Page 15 - LatAmOil Week 04 2021

LatAmOil NEWS IN BRIEF LatAmOil

Q4-2020 Operational Highlights: Robust and associated opportunities in existing Trinity In summary, the Honourable Justice Petra
COVID-19 measures continue with no sig- assets; and Pursuit of other mutually beneficial Hanna-Adderley has exercised her discretion
nificant impact to operations and production; business opportunities. to add BPC as a respondent to the application.
Quarter-on-quarter Group average produc- The Trinidad & Tobago Government imple- Consequent on this, BPC is entitled to request
tion volumes were increased to 3,206 bpd for mented the proposed reforms of SPT for small that the applicants provide security for costs, for
Q4-2020 (Q3-2020: 3,135 bpd); 7% year on year onshore producers. These reforms are now effec- which purpose a hearing has been scheduled for
increase in Group average production volumes tive with the threshold for the imposition of SPT February 17, 2021.
to 3,226 bpd for the full year 2020 (2019: 3,007 lifted from $50 per barrel to $75 per barrel for the At the same time, the Honourable Justice
bpd); The increase in year-on-year production, financial years 2021 and 2022. Confirmation of Petra Hanna-Adderley provided a number of
despite no new drilling in 2020, is the result of these reforms represents a considerable boost to procedural rulings and guidance in relation to
the Company’s rigorous approach to manag- potential cash generation from Trinity’s onshore the judicial review application. This included
ing every aspect of our production operations; licences should realisations average above $50.01 establishing the dates on which the Court will
During Q4-2020, four recompletions (RCPs) per barrel for any calendar quarter during 2021 hear the judicial review application, which will
(Q3-2020: 8) and 31 workovers were completed and 2022. 3D and 2D seismic and well log data be March 29-30, 2021, with a ruling to follow at
(Q3-2020: 27) with swabbing operations con- acquired from Heritage Petroleum. Provides the some point thereafter.
tinuing across onshore and West Coast assets; A basis for developing a new structural and strati- Drilling of the Perseverance-1 exploration
total of 18 RCPs and 115 workovers were com- graphic framework in order to better understand well in The Bahamas has been underway since
pleted during 2020; The application of Supervi- how to maximise the value potential of Trinity’s December 20, 2020 (consistent with previous
sory, Control and Data Acquisition (SCADA) onshore licences. Improves Trinity’s ability to announcements prior to Christmas 2020). The
technology and wider scale automation ramped identify subsurface targets, particularly for high well remains on track to take 45-60 days from
up during Q4-2020 and the Group is on track angle and horizontal wells. Facilitates the iden- commencement to complete.
to have 31 Tier 1 onshore wells fully automated tification and maturation of new appraisal and BPC will provide further updates in relation
by H2-2021. With further roll out over a longer exploration targets onshore. to the Court process as and when there are any
period the full production benefits and operating Trinity Exploration & Production, January 21 material developments.
cost savings will become increasingly apparent. 2021 Simon Potter, CEO of BPC, said: “Despite
Q4-2020 Financial Highlights: Average numerous opportunities over many years to
realisation of $37.9 per barrel for Q4-2020 (Q3- input constructively, environmental groups
2020: $39.3 per barrel) yielding a full year 2020 LEGAL seem determined simply to derail BPC’s project
average of $37.4 per barrel (FY 2019: $58.1 per in The Bahamas. Attempts to secure orders from
barrel). As a result, no SPT will be payable for Bahamas Petroleum Co. the Court to this effect have not been successful,
2020. Operating break-even estimated at $20.5 and the drilling of Perseverance-1 continues.
per barrel for FY 2020 (2019: $26.4 per bar- provides update on court Likewise, these groups have argued that BPC
rel). Net hedge income of $1.4mn during 2020 should be excluded as a party to the judicial
(unaudited). Three new instruments purchased process for Perseverance-1 review action they have brought, despite virtu-
during Q4-2020offering downside protection ally all communications and documents issued
for between 30-50% of expected monthly pro- Further to BPC’s recent announcements in rela- by these groups referring directly and extensively
duction levels for 2021. Cash balance of $20.2mn tion to the Court process in The Bahamas, on to BPC. We are pleased that the Court has rec-
(unaudited) as at December 31, 2020, versus January 22, 2021, The Honourable Justice Petra ognised the inconsistency of this position, and
$13.8mn (audited) as at December 31, 2019, and Hanna-Adderley provided her ruling on the sub- ruled in BPC’s favour. As a respondent to the
$22.2mn (unaudited) as at September 30, 2020. ject of BPC being added as a primary respond- application BPC will have full standing on the
Cash balances at year end in-line with guidance ent to the application brought by environmental matter in Court, and in a cost sense, the appli-
given in Q3 2020 update and reflects investment groups against the Government of The Bahamas, cants can be held financially accountable if their
in growth projects during Q4-2020. Net cash seeking a judicial review of various decisions action turns out to have been without merit. BPC
(cash minus $2.7mn drawn working capital taken by the Government in relation to BPC’s thus welcomes the ruling.”
facility) of $17.5mn as at December 31, 2020 licences and the drilling of Perseverance-1. Bahamas Petroleum Co., January 25 2021
(unaudited), versus $13.8mn as at December
31,2019 (audited). The 27% increase in net cash
balances during the year was driven by strong
operating cash flow generation and achieved
despite a 36% reduction in average oil price real-
isations versus 2019. During Q4-2020, the work-
ing capital facility has been further increased to
$5.0mn ($2.3mn undrawn) to enhance liquidity
position further.
Q4-2020 Key Developments: Memoran-
dum of understating (MoU) signed with NGC,
to explore and develop new projects to enable
energy transition in Trinidad and, potentially,
in the wider Caribbean and Latin America,
including a micro LNG business; Renewable
energy opportunities, inclusive of a wind power
generation project; Pursuit of stranded gas assets

Week 04 28•January•2021 www. NEWSBASE .com P15