Trinity, the leading independent E&P company focused on Trinidad and Tobago, today announces the sale of surplus casing and tubing to Rigtech Services Limited, Blanket Security Limited and Well Services Petroleum Company Limited (“Purchasers”) for US$3.5 million.
The sale of casing and tubing to the Purchasers constitute a related party transaction under the AIM Rules as Anthony Brash, a Director of those entities, is also a Board member and shareholder of Trinity. The directors of Trinity (with the exception of Anthony Brash) consider, having consulted with RBC Capital Markets in its capacity as the Company’s nominated adviser, that the terms of the Transactions, are fair and reasonable insofar as the shareholders of Trinity are concerned.
The proceeds of the transaction will be used to reduce amounts owing to Purchasers in relation to services provided by the Purchasers to the Company. The fall in the casing and tubing market internationally means that the sale will result in a loss on sale of US$1.3 million for accounting purposes.
The rationalisation of this excess inventory has allowed Trinity to consolidate its warehousing and inventory storage thereby achieving significant leasehold rental savings.