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Petrotrin exits Trintes field
The Petroleum Company of Trinidad and Tobago’s (Petrotrin) 35 per cent interest in the Trintes field (Galeota) was converted to an over-riding royalty (ORR), Trinity Exploration and Production plc said in a statement yesterday. The change means that Trinity will be “increasing (its) working interest in the field to 100 per cent”. “The Galeota License is one of Trinity’s key assets. The recent announcement of the TGAL-1 exploration discovery provides additional confidence in the underlying resource potential of the block.”
The statement continued: “Effective October 1, 2013, Trinity’s joint venture partner Petrotrin has agreed to convert its 35 per cent working interest in the Trintes field to an ORR. No other financial consideration is payable beyond the ORR. The net effect of the conversion is to increase Trinity’s working interest in the field to 100 per cent and adds an additional 13 million barrels (mmbls) in proven plus probable (2P) reserves and around 470 barrels of oil per day (bopd) of production.
“This ORR agreement only covers the Trintes field (which excludes the recent TGAL-1 discovery) and Petrotrin retains a 35 per cent working interest in the remainder of the Galeota License.”
Trinity’s CEO Monty Pemberton said: “Trinity strongly believes in the potential of the Galeota Licence, which has all the necessary components to build a significant production hub; that is infrastructure, existing production and a significant development, appraisal and exploration inventory. These new arrangements increase Trinity’s financial and operating flexibility thus enabling further investment in this block to grow reserves and production for our shareholders.
“Trinity’s joint venture partner, Petrotrin, continues to work positively with the company to achieve a common objective of increasing oil production for the mutual benefit of all stakeholders and we wish to thank them for their continued support in finalising these agreements. 2014 is set to be an exciting year at Galeota.
“We are pleased to be re-commencing drilling operations at the Trintes field as delivering production growth is a core focus of Trinity. As previously announced, we have also commenced engineering studies to rapidly move our TGAL-1 discovery to a development project and will provide an update to shareholders when this work is complete.” Trinity also announced that it had signed a new crude oil sales agreement with Petrotrin for the sale of its share of production from the Trintes field.
“This agreement harmonises pricing of the Trintes crude with Trinity’s other sales agreements under which oil pricing is linked to the West Texas Intermediate. “The new arrangement is effective August 1, 2013, and has a two year term with a further option for renewal. All other key terms remain unchanged,” the company said.
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