Trinity, the independent E&P company focused on Trinidad and Tobago, today provides an update on its operations for the three-month period ended 31 March 2018.
During the period, Trinity's low-cost work programme continued to underpin high margin production and the further strengthening of its balance sheet. The Company commenced onshore drilling with the focus on near and medium-term production and value creation.
Q1 Operational Highlights
Strong Balance Sheet
Onshore Strategy Delivering
The resurgence in activity levels on our onshore assets has effectively lifted base level production from which to grow. 2017 saw an intense focus on RCPs as well as ongoing preparation for infill drilling operations with dedicated subsurface teams working up incremental locations for future drilling. Trinity's booked onshore reserves only reflect wells identified and budgeted, as opposed to the full well inventory potential across Trinity's extensive acreage position, and the benefit of this subsurface work will be reflected in Trinity's end 2017 reserves. This ability to grow reserves from desktop subsurface work rather than being reliant on exploration drilling, offers a low risk approach to value growth.
The Company will announce its audited full year 2017 results, and its annual internal reserves review, in May.
The Company will continue its low-cost production work programme focusing on RCPs, reactivations and workovers with a view to further driving profits and near-term growth. In addition, the recently commenced onshore drilling programme provides near and medium term production growth potential for the Company. Our subsurface team will continue to generate RCP candidates, drilling opportunities and well reactivations to grow our drilling inventory. In the longer term, further value creation is envisaged from the offshore Galeota Licence. This phased and risk mitigated growth strategy provides visibility for future value growth as the Company continues to increase cash generation, strengthen its balance sheet and further reduce its liabilities.
Bruce A. I. Dingwall CBE, Executive Chairman of Trinity, commented:
“The Company continues to focus on carefully managed high margin profitable production. Our proven low-cost production model continues to be highly cash generative, enabling the Company to pay down debt faster than anticipated. We are keen to keep our strategy simple but remain excited by the multiple growth pathways available over the near, medium and long-term from a significant asset base of reserves and resources. The Company has scaled up operations with the recommencement of drilling. This provides further scope for the Company to build on the upward production trajectory and we very much look forward to updating the market further in due course”.
Competent Person's Statement
The information contained in this announcement has been reviewed and approved by Graham Stuart, the Company's Technical Advisor who has 35 years of relevant global experience in the oil industry. Mr. Stuart holds a BSC (Hons) in Geology. Reserves and resources in this announcement are based on internal management estimates in accordance with SPE PRMS guidelines (Petroleum Resources Management System 2007 & Revisions).