Trinity gets approval for Galeota development plan

The AIM-traded firm said the “comprehensive and relatively quick” approval by the ministry, against the background of the Covid-19 pandemic, was “extremely helpful”, providing a “suitably matured” development concept which could be reviewed by potential funding partners as part of the farm-down process.

It said the FDP was focused on the phase 1 development of the Galeota licence, which had the potential to add additional peak production of around 4,000 barrels of oil per day on the submitted development concept.

More recent dynamic modelling indicated that intra-year peak production could be “significantly higher”, at up to 7,000 barrels per day.

The company said the development concept comprised the installation of a low-cost eight-well conductor supported platform ‘Echo’, a new pipeline from Echo to shore with the existing Trintes platforms tied in, and ‘T’ sections installed for the potential development of the TGAL NE and Trintes SW areas in the future.

It said the contingent resources estimated to be developed as part of the Echo development concept were facilities-constrained due to large volumes of oil initially in place, so in parallel with progressing the farmdown, Trinity was working on both a 10- and 12-well slot platform development.

The company said it expected Echo to be powered from shore, with tiebacks to the existing Trintes platforms.

As there was no offshore power generation planned, and thus no diesel and no generators, and given that the platforms would be unmanned, the development would have a “nominal” carbon footprint when compared to standard offshore developments.

Trinity also noted that a large proportion of its total tax loss position of $165m out of $237m at the end of 2020 could be applied to the Galeota field development, further underpinning its economics.

The company said its focus in relation to the Galeota asset development for the rest of the fourth quarter would be to work with its adviser to launch a formal marketing process for a farmdown, encompassing the current Trintes Field production, the Echo Field development and the Foxtrot and Golf appraisal areas.

It said that the process was expected to start in December, with a duration of around six to nine months.

“We would like to thank the MEEI for their comprehensive and speedy response to our field development plan submission,” said chief executive officer Jeremy Bridglalsingh.

“Their approval is a critical milestone as we move towards a final investment decision.”

Bridglalsingh said the next milestone was to commence the farm-down process in early December.

“The competent person's report will be finalised in advance of this process, and will form a key assurance document within our data room.”

At 1147 GMT, shares in Trinity Exploration & Production were up 3.62% at 130.56p.