Trinity Exploration lays 'strong foundations' for growth in Trinidad and Tobago

Trinidad and Tobago-focussed exploration and production company Trinity Exploration told shareholders on Thursday that in the last year, it had successfully taken steps to ensure that “strong foundations” were in place for continued growth, as well as setting a path for “game-changing” long term development.

The AIM-traded firm said at its annual general meeting that last year, it became debt-free and recommenced its onshore drilling campaign, with eight development wells successfully completed and put on production.

Additionally, it explained that the wider opportunity set had expanded with the restructuring of the National Oil Company, Petrotrin - now Heritage - providing additional growth opportunities for the company in the region.

To that end, it said it was working closely with Heritage, negotiating new licencing models while also focusing on several potential joint venture opportunities.

“Following the 2017 restructuring, our first priority was to ensure operational stability and so our initial focus was on low cost re-completions and workovers,” chairman Bruce Dingwall told investors at the meeting.

“During 2018 we raised capital allowing us to become debt free and to fully fund onshore drilling activities - and have already seen the initial benefits as we exited 2018 with production in excess of 3,000 barrels of oil per day and a cash plus working capital surplus of approximately $18 million.

“Last year's strong operating performance resulted in increased production and growing revenues, reserves, EBITDA and margins underpinned by tight cost controls.”

Importantly, Dingwall said the company expected to maintain that momentum in the coming years.

In the near-term, he said the board would update shareholders as it began its 2019 onshore drilling campaign of up to eight new wells early in the second half of the year.

“Crucially, this will include our first high-angled well which could potentially lead to a significant increase in initial production rates and returns in the short to medium term.

“We are also continuing to work up the significant medium term offshore opportunity at TGAL while also exploring a number of innovative work plans that would further differentiate our model by utilising new technologies.

“Having proven and funded our near-term growth cycle, given our strong capital position, asset and reserves base we believe we are extremely well placed to respond to the additional opportunities opening up in Trinidad and to generate attractive returns for shareholders.”

He noted that as a board and management team they held 23% of the equity, and remained “highly focussed” on delivering for all shareholders over the short, medium and longer term.

“On behalf of the board, I must thank all our staff and suppliers in Trinidad and Tobago for their diligence, commitment and support which has allowed Trinity to focus on growth whilst maintaining a safe working environment.

“The board would additionally like to take this opportunity to thank existing shareholders and other stakeholders, notably Petrotrin, Heritage, BIR, and the MEEI, for their support and to welcome new shareholders as we move forward with a strong balance sheet and well placed to add value from the opportunities arising in the changing environment in Trinidad and Tobago.”