.
(or as soon thereafter as the Court Meeting shall have been concluded or
adjourned).

 

 

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.

 

On 2 August 2024, the boards of directors of Trinity and Lease Operators
announced that they had reached agreement on the terms of a recommended cash
acquisition for the entire issued, and to be issued, share capital of Trinity
by Lease Operators at a price of 68.05 pence per Trinity Share (the
"Acquisition"), to be effected by means of a Court-sanctioned scheme of
arrangement under Part 26 of the Companies Act 2006 (the "Scheme"). Further
information on the Acquisition can be found on Trinity's website at: Trinity's
website at https://trinityexploration.com/investors/lease-operators-offer/

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.

Publication on Website

In accordance with Rule 26.1 of the Takeover Code a copy of this announcement
will be available free of charge, subject to certain restrictions relating to
persons resident in restricted jurisdictions, on the investor relations
section of Trinity's website at
https://trinityexploration.com/investors/lease-operators-offer/  by no later
than 12.00 noon (London time) on the business day immediately following this
announcement. The content of the website referred to in this announcement is
not incorporated into and does not form part of this announcement.

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