30th September 2014
Trinity, the leading independent E&P company focused on Trinidad & Tobago, is pleased to present its interim results for the six months ended 30 June 2014.
Financial highlights
- Revenues of USD 62.3 million (H1 2013: USD 54.5 million)
- EBITDA before exploration write-off and exceptional items of USD 12.5 million (H1 2013: USD 15.8 million)
- Operating profit before exploration costs write-off and exceptional items of USD 3.8 million (H1 2013 : USD 9.5 million)
- Cash inflow/(outflow) from operating activities USD 4.4 million (H1 2013 : USD (19.4) million)
- Net Loss After Tax of USD 22.9 million (H1 2013: profit of USD 53.6 million)
- Cash balance at period end of USD 9.6 million (H1 2013: 57.4 million) with USD 20.0 million in undrawn credit facilities
Operating highlights
- Net production of 3,795 boepd (H1 2013 : 3,524 boepd)
- TGAL development planning commenced; Field Development Plan (“FDP”) submission targeted for Q1 2015
- Reprocessed Galeota seismic data delivered at end Q2. Remapping of Trintes, TGAL, and Galeota exploration prospects and leads under way
Strategic highlights
- Post period end: strategic acquisition of 80% operated interest in shallow water Blocks 1a and 1b, with net undeveloped gas resources of 215 Bcf, for consideration of USD 23.0 million
Outlook
Key priorities for the Company are to:
- Progress TGAL discovery to FDP (Field Development Plan) approval
- Secure a gas sales agreement for Blocks 1a and 1b
- Fast track Block 1a and 1b to FDP
- High grade existing development well prospects to recommence drilling activities
FDP work has begun for both TGAL and Blocks 1a and 1b and discussions are ongoing with potential buyers for Blocks 1a and 1b gas. Trinity is pleased with progress to date on these initiatives and will make further announcements at the appropriate stage.
Given the drilling challenges to date at Trintes, the Company is taking every step to ensure future wells are delivered on time and on budget. Third party assurance work is underway to assess whether the rig upgrades are adequate, while well design work is being updated following successful horizontal drilling by the adjacent operator. Trinity is unlikely to recommence drilling at Trintes during 2014 until this work is completed.
Joel “Monty” Pemberton, Chief Executive Officer of Trinity, commented:
“Trinity has delivered strategic progress in the first half of 2014, despite operational setbacks on the B-9X well. Even so, our base production remains strong and the Company is positioned for growth.
Trinity’s portfolio has been enhanced with the acquisition of Blocks 1a and 1b, which adds a high quality greenfield gas development project in a developed gas market (current daily production of 4 bcf/d) that is currently short on natural gas. This acquisition diversifies our asset portfolio, future revenue stream and is a transformational acquisition for Trinity which is in line with our strategy.
Additionally, we have spent the period strengthening our operating capabilities to ensure we have the technical skills and experience to effectively manage our development projects. Craig McCallum’s appointment as Chief Operating Officer is a significant step forward in this regard.
Finally, Trinity is progressing industry sourced solutions to strengthen its balance sheet and ensure the business is adequately funded to develop and grow the existing portfolio.”