Q3 2024 Corporate Update

Trinity Exploration & Production

18 October 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.

18 October 2024

Trinity Exploration & Production plc

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

Q3 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 September 2024 ("Q3 2024" or "the Period").  The information contained herein has not been audited and may be subject to further review and amendment.

Q3 2024 Operational Highlights 

·    Q3 2024 sales volumes averaged 2,471 bopd (Q3 2023: 2,705 bopd, Q2 2024: 2,522 bopd). 

·    Sales volumes declined in the Period due to deferral of some well recompletion and workover activities from Q3 2024 to Q4 2024 on Onshore and East Coast assets.  In addition, the Onshore wells were impacted more heavily than anticipated by unplanned power outages leading to well shutdowns. Plans are being implemented to mitigate this going forward.

Average Annual and Quarterly Sales by Region

Asset	12m 2023 bopd	Q3 2023 bopd	Q2 2024 bopd	Q3 2024 bopd
Onshore	1,495	1,493	1,303	1,295
East Coast	943	843	823	793
West Coast	353	370	396	383
Total	2,790	2,705	2,522	2,471

·    During Q3 2024:

-      28 workovers were completed (Q3 2023: 37; Q2 2024: 18).

-      There was one recompletion in the Period (Q3 2023: nil; Q2 2024: four).

-      Swabbing operations continued across Onshore and West Coast assets.

Q3 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 66.9/bbl for Q3 2024 (Q3 2023: USD 72.5/bbl; Q2 2024: USD 73.2/bbl).

·    Cash balance of USD 7.2 million (unaudited) at 30 September 2024 versus USD 8.0 million (unaudited) at 30 June 2024 and USD 8.4 million (unaudited) at 30 September 2023.

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

Recommended All Cash Offer for Trinity by Lease Operators Limited ("Lease Operators")

On 2 August 2024, the boards of directors of Trinity and Lease Operators announced that they had reached agreement on the terms of a recommended cash acquisition for the entire issued, and to be issued, share capital of Trinity by Lease Operators at a price of 68.05 pence per Trinity Share (the "Acquisition"), to be effected by means of a Court-sanctioned scheme of arrangement under Part 26 of the Companies Act 2006 (the "Scheme").

On 8 October 2024, Trinity announced that a circular in relation to the Scheme (the "Scheme Document") setting out, among other things, a letter from the Chairman of Trinity, the full terms and conditions of the Scheme, an explanatory statement pursuant to section 897 of the Companies Act 2006, an expected timetable of principal events, notices of the Court Meeting and General Meeting and details of the actions to be taken by Trinity Shareholders were published on Trinity's website at https://trinityexploration.com/investors/lease-operators-offer/.

Notices convening the Court Meeting and General Meeting, both of which will be held at the offices of Cavendish Capital Markets Limited, 1 Bartholomew Close, London EC1A 7BL on 30 October 2024, are set out in the Scheme Document.  The Court Meeting will start at 10.00 a.m. and the General Meeting at 10.15 a.m. (or as soon thereafter as the Court Meeting shall have been concluded or adjourned).

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 2 August 2024, the boards of directors of Trinity and Lease Operators announced that they had reached agreement on the terms of a recommended cash acquisition for the entire issued, and to be issued, share capital of Trinity by Lease Operators at a price of 68.05 pence per Trinity Share (the "Acquisition"), to be effected by means of a Court-sanctioned 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: Trinity's website at https://trinityexploration.com/investors/lease-operators-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/lease-operators-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