26th November, 2014
Trinity, the leading independent E&P company focused on Trinidad and Tobago, today announces that it has signed a sale and purchase agreement to sell the Company’s interests in TEPCL (the Tabaquite block) to LGO Energy PLC (“LGO”) for US$2.0 million.
The US$2.0 million consideration comprises a US$1.0 million cash payment on the execution of the Sale and Purchase Agreement and the remaining US$1.0 million payable on completion of certain commercial conditions and standard regulatory approvals, including final approval from the Petroleum Company of Trinidad and Tobago Limited (Petrotrin) and the Ministry of Energy and Energy Affairs (MOEEA).
The Tabaquite block covers an area of approximately 11.7 square miles (7,502 acres), with production averaging approximately 25 barrels of oil per day (bopd) year to date. The book value of the Tabaquite asset as at 31 December 2013 was US$534,324.
Joel “Monty” Pemberton, Chief Executive Officer of Trinity, commented:
“The successful sale of Tabaquite illustrates the latent value throughout our asset base, and the flexibility this offers Trinity to develop its portfolio through industry-based funding at a time when we are seeing growing interest in the region. Tabaquite was a non-core asset and its sale allows better focus of the Group’s resources at a time of considerable activity. We are pleased to have transacted with LGO which is an ideal partner to acquire this acreage being an experienced in-country operator.”