Page 15 - LatAmOil Week 42 2022

LatAmOil NEWS IN BRIEF LatAmOil

The Company’s successful drilling campaign, opportunities, which include further drilling in exhibiting the usual anticipated decline rates.
along with its programme of workovers and our core onshore areas, the East Coast Galeota Workovers in the automated wells have been
recompletions, is forecast to lead to a material licence and participation in the ongoing onshore reduced by 10%.
increase in operating cash flow for 2023, for licence round. I am pleased that we have built Net average production guidance for 2022
which no hedging instruments are in place and a resilient business and we are now targeting remains 2,900-3,100 bpd of oil (2021: 3,006 bpd
the Company will see the benefit of the recent significant opportunities in our portfolio that of oil).
reforms to Supplemental Petroleum Tax (SPT). have the potential to deliver material economic Q2-2022 Financial Highlights: Q2-2022
As announced on October 18, the Compa- returns to the Company and its shareholders.” average realisation of $84.3 per barrel (Q2-2022:
ny’s share buyback programme was successfully Q3-2022 Operational Highlights: Safely $96.8 per barrel; Q3-2021: $62.6 per barrel).
completed on October 17, with 672,000 Ordi- progressing the fully-funded drilling campaign Operating cash flow pre-tax and pre-hedg-
nary Shares repurchased for a total consider- within the WD-5/6 and Forest Reserve onshore ing of $8.6mn (unaudited), an increase of 25%
ation of approximately $1mn. The Board will blocks: The first two wells (PS 612 and PS 613) compared to the previous quarter (Q2-2022:
consider a further share buyback programme. successfully encountered target reservoir sec- $6.9mn).
Jeremy Bridglalsingh, CEO of Trinity, com- tions as prognosed, confirming our pre -drill Cash balance of $16.5mn (unaudited) as
mented: “A key element of delivering Trinity’s expectations and were brought into production at September 30, 2022 ($15.0mn as at 30 June
strategy is maintaining, and now increasing, our during the Period. Initial aggregate production 2022), reflecting the combination of strong oper-
base production, with results from the first three from these two wells was approximately 113 bpd ating cash generation, the impact of which has
wells in our drilling campaign being in line with of oil, within the expected range. been reduced due to hedging related payments
our expectations. The difficulties with the global The third well has subsequently been drilled and increased capex; primarily the drilling cam-
supply chain for our horizontal well is frustrat- successfully and is currently on production test. paign, and receipt of VAT refunds during the
ing, but notwithstanding these issues, we are Stable production: Q3-2022 production sold Period.
pleased that we will begin to see the impact of the averaged 2,990 bpd of oil (Q2-2022: 3,019 bpd of The Company commenced a $1m share buy-
current drilling campaign by the end of October oil; Q3-2021: 2,923 bpd of oil). back programme which was successfully com-
2022, and a meaningful step-change in produc- Year to date 2022 (Q1-Q3) average produc- pleted on 17 October, with 672,000 Ordinary
tion is expected in 2023 when the horizontal and tion volumes sold of 2,979 bpd of oil, broadly flat Shares repurchased.
deep wells are expected to be on production. year-on-year (Q1-Q3-2021: 2,995 bpd of oil). Average operating break-even for Q3-2022
“I welcomed the fiscal reforms announced by Five recompletions (Q2-2022: 9) and 32 was $32.2 per barrel (unaudited) (Q2-2022:
the Government of Trinidad and Tobago, which workovers (Q2-2022: 31) were completed dur- $31.3 per barrel; Q3-2021: $27.8 per barrel).
will reduce the amount of tax we will pay from ing the period, with swabbing continuing across Fiscal Reforms: The Government of Trinidad
next year. The Company will continue to cham- the Onshore and West Coast assets. and Tobago’s 2023 Budget Statement announced
pion further tax and regulatory reform to make Ongoing benefits from onshore automation: proposed reforms to the SPT. The changes for
investment in Trinidad competitive in an inter- Production volatility has been reduced and in onshore production will positively impact our
national context. WD 5/6 production volumes from automated cashflow, thereby increasing our capacity to
“Trinity has a strong hopper of exciting wells have increased marginally rather than reinvest.

Week 42 19•October•2022 www. NEWSBASE .com P15