Last update: 07-Dec-2013 3:12 am
Saturday, December 07, 2013
Trinidad & Tobago Guardian Online
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Trinity posts US$15.8m in earnings
Coming full circle from a US$13 million loss last year, Trinity Exploration and Production PLC posted an earnings before income tax, depreciation and amortization (EBITDA) of US$15.8 million, and cash flow from operating activities of US$11.2 million yesterday on the London Stock Exchange. In a regulatory notice, Trinity highlighted that its financials show revenues of US$54.5 million for the half year ended June 30; EBITDA of US$15.8 million and cash flow from operating activities of US$11.2 million; pre-exceptional items after tax profit of US$1.8 million (post exceptional items after tax profit of US$54.1 million); cash balances of US$57.4 million at June 30, 2013. Trinity also noted that it secured an additional US$25 million undrawn debt facility with Citibank to fund future growth and that “Government of T&T recently announced additional capital allowance incentives in the 2014 annual budget which enhances project economics and increases Trinity's core net asset value.”
The company also gave operating highlights at the release of its half-year results. Current production is at 3,830 barrels of oil equivalent per day (boepd), an increase of 12 per cent since the current management team took full operational control of what was then Bayfield, on February 14. Trinity said it brought six onshore development wells into production in the first half with an average initial production rate of 150 barrels of oil per day (bopd), ahead of budget of 50 bopd per well. The company said it had more than 425,000 man hours in the first half without any lost time incidents (LTI) and more than 2,000 hours of training given to staff and contractors under the current management team. Two major infrastructure projects were completed—the Brighton field automatic metering and oil transfer system (or Lease Automatic Custody Transfer unit) and the MP-8 platform refurbishment—and two jack-up rigs have been secured to drill the two 2013 exploration wells with zero cost options for additional rig slots if required, the company said.
Trinity intends to continue with the onshore development drilling campaign and drill a minimum of five new wells by the end of this year and may expand on this programme. On the west coast, Trinity will be completing the remainder of its heavy workovers on the MP-8 project (three additional wells). On the east coast, Trinity has experienced operational challenges at the Trintes field due to issues with power generation to the platforms and delays to its drilling programme. The company is seeking to broaden its existing portfolio through the upcoming licensing rounds and selective acquisition opportunities. In addition to these initiatives, Trinity is working to further improve the commercial terms on its core licences. Joel “Monty” Pemberton, chief executive officer of Trinity, said: “In the first four and a half months of trading, Trinity has been able to grow production and reserves despite the operational challenges on the Trintes field. Our team has grown production through the drill bit by 35 per cent on the onshore and West coast assets, generated operating cash of US$11.2 million for the half year and increased 2P (proven plus probable) reserves by 4.4 million barrels (mmbbl) booked as a reserve upgrade at December 31, 2012.”
Pemberton said it was delivered safely with zero LTIs. Trinity also secured an additional US$25 million debt facility in August which remains undrawn and provides additional financial flexibility to grow the business. Trinity is delivering on its strategy of increasing production, adding reserves and maintaining profitability. The two exploration wells, which will be drilled in the fourth quarter, have the potential to more than double the size of the business. “The Trintes field has presented infrastructure challenges since we took control, and production is down 34 per cent from the acquisition date. None of these issues relate to the reservoir, and a robust plan is in place to rectify the operational challenges to deliver on the production forecast. Drilling operations are expected to recommence in November 2013,” he said. “Trinity remains a fundamentally strong business, continues to grow reserves and production, generating operating cash with material exploration upside. Trinity ended June 2013 with US$57 million of cash and is fully funded for its work programme. The landscape in Trinidad continues to evolve and Trinity, as the leading independent, is poised to take full advantage of upcoming opportunities.”
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