After a three-week trial which gripped the attention of the media and attracted widespread attention among the Turks and Caicos islands population, Cortez Simmons, the son and employee of Carl Simm
You are here
Trinity production up 23 per cent
Trinity Exploration and Production plc reported to the London Stock Exchange (LSE) production growth of 23 per cent, and reserve growth of over 56 since it went public just over a year ago. Through a reverse takeover of Bayfield Energy, Trinity listed on the LSE on St Valentine’s Day 2013.
Though the company’s TGAL-1 discovery “added considerably to Trinity’s resource base and demonstrates the potential of Trinity’s Galeota license, reserves from that find were not included in the count, and would therefore lift the number to over 56 per cent. Trinity management’s preliminary estimates indicate gross original oil in place of 50-115 million barrels (mmbbl) of oil.
“In 2013, Trinity delivered production growth through a successful infill drilling campaign both onshore and offshore,” Trinity chief executive officer Joel Monty Pemberton said. “As a result of this programme and the success of TGAL-1, the company’s resource base has grown considerably. This ambitious programme was delivered safely and effectively.”
Trinity’s strategy is “to maintain our growth trajectory through completion of the field development plan (FDP) for the TGAL area, continued infill drilling at our onshore and offshore Trintes assets and high grading our exploration portfolio through further technical and commercial work,” Pemberton said.
He said Trinity continues “to view the mature Trinidadian basin as offering considerable potential for asset realignment between companies, and we are actively pursuing several commercial and business development opportunities that are consistent with our strategy.”
The CEO added: “Trinity generates positive operating cash flow from its existing production base and remains in a financially stable position. Effective capital allocation, to deliver the greatest value to the company and its shareholders, continues to be the central objective for the board and management team.”
Trinity told the LSE in its update: “Key local industry stakeholders understand the valuable role independent exploration and production (E&P) companies can play in maximising the potential of T&T’s resources and the landscape continues to rapidly evolve to encourage further investment. Trinity continues to play an important leadership role in assisting in making the case for the evolving independent E&P sector in T&T.”
During the fourth quarter (Q4) of 2013, Trinity’s net production averaged 4,210 barrels of oil equivalent per day (boepd), up from the 3,830 boepd it reported on September 19. On the west coast of Trinidad, Trinity’s net Q4 2013 production averaged 618 boepd. Onshore net Q4 2013 production averaged 2,163 bopd. On the east coast net Q4 2013 production averaged 1,428 bopd.
Trinity ended 2013 with cash of US$25 million, debt of US$16 million and undrawn debt facilities from Citibank of US$25 million. “Trinity continues to benefit from positive operating cash flow from its existing production base and is in a stable financial position,” the company said.
Giving its 2014 outlook, the company said its key focus is to progress the TGAL-1 discovery to an approved FDP so as to achieve first oil as fast as possible, and to “high grade” the exploration prospects on the Galeota, and Point Ligoure Guapo Brighton (PGB) licences. Specifically, Trinity said its 2014 plans are, on the west coast of Trinidad, to conduct a coiled tubing clean out, additional perforations and diagnostic work to enhance production.
Onshore Trinidad, Trinity has temporarily suspended its onshore drilling campaign. “This has been done to ensure the approvals to drill are secured and associated operating synergies and cost savings of a multi-well programme can be realised. Once this has been completed, drilling will recommence. In aggregate, the planned programme is expected to deliver moderate production growth throughout the year,” the company said.
On the east coast of Trinidad, Trinity has commenced drilling at B9 on the Trintes field. The company said it has four more targets identified. Trinity said it also sees “deeper reservoir potential in the O, OO and P sands which, on success, could open up a number of additional follow-on drilling opportunities”.
The company, which is managed locally out of a Sutton Street, San Fernando office, also said its drilling team has designed a new high angle well with a “J” type profile. “J” wells are designed to intersect the reservoir in the horizontal plane and thus expose much more reservoir to the well bore, deliver higher initial production (IP) rates and allow the conventional deployment of electrical submersible pumps.
“Such wells could have a significant impact at Trintes and the overall TGAL development strategy. J profile wells have been drilled with great success in Brunei,” Trinity said.
Trinity will advance engineering studies relating to the development of Trinity’s TGAL-1 discovery. Critical to that FDP is re-processing the existing 3D seismic database over the entire Galeota license (including TGAL) with interpretation expected to be concluded in the third quarter (Q3) 2014. The results of this work will be integrated into Trinity’s subsurface modelling in order to high grade Trinity’s exploration and development drilling inventory across the entire block.
Trinity’s total capital budget for 2014 is forecast to be US$21 million, of which around US$6 million is related to infrastructure and non-production spending (for example, sub-surface capital expenditure), US$7 million is for exploration costs relating to the El Dorado well (incurred in January 2014) and the remainder is for production drilling.