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Saturday, July 26, 2025

Lease Operators agrees to buy Trinity Exploration

by

Geisha Kowlessar-Alonzo
357 days ago
20240803
Trinity Exploration and Production, CEO, Jeremy Bridglalsingh, right, signs the exploration and production license for the Buenos Ayres block. Also signing are from left, Ministry of Energy permanent secretary, Penelope Bradshaw-Niles, Minister of Energy Stuart Young, and Heritage deputy chairman, Reynold Ajodhasingh. The signing ceremony was held at the Ministry of Energy at the International Waterfront Centre, Port-of-Spain in June.

Trinity Exploration and Production, CEO, Jeremy Bridglalsingh, right, signs the exploration and production license for the Buenos Ayres block. Also signing are from left, Ministry of Energy permanent secretary, Penelope Bradshaw-Niles, Minister of Energy Stuart Young, and Heritage deputy chairman, Reynold Ajodhasingh. The signing ceremony was held at the Ministry of Energy at the International Waterfront Centre, Port-of-Spain in June.

Lo­cal pri­vate­ly held oil com­pa­ny, Lease Op­er­a­tors, has reached an agree­ment on the terms of a rec­om­mend­ed cash ac­qui­si­tion for 100 per cent of Trin­i­ty Ex­plo­ration & Pro­duc­tion, a com­pa­ny list­ed on the AIM mar­ket of the Lon­don Stock Ex­change (LSE) in Lon­don, which op­er­ates in T&T.

In a news re­lease on its web­site yes­ter­day, Trin­i­ty Ex­plo­ration said that its share­hold­ers would be en­ti­tled to re­ceive £0.6805 per share for a to­tal con­sid­er­a­tion of ap­prox­i­mate­ly £26.4 mil­lion (US$33.79 mil­lion at yes­ter­day's GBP-USD ex­change rate).

That con­sid­er­a­tion rep­re­sents a pre­mi­um of ap­prox­i­mate­ly:

* 19.4 per cent to the clos­ing price of £0.57 per Trin­i­ty share on Au­gust 1;

* 41.8 per cent to the clos­ing price of £0.48 per Trin­i­ty share on Ju­ly 24, 2024, which was the date on which the in­dica­tive of­fer of Lease Op­er­a­tors was an­nounced;

* 89.0 per cent to the clos­ing price of £0.36. per Trin­i­ty share on April 30, 2024. That was the day be­fore the an­nounce­ment of the first bid for Trin­i­ty Ex­plo­ration, which was made by Touch­stone Ex­plo­ration.

Touch­stone Ex­plo­ration, which is list­ed on Toron­to Stock Ex­change and the AIM mar­ket of the LSE, made an all-stock of­fer to ac­quire Trin­i­ty ear­li­er this year.

In the news re­lease yes­ter­day, Trin­i­ty Ex­plo­ration said: "On May 1, 2024, the date on which the Touch­stone of­fer of 1.5 new Touch­stone shares in ex­change for each

Trin­i­ty share was an­nounced, the Trin­i­ty di­rec­tors con­sid­ered, at the time, that it was in the best in­ter­ests of Trin­i­ty share­hold­ers to rec­om­mend the Touch­stone of­fer.

"At the time of its an­nounce­ment, the Touch­stone of­fer rep­re­sent­ed an im­plied val­ue of £0.619 per Trin­i­ty share, a sig­nif­i­cant pre­mi­um to the then pre­vail­ing

price of a Trin­i­ty share.

"On Ju­ly 17, 2024, the Trin­i­ty di­rec­tors con­sid­er that the Ac­qui­si­tion pro­vides Trin­i­ty share­hold­ers with an op­por­tu­ni­ty to re­alise a cer­tain val­u­a­tion in cash at a sig­nif­i­cant pre­mi­um to the un­af­fect­ed pre­vail­ing price, which re­flects the cur­rent strength and fu­ture po­ten­tial of Trin­i­ty. The Trin­i­ty di­rec­tors al­so con­sid­er that the Ac­qui­si­tion is a ma­te­r­i­al im­prove­ment for Trin­i­ty share­hold­ers over the Touch­stone of­fer and ac­cel­er­ates, with­out fur­ther cap­i­tal in­vest­ment, time or op­er­a­tional risk, the de­liv­ery of fair val­ue to Trin­i­ty share­hold­ers."

Trin­i­ty said its di­rec­tors have with­drawn their rec­om­men­da­tion of the Touch­stone Of­fer with im­me­di­ate ef­fect. The Trin­i­ty di­rec­tors in­tend to unan­i­mous­ly rec­om­mend that el­i­gi­ble share­hold­ers of the com­pa­ny vote in favour of the scheme at the court meet­ing and in favour of the res­o­lu­tion to be pro­posed at the gen­er­al meet­ing.

Lease Op­er­a­tors is a mem­ber of the Well Ser­vices Group, which be­gan op­er­a­tions in 1967 as a sin­gle com­pa­ny called Well Ser­vices Lim­it­ed. It was found­ed in Trinidad and To­ba­go by Charles An­tho­ny Brash Sr., who is still ac­tive in the Well Ser­vices Group and is cur­rent­ly the chair­man of Lease Op­er­a­tors.

Mean­while, in an op­er­a­tional up­date, Touch­stone Ex­plo­ration an­nounced that its Cas­cadu­ra nat­ur­al gas fa­cil­i­ty ex­pan­sion and the con­struc­tion of the flow­line from the Cas­cadu­ra C sur­face lo­ca­tion to the fa­cil­i­ty are pro­gress­ing as sched­uled.

Touch­stone said the com­pa­ny con­tin­ues to tar­get ini­tial pro­duc­tion from its Cas­cadu­ra-2ST1 and Cas­cadu­ra-3ST1 wells be­fore the end of Sep­tem­ber 2024.

"As part of our on­go­ing pro­duc­tion op­ti­mi­sa­tion ef­forts at Cas­cadu­ra, we per­formed a re­com­ple­tion on the Cas­cadu­ra Deep-1 well by adding per­fo­ra­tions above the pre­vi­ous­ly com­plet­ed pay in­ter­vals. The well was shut in on June 24, 2024 and re­sumed pro­duc­tion on Ju­ly 4, 2024. Pri­or to the re­com­ple­tion, the Cas­cadu­ra wells pro­duced an ag­gre­gate net field es­ti­mat­ed rate of 3,463 boe/d (bar­rels of oil equiv­a­lent per day), and cur­rent com­bined net field es­ti­mat­ed pro­duc­tion is ap­prox­i­mate­ly 4,082 boe/d," the com­pa­ny ex­plained in a state­ment on its web­site.


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