Q2 2024 Corporate Update

Trinity Exploration & Production

19 July 2024

 

This announcement contains inside information as stipulated under the UK version of the Market Abuse Regulation No 596/2014 which is part of English Law by virtue of the European (Withdrawal) Act 2018, as amended.  On publication of this announcement via a Regulatory Information Service, this information is considered to be in the public domain.

19 July 2024

Trinity Exploration & Production plc

("Trinity" or "the Group" or "the Company")

Q2 2024 Corporate Update

Trinity Exploration & Production plc (AIM: TRIN), the independent E&P company focused on Trinidad and Tobago, provides an update on operations for the three-month period ended 30 June 2024 ("Q2 2024" or "the Period").  The information contained herein has not been audited and may be subject to further review and amendment.

Q2 2024 Operational Highlights 

·    Q2 2024 sales volumes averaged 2,522 bopd (Q2 2023: 2,824 bopd, Q1 2024: 2,668 bopd). 

-      Sales volume declined in the Period due to deferral of some well recompletion and workover activities from Q2 2024 to Q3 2024 on Onshore and East Coast assets.

-      The Jacobin well was re-perforated in the Lower Forest horizon in May 2024 and is producing dry oil at a steady rate of 30 bopd.

·    The Company maintains its Full-Year 2024 sales volume guidance of 2,600-2,700 bopd.

Average Annual and Quarterly Sales by Region

Asset	12m 2023 bopd		Q2 2023 bopd		Q1 2024 bopd	Q2 2024 bopd
Onshore	1,495		1,477		1,383	1,303
East Coast	943		985		912	823
West Coast	353		362		373	396
Total	2,790		2,824		2,668	2,522

·    During Q2 2024:

-      18 workovers were completed (Q2 2023: 16; Q1 2024: 33).

-      There were four recompletions in the Period (Q2 2023: one; Q4 2023: three).

-      Swabbing operations continued across Onshore and West Coast assets.

Q2 2024 Financial Highlights

The Group reports its consolidated financial information annually and half yearly, in its Annual Report & Accounts and Interim Results, in accordance with UK adopted International Accounting Standards and the London Stock Exchange's AIM Rules for Companies.  Quarterly, the Group provides unaudited information for guidance.

·    Average realised oil price of USD 73.2/bbl for Q2 2024 (Q2 2023: USD 63.7/bbl; Q1 2024: USD 69.9/bbl).

·    Cash balance of USD 8.0 million (unaudited) at 30 June 2024 versus USD 8.6 million (unaudited) at 31 March 2024 and USD 11.3 million (unaudited) at 30 June 2023.

·    The Group had drawn borrowings (overdraft) of USD 3.0 million at 30 June 2024 (USD 4.0 million at 31 March 2024 and USD 2.0 million at 30 June 2023).

Recommended All Share Offer for Trinity by Touchstone Exploration Inc (TSX, LSE: TXP) ("Touchstone")

On 1 May 2024, the board of directors of each of Trinity and Touchstone announced that they had reached agreement on the terms of a recommended all share offer pursuant to which Touchstone will acquire the entire issued and to be issued ordinary share capital of Trinity (the "Acquisition").  The Acquisition is to be effected by means of a scheme of arrangement under Part 26 of the Companies Act 2006 (the "Scheme").

On 24 June 2024, Trinity announced that at the Court Meeting and General Meeting the requisite majorities of Scheme Shareholders voted in favour of the Scheme at the Court Meeting; and the requisite majority of Trinity Shareholders voted in favour of the Resolution at the General Meeting to give effect to the Scheme by, among other things, amending the articles of association of Trinity.

On 28 June 2024, Trinity and Touchstone announced that all Regulatory and Antitrust Conditions, as set out in Part A of Part Three of the Scheme Document, had been satisfied.

The Acquisition remains subject to the satisfaction or waiver (where capable of being waived) of the remaining Conditions to the Acquisition as set out in Part Three of the Scheme Document, including the Court's sanction of the Scheme at the Court Hearing and the delivery of a copy of the Court Order to the Registrar of Companies.

The Court Hearing is currently scheduled for 31 July 2024, and Trinity will inform Shareholders of any changes to the date and time, by issuing an announcement through a Regulatory Information Service.  The Scheme is expected to become Effective on 1 August 2024.

- Ends -

Enquiries:

Trinity Exploration & Production plc Jeremy Bridglalsingh, Chief Executive Officer Julian Kennedy, Chief Financial Officer Nick Clayton, Non-Executive Chairman	Via Vigo Consulting
SPARK Advisory Partners Limited (Nominated Adviser and Financial Adviser) Mark Brady James Keeshan	[phone]
Cavendish Capital Markets Limited (Broker) Leif Powis Derrick Lee Neil McDonald	[phone] [phone]
Vigo Consulting Limited Finlay Thomson Patrick d'Ancona	[e-mail] [phone]

About Trinity (www.trinityexploration.com)

Trinity is an independent oil production company focused solely on Trinidad and Tobago.  Trinity operates producing and development assets both onshore and offshore, in the shallow water West and East Coasts of Trinidad.  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, across all of the Group's assets, management's estimate of the Group's 2P reserves as at the end of 2023 was 12.91 mmstb.  Group 2C contingent resources are estimated to be 38.68 mmstb.  The Group's overall 2P plus 2C volumes are therefore 51.58 mmstb. 

On 1 May 2024, the board of directors of each of Trinity and Touchstone Exploration Inc (TSX, LSE: TXP) ("Touchstone") announced that they had reached agreement on the terms of a recommended all share offer pursuant to which Touchstone will acquire the entire issued and to be issued ordinary share capital of Trinity (the "Acquisition").  The Acquisition is to be effected by means of a scheme of arrangement under Part 26 of the Companies Act 2006 (the "Scheme").  Further information on the Acquisition can be found on Trinity's website at: https://trinityexploration.com/investors/touchstone-offer/. 

Trinity is quoted on AIM, a market operated and regulated by the London Stock Exchange Plc, under the ticker TRIN. 

Qualified Person's Statement

The technical information contained in the announcement has been reviewed and approved by Mark Kingsley, Trinity's Chief Operating Officer.  Mark Kingsley (BSc (Hons) Chemical Engineering, Birmingham University) has over 35 years of experience in international oil and gas exploration, development and production and is a Chartered Engineer. 

Disclaimer

This document contains certain forward-looking statements that are subject to the usual risk factors and uncertainties associated with the oil exploration and production business.  Whilst the Group believes the expectation reflected herein to be reasonable in light of the information available to it at this time, the actual outcome may be materially different owing to macroeconomic factors either beyond the Group's control or otherwise within the Group's control.

Publication on Website

In accordance with Rule 26.1 of the Takeover Code a copy of this announcement will be available free of charge, subject to certain restrictions relating to persons resident in restricted jurisdictions, on the investor relations section of Trinity's website at https://trinityexploration.com/investors/touchstone-offer/ by no later than 12.00 noon (London time) on the business day immediately following this announcement. The content of the website referred to in this announcement is not incorporated into and does not form part of this announcement.

 

END