Q2 2014 Operations Update

RNS Number : 5520M

Trinity Exploration & Production

17 July 2014

 



Trinity Exploration & Production plc

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

Q2 2014 Operations Update

17 July 2014

Trinity, the leading independent E&P company focused on Trinidad and Tobago, today provides an update on its Q2 operations.

During the second quarter, Trinity's net production averaged 3,613 boepd.  Current production following restoration of the D-9 well at Trintes (discussed below) is 3,750 boepd.  Key second quarter operating activities included: B-9X completion in the O-sand, D-9 ESP replacement and approval for six new infill wells on the land operations.

West Coast

Net Q2 2014 production averaged 612 boepd.  Workover operations for the ABM-151 and the ABM-150 wells are scheduled during Q4 2014. Access to a jack-up workover rig is being pursued through a JV partner.

Onshore

Net Q2 2014 production averaged 2,023 bopd.  External approvals have been secured for six new infill wells with an additional six infill well locations currently going through an approval process. Drilling operations are expected to recommence during Q4.

East Coast

Net Q2 2014 production averaged 978 bopd.  Production during the quarter was impacted by the failure of the D-9 electric submersible pump ("ESP") (production of 230 bopd).  The ESP was successfully replaced in late June and production was restored at the previous level. Run-rate production at the Trintes field is currently c. 1,200 bopd. The D-7 low rate ESP installation and the recompletion of the D-1 well are planned for July.  Incremental production from these projects is expected to be 75 to 100 bopd.

The B-9X was completed in the O-sand with the production test indicating that the completion interval was producing only gas.  Technical work is being conducted to evaluate the full potential of the lower O-sand oil lobe and evaluate options for testing this interval.

To accelerate production from the B-9X well, the O-sand interval will be temporarily abandoned to allow a completion in the M-sand. The B-9X well encountered 85 feet of net oil sand in M-sand and the original water contact for the fault block. The estimated initial production ("IP") rate for the M-sand completion is 75 to 130 bopd, however, due to encountering the original water contact in the fault block, the potential exists for a higher IP rate.

TGAL Development Update

The reprocessing 3D OBC seismic data was delivered at the end of Q2. The data quality is much improved and remapping of the Trintes area and the TGAL discovery are under way.  The project team is targeting delivery of a field development plan to the Ministry Of Energy and Energy Affairs in Q1 2015.

Forward Programme

Following today's announcement that Trinity is acquiring an 80% interest in Blocks 1a and 1b, a high quality gas development project, Trinity is actively reviewing capital allocation across its portfolio, to ensure shareholder value is maximised.  Key priorities for the Company are to:

·     Progress TGAL discovery to FDP

·     Secure a gas sales agreement for Block 1a and 1b

·     Progress Block 1a and 1b to FDP

·     Pilot the new "J" type well design at the Trintes field

At the Trintes field, Trinity is currently upgrading the mud pumps on its drilling rig as previously announced.  In addition, Trinity is integrating data obtained from the operator of the adjacent license where a horizontal well has recently been drilled for the first time and was successfully brought onstream at a rate of 1,200 bopd.  This data will help with Trinity's well design and planning, to ensure that these wells are drilled on time and on budget.  Drilling will recommence once these activities have been concluded and an update will be made at the appropriate time.

The impact of all of the above is that Trinity now expects to be at the low end of its production guidance for 2014.

Joel "Monty" Pemberton, Chief Executive Officer of Trinity, commented:

"Despite technical challenges during the first half, our operational team has shown determination, and the development of the portfolio remains on track.  We look forward to the second half and the next operational phase.

The Trinidadian basin is entering a new phase, and a growing, nimble company like Trinity, established to capitalise on this change, is an exciting place to work.  As demonstrated by the acquisition of Block 1a and 1b that we announced today, Trinity's strategy is bearing fruit and our team continues to review a number of other business development opportunities."

Enquiries:

Trinity Exploration & Production Joel "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 Pip Green	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 48 mmbbl.  Trinity is listed on the AIM market of the London Stock Exchange under the ticker TRIN.LN.

 

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