Page 15 - LatAmOil Week 22 2021

LatAmOil NEWS IN BRIEF LatAmOil

CPF-2 on track and on budget: Materials for production gains compared to the prior quarter. understanding (MoU) with The University of
phase two of its central processing facility (CPF- The recently completed Tie-2 well tested just the West Indies (UWI), St. Augustine Campus,
2) continue to be installed and the project is on over 2,000 boepd to the rig tanks, which was well to explore and develop new projects to enable
track for a Q3- or Q4-2021 commissioning. above our expectations. During the first quar- energy transition in Trinidad and Tobago, and,
Reiterating 2021 guidance: The Company is ter, drilling of Tie-3 yielded a pleasant surprise potentially, in the wider Caribbean and beyond.
reaffirming its 2021 average production target through the discovery of a brand-new oil-bear- This collaborative initiative is part of Trinity’s
of 11,500 bpd. ing reservoir on the western flank of the Tie field. and UWI’s wider strategic objectives to enhance
Operations Update: As previously Evaluation of the Itaparica reservoir took some competencies and build capacity in renewables
announced, the technical team has completed time, and was somewhat hampered by unstable while challenging and further reducing carbon
the new 7D well, seeing favorable rates in the first flow rates. However, after perseverance, 42° API output across the region.
four weeks, including average production rates oil flowed naturally into the rig tanks. Subse- As Trinity drives toward becoming an energy
during the past week of 4,000 bpd, exceeding quent downhole pressure tests confirmed a new company of scale, this initiative is part of its par-
booked reserve expectations. virgin pressure regime and that the Itaparica allel efforts to both explore and develop energy
Current total field production is 10,225 bpd reservoir appears to have low permeability. The transition initiatives (such as micro-LNG, wind
and has been impacted by two oil wells being plan for Tie-3 now is to place it on temporary and solar power) and to progress carbon emis-
shut in awaiting water disposal pump enhance- artificial lift until water cut increases to a point sion reduction and offset of Trinity’s output.
ments, which will be completed shortly. The pro- where it will be converted to a water injector. Strong relationships with highly respected insti-
duction impact of the shut-in wells is estimated “Preliminary interpretation of the Itapar- tutions like UWI will be fundamental to achiev-
at 1,200 bpd over the last four weeks. As a result, ica suggests that it extends to the north and ing these important long-term goals.
field production during April averaged 7,812 west of the Tie oilfield and could open up new The world is continuing its energy transition
bpd and 9,994 bpd for May. reserve volumes in the future. Initial analysis journey and these value-added initiatives will
The Company is currently drilling the 3WD also suggest that the Itaparica will respond well contribute towards maximising the benefits
well, its second water disposal well, which is now to hydraulic stimulation, just like the Penedo from Trinidad and Tobago’s natural resources.
expected to be completed in the first week of July. sandstone at Tartaruga. Needless to say, this new This initiative further supports Trinidad and
This well will enable PetroTal to proceed with find adds further excitement to the Tie oilfield Tobago’s ambitions towards lowering GHG
enough water disposal capacity (an addition of development. emissions in line with best practice and the Paris
50,000 barrels of water per day) to accommo- “The price of oil recovered well during the Accord.
date the next 14 months of drilling and provide quarter and seems to have stabilised around the The MOU covers a range of business oppor-
important reservoir characterisation data for USD 65/bbl mark. At these levels we generate a tunities, renewables or otherwise, which may be
future development. very healthy corporate netback which allows us mutually beneficial to the Parties. The inaugu-
PetroTal, June 01 2021 to continue our organic growth by using inter- ral output from this partnership will be a Wind
nally generated cashflow. A further positive pric- Resource Assessment project situated in the
Maha Energy issues ing update is that Petrobras revised the annual southeast of Trinidad. The project will gather
discount we receive for our crude oil delivered technical data with a goal to determine the fea-
`Q1-2021 report from the Tie field. The discount for the next 12 sibility of developing a renewable energy wind
months was reduced by $3 per barrel, meaning farm at that location in order to generate and
Maha Energy AB is pleased to announce its first our new net discount for 2021 is $5.86 per barrel. supply power to the stakeholders in that region,
quarter results. We continue to work hard to improve our dis- including Trinity’s operations.
First Quarter 2021: The Company secured a counts with our other Brazilian customer. Trinidad and Tobago’s electricity generation
$60mn loan financing and $10mn equity invest- Maha Energy, May 26 2021 is almost completely fired by natural gas, with
ment with leading Brazilian investment bank circa 8% (circa 237 mcf per day or 39,500 boepd)
BTG Pactual. The Tie-3 oil producing well has of its substantial natural gas production being
tested a combined 628 boepd, (549 bopd, 0 bwpd COMPANIES channeled to electricity generation. In addition
and 470 mcf per day of gas) from the Itaparica to this, large amounts of natural gas is flared and
and Agua Grande reservoirs. The Sergi reser- Trinity Exploration signs vented across Trinidad’s brownfield operations.
voir was not tested at this time. Daily oil and gas Directing this gas to its power stations
production for Q1-2021 averaged 3,742 boepd MoU with university on deprives the country of much larger potential
(Q1-2020: 3,288 boepd). revenues that could be gained from exporting
Revenue of $15.8mn (Q1-2020: $11.2mn). new energy projects liquefied natural gas (LNG) or as feedstock
Operating netback of $11.0mn or $33.80 per boe for the production of petrochemicals such as
(Q1-2020: $7.9mn or $27.91 per boe). EBITDA AIM-listed Trinity Exploration & Production, ammonia and urea.
of $10.2mn (Q1-2020: $6.4mn). Net result of the independent E&P company focused on Trin- In order to optimise energy efficiency, more
$5.5mn (Q1-2020: $3.2mn). Basic Earnings per idad and Tobago, has signed a memorandum of transition fuels and renewables need to be
share of $0.05 (Q1-2020: $0.03). Diluted Earn- brought into the mix, leaving more gas to be
ings per share of $0.05 (Q1-2020: $0.03). Cash channelled to high-value petrochemicals or for
and cash equivalents balance of $5.7mn (Q1- LNG export. T&T’s relatively high CO2 emis-
2020: 19.2mn). sions from gas-fired electricity generation high-
From Jonas Lindvall, managing director: “I light the country’s need to adopt more efficient
am very happy to report another strong quar- transition fuels and renewable energy, such as
ter for the Company. The steady increase and photovoltaic solar and wind power, which would
stabilization in the price of oil price helped of also help address the issue of gas shortages and
course, but we also started the year off with good harmful emissions.

Week 22 03•June•2021 www. NEWSBASE .com P15