Trinity, an independent E&P company focused on Trinidad and Tobago, today announces the results of a review of its organisational structure and operations.
As part of the ongoing strategic review process, and in light of the company’s current funding position and the low oil price environment, the Company has identified a number of cost reduction measures which include management changes and a redundancy programme across functions. As part of this process, Craig McCallum, Chief Operating Officer, is to leave the business with effect from 31st March 2016.
These measures, in conjunction with other cost reductions achieved to date, are expected to reduce general and administrative (“G&A”) costs on a run rate basis by more than US$1.6 million per annum. This is expected to save more than US$0.3 million in the current financial year, although this will be offset by directly related cash costs of approximately US$0.2 million. G&A costs have already been reduced to US$5.7 million for H1 2015 versus US$10.4 million for H1 2014.
Trinity has also made significant progress in the reduction of field operating costs, including working closely with partners, suppliers and other operators to achieve significant logistical synergies. The Company expects to continue with these efforts, bringing operating expenditure to levels significantly lower than those of 2014. The Company remains on target to reduce operating costs to US$26.0 million for the full financial year 2015 (versus US$33.0 million for 2014).
Trinity retains a team with significant operational experience and deep knowledge of the Company’s assets. With a focus on maintaining production levels, no reductions have been made amongst field-based staff.
Joel “Monty” Pemberton, Chief Executive Officer of Trinity, commented:
“While we cannot control the price of oil, we are working hard to manage production levels on a constrained capital budget while reducing those costs that we can control.
The measures we have taken to reducing staffing across the business reflect the level of investment activity justified by the current oil price. Crucially, we are retaining a strong, experienced core of operational staff to ensure that our assets continue to be run to the highest standards, without compromising their potential should the commercial environment improve in the future.
I would like to express my thanks to Craig McCallum and all of Trinity’s employees for their commitment and endeavours during this difficult time.”