Trinity spuds first of six onshore Trinidad infill wells

The AIM-traded firm said that, as previously announced, the preparation for infill drilling operations had been ongoing with Trinity's subsurface teams working up incremental locations for future drilling.

It said the work facilitated an increase on onshore 2P reserves - of 50% to 5.98 mmstb in 2017 - and the commencement of infill drilling in the first half of 2018, with the completion of two new wells, on time and on budget.

The additional six wells to the 2018 campaign brought the total to eight wells.

Trinity said that, having an inventory of new wells in the hopper, and the $20m fundraising completed in July, had enabled it to “hit the ground running” with an accelerated and fully funded drilling campaign.

The aim of the programme was to maintain double digit year-on-year production growth going forward.

It said the turnaround time of less than two months from receipt of funds to spudding the first well illustrated the preparatory work to date, and the depth of technical, commercial and logistical experience within its team.

The company also notes the decision announced yesterday by the Petroleum Company of Trinidad and Tobago to discontinue refining operations.

Trinity said it expected that the decision would have no impact to the ongoing sales agreements with Petrotrin for its oil production.

“We are delighted to have commenced these new drilling activities onshore Trinidad with the spudding of the latest well in our plan so soon after raising new equity capital and becoming debt free,” said Trinity’s executive chairman Bruce Dingwall.

“We have established a stable and well-funded profitable production platform and are ideally positioned to continue growing production, cash flow and shareholder value with this accelerated infill drilling programme.”

Dingwall said that, with peer leading break-evens and plans to increase production, the company could grow profitability in the short-term whilst working up a further step-change from future developments both onshore and offshore in the medium to long term.

“The landscape is changing rapidly in Trinidad and we look forward to updating the market with further developments.”