Page 14 - LatAmOil Week 05 2023

LatAmOil NEWS IN BRIEF LatAmOil

The total number of shares held in Treasury at West Coast, ABM-151: The Company has drill-ready prospects and mapped leads both on
January 30, 2023, is 1,224,000 (3.1% of the Com- been progressing a reactivation programme existing acreage and the Buenos Ayres block.
pany’s shares in issue). for a key West Coast well, ABM-151, involving In Q4 2022, the Company placed an order
Operating break-even is the realised price per the installation of a new crow’s nest and boat for the specialist drilling tool required for the
barrel where the adjusted EBITDA per barrel for landing, together with remote surveillance planned horizontal well. That tool is being man-
the Group is equal to zero. technology. Final approvals are being sought to ufactured specifically for Trinity with a delivery
Outlook, Hedging Position: The company introduce hydrocarbons into the system which is date during Q2 2023.
incurred substantial hedging costs in 2022 as anticipated in February 2023 at an expected rate Trinity Exploration & Production, 30 January
a consequence of high oil prices following the ranging between 60-110 bpd of oil. 2023
Russian invasion of Ukraine. Those hedging 2022 Onshore and Nearshore Competitive
instruments gradually unwound over the course Bid Round: On January 9, 2023, Trinity submit- Petrobras discloses proved
of 2022, and from January 1, 2023 the Company ted a bid for the Buenos Ayres block in the 2022
has no hedging instruments in place. The total Onshore and Nearshore Competitive Bid Round reserves as of end-2022
cash cost of the hedging programme in 2022 was conducted by the Government of Trinidad and
$10.4mn. Tobago Ministry of Energy and Energy Indus- Petrobras discloses its proved reserves of oil,
The Company believes that hedging remains tries (MEEI), which had been launched on July condensate and natural gas, according to SEC
a valuable component of its risk management 8, 2022. (US Securities and Exchange Commission) reg-
toolkit and will continually monitor the oil price At a bid round closing ceremony on Janu- ulation, estimated at 10.5bn barrels of oil equiv-
environment alongside its financial commit- ary 9, 2023, the MEEI opened 16 bids covering alent (boe), as of December 31, 2022. Oil and
ments to determine any future hedging strategy. eight of the 11 blocks offered in the bid round, of condensate, and natural gas correspond to 85%
Fiscal Reforms: The Government of Trinidad which two (Trinity’s and one other) were for the and 15% of this total, respectively.
and Tobago’s 2023 Budget Statement announced Buenos Ayres block. Successful bids are expected In 2022, Petrobras made the biggest reserves
reforms to Supplemental Petroleum Tax and to be announced three months following the addition in its history (2.0bn boe), for the second
Investment Tax Credit. These were assented to close of the bid round. consecutive year, reflecting the excellent perfor-
in the Finance (No. 2) Act, 2022 on 20 Decem- Buenos Ayres is located immediately to the mance of our assets.
ber 2022. The benefit to Trinity’s cash flow, at west of Trinity’s existing Palo Seco area interests This reserves addition occurred mainly due
a Brent oil price of $80 per barrel, is estimated with Blocks WD-5/6, WD-2 and PS-4 and, at to the progress in the development of Búzios
to be in the order of $2.5mn per annum for the its closest, is only around 500 metres from the field, and to new projects to increase oil recov-
existing business. In addition, new oil wells in Company’s existing sub-licences. This proxim- ery in other fields in Santos and Campos Basins,
shallow-water marine areas (the definition of ity, together with Trinity’s advanced technical in addition to appropriations related to the good
which covers Trinity’s East Coast and West Coast understanding of the area’s stratigraphy from the performance of reservoirs. We did not have rel-
assets), whether in existing fields or new fields, 2020 purchase and subsequent integration and evant changes related to the variation in the oil
will benefit from lower Supplemental Petroleum mapping of the Palo Seco and NWD 3D seismic price.
Tax rates. We await the legislation, which will datasets, gives the Company confidence that it We had reductions due to the transfer of
allow us to calibrate the economic uplift associ- has submitted a highly credible and attractive interests of 5% of the Surplus Volume of the
ated with this amelioration. application to the MEEI. Transfer of Rights of Búzios field, to the effects
East Coast, Galeota: The Company is pro- Drilling Update: On January 26, 2023, Trin- of the Co-Participation Agreements of Atapu
gressing its assessment of alternative develop- ity announced that it is progressing to drill the and Sepia fields and to the sales of properties in
ment concepts for the Galeota licence on the deep Jacobin well in the WD-5/6 area. The well mature fields. The organic reserves replacement,
East Coast, taking account of the fiscal reforms will test a structural prospect defined on 3D that is, excluding such effects, resulted in 239% of
introduced for new shallow marine wells. This seismic, with target reservoirs of Lower Cruse the year’s production.
includes acceleration of production of existing Miocene-age turbidite sandstones. The well will The ratio between proved reserves and pro-
2P reserves from the Trintes field. On comple- also intersect multiple shallower stacked reser- duction (R/P ratio) increased to 12.2 years.
tion of this work the Company may re-engage voir targets. Petrobras historically submits at least 90%
with counterparties that participated in a far- A successful well would unlock both a fur- of its proved reserves according to SEC defini-
mout process in 2022. ther development of Jacobin and follow-on tion to independent evaluation. Currently, this
evaluation is conducted by DeGolyer and Mac-
Naughton (D&M).
Petrobras also estimates reserves according
to the ANP/SPE (National Agency of Petroleum,
Natural Gas and Biofuels / Society of Petroleum
Engineers) definitions. As of December 31,
2022, the proved reserves according to these
definitions reached 10.7bn barrels of oil equiva-
lent (boe). The differences between the reserves
estimated by ANP/SPE definitions and those
estimated using SEC regulation are mainly due
to different economic assumptions and the pos-
sibility of considering as reserves the volumes
expected to be produced beyond the conces-
sion contract expiration date in fields in Brazil
according to ANP reserves regulation.

P14 www. NEWSBASE .com Week 05 01•February•2023