Operations Update

RNS Number : 7643B

Trinity Exploration & Production

08 April 2013

 

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION

Trinity Exploration & Production plc

(the "Company" or "Trinity"; AIM:TRIN)

Operations Update

8 April 2013

Trinity, the leading independent E&P company focused on Trinidad and Tobago, is pleased to provide an update on its operations.

Highlights

·     Current net production of 3,911 bopd (4,579 bopd gross)

·     Four onshore wells drilled and completed with average initial production rates of 150 bopd per well (versus budget of 50 bopd)

·     Deployment of Trinity's operational management team at Galeota and implementation of new procedures complete; shut-in wells at Trintes coming back online at expected rates

·     Rig Sharing Agreement executed with three other operators for the Rowan Gorilla III jack-up rig.  Trinity is taking the first rig slot and will drill its first exploration well on the Galeota licence in Q3 2013

West Coast Assets

As part of the ongoing work programme for 2013, upgrade work has begun on Marine Platform - 8 (MP-8) within the Brighton Marine field ahead of a heavy workover programme planned for summer 2013. Additionally Trinity has recently deployed a capillary tubing unit on the asset to optimise gas lift on selected wells.  Sub-surface, engineering and planning work continues to mature development, appraisal and exploration well locations across the area.

Total net production from Trinity's West coast assets is currently 469 bopd (521 bopd gross).

Onshore Assets

Trinity has drilled four of the twelve wells planned for 2013.  The performance of these wells has exceeded expectations with initial production rates averaging 150 bopd per well (budget 50 bopd).  A fifth well reached TD of 5,300ft on 6 April 2013, the well encountered better than expected pay in the primary and secondary targets plus additional pay of 95 feet below the primary target.  This fifth well will be brought onstream in due course.

Due to this encouraging start to the onshore campaign, management is considering expanding the current programme.  The onshore asset team continues to build drilling inventory across all licences.

Total net production from Trinity's onshore assets is currently 2,298 bopd (2,298 bopd gross).

East Coast Asset

Trinity took operational control of the Galeota licence and the producing Trintes field on 14 February 2013.  Since taking control Trinity has appointed a new asset manager and supplemented the operating team.  The new team has spent considerable time changing the operating culture and practices on the asset.  New operating policies and procedures are now in place to ensure that all operations are conducted safely and efficiently.

As the outgoing Bayfield management team reported in February, Trintes field production was materially affected by the failure of the main power generator on the Alpha platform.  Since then temporary generators (including back up) have been commissioned along with new procedural controls to reduce the risk of events of this nature occurring again.  As part of the remediation of the shut-in wells, the Company accelerated the procurement of new Schlumberger electric submersible pumps ("ESP") and other pumps which are now being deployed.  To date four wells have been brought back into production and a further six wells, with an estimated production potential of 165 bopd, will be back onstream during the first half of the year.  The remaining four shut-in wells have production potential of 125 bopd and will be brought back onstream during October 2013, however this may be earlier if there is an opportunity to schedule the wells between the infill programme.

Operations on the first sidetrack well of 2013, the B5-X well were suspended in late February as the Company was not satisfied with the wellhead integrity.  The wellhead is currently being refurbished prior to the rig re-entering the well and drilling to TD.  The rig has been utilised to workover various wells and is currently on the B11 infill well where operations are underway.  

Total net production from the Trintes field is currently 1,144 bopd (1,760 bopd gross).

Other

Trinity has recently executed a rig-sharing agreement with three other operators for the Rowan Gorilla III jack-up rig which is currently operating in Trinidadian waters.  Trinity has agreed to take one rig slot in Q3 2013 when the Company will drill its first exploration well on the Galeota licence.  The rig contract with Rowan is currently being negotiated and a contract is expected to be executed during Q2 2013. 

Trinity continues to look for ways to bring value to its portfolio through innovative technical and commercial solutions.  Feasibility studies are ongoing to explore the possibility of using a smaller mat-supported jack-up rig for exploration drilling on both the East and West Coasts.  Such a solution, if feasible, could lead to a significant reduction in drilling costs.

Monty Pemberton, Chief Executive Officer of Trinity, commented:

"Trinity remains on target to achieve its 2013 exit production forecast of 5,000 bopd and importantly, deliver the broader work plan outlined in our Admission Document published in February 2013.

Trinity has a diversified asset base which has delivered an increase in net production of 5% from 3,741 bopd to 3,911 bopd since the middle of February when we closed the acquisition of Bayfield.  Furthermore, our infill drilling operations on the Trintes field have recommenced and we are considering expanding the onshore drilling programme for 2013 following encouraging results from the first four wells.

With respect to the East Coast Asset, it is extremely important that we take the time to institute the appropriate operating culture, ensuring that the correct procedures are implemented at the Trintes field so that we deliver our work programme safely and efficiently to maximise the long-term value of this asset.

In addition, we are well advanced in securing rig access to commence our exploration programme in Q3 2013 which provides our investors with exposure to significant potential upside."

Enquiries

Trinity Exploration & Production Monty Pemberton, Chief Executive Officer Robert Gair, Corporate Development Manager	Tel: [phone]
RBC Capital Markets (NOMAD & Joint Broker) Tim Chapman Matthew Coakes Daniel Conti	Tel: [phone]
Jefferies (Joint Broker) Chris Zeal Graham Hertrich	Tel: [phone]
Brunswick Group LLP (PR Adviser) Patrick Handley Catriona McDermott	Tel: [phone]

About Trinity

Trinity is the largest independent E&P company focused on Trinidad and Tobago.  Trinity operates assets onshore and offshore on both the West and East coasts. Trinity's portfolio includes current production, significant near-term production growth opportunities from low risk developments and multiple exploration prospects with the potential to deliver meaningful reserves/resources growth.  The Company operates all of its licences and has 2P reserves of 31 mmbbl and current production of c. 4,000 bopd.  Trinity is listed on the AIM market of the London Stock Exchange under the ticker TRIN.LN.

 

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