Trinity agrees to acquire data from Heritage Petroleum

The AIM-traded firm said the data package consisted of 37 square kilometres of 3D seismic volume, including related processing and reprocessing reports, as well as 2D seismic lines, 3D seismic line extracts and regional lines, and well log data for 16 Heritage-operated wells.

It said the seismic data covered the full extent of its onshore licence areas, including a four kilometre buffer zone around the assets.

The company understood it to be the first time that Heritage had agreed to make 3D seismic data available to an independent lease operator for onshore areas in Trinidad.

Trinity said its onshore licence areas lie within the super-giant greater Forest Reserve Field, southwest Trinidad.

The field was discovered in 1914, and had produced more than 1.2 billion barrels of oil to date, with a recovery factor of between 12.5% and 18%.

Global averages for conventional recovery factors in similar clastic reservoirs averaged between 25% and 30%, and as such, there was the potential for a “very significant uplift” in production and reserves, the board asserted.

The acquired data would enable Trinity to develop a modern structural and stratigraphic approach to analysing basin fill and deformation.

Specifically, the company said the 3D seismic data would enable it to build the basin model, stratigraphic framework and the sediment fill history in three dimensions, which was the most critical element to the process.

That was expected to result in the identification of new subsurface drilling targets which, when coupled to high angle and horizontal drilling and modern completion methods, could result in a step change in reserves and production.

When developed, the firm said the new structural and stratigraphic framework would facilitate a “potentially transformative shift” in exploitation techniques, improving the economics of drilling horizontal wells, and ultimately making them become standard practice for onshore Trinidad where applicable.

In addition, with a better understanding of facies and distribution of the reservoir zones, a much more accurate and focussed effort on enhanced oil recovery techniques would be possible, reducing reservoir risk and potentially resulting in a material increase in production and reserves.

“As a technically and commercially driven production company, we are highly focused on maximising returns from our assets,” said chairman Bruce Dingwall.

“As such, we believe that acquiring this data package will significantly enhance our ability to exploit the production potential of our onshore portfolio using the most modern methodologies.

“The 3D data, in particular, has the potential to revolutionise how we identify, target and extract reserves using high angle and horizontal drilling techniques to maximise economic recovery.”

Dingwall said that, when coupled with the company’s position on automation and the use of data science in its operations, alongside the recent proposed supplemental petroleum tax changes, the potential to provide a “step-change” in returns from the firm’s onshore licences had been enhanced.

“This is to the benefit of all stakeholders; shareholders, Heritage, the [Trinidadian] government and ultimately the citizens of Trinidad and Tobago.”

At 1139 GMT, shares in Trinity Exploration and Production were up 4.4% at 7.78p.