The next focusIR Investor Webinar takes place tomorrow with guest speakers from WS Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Wow. The market sure doesn't like this share. With a maiden divi, new discovery about to be tested and positive budget changes, I find it hard to see why the drop is so severe even with the global softening of oil prices.
Https://www.investorschronicle.co.uk/ideas/2023/10/03/an-undervalued-oil-play/
The Budget Statement’s been published at https://www.finance.gov.tt/wp-content/uploads/2023/10/2023.10.02-2024-Budget-Statement.pdf
There’s this on page 60:
“To assist this process, in the Finance Bill 2023, I will make further appropriate adjustments to the supplementary petroleum tax regime for small oil producers in the shallow water areas, similar to what we have done for small onshore producers. We will also re-examine the capital expenditure write-off regime to
determine what changes can be made without sacrificing too much revenue.”
It’s followed up on page 128:
“I propose to increase the Sustainability Incentive from 20 percent to 25 percent with respect to the rate of supplemental petroleum tax for any mature marine or small marine oil fields. This will encourage smaller oil producers and lease operators in small and mature marine oil fields to incentivise further their production. In the Finance Act 2023, I also propose to introduce adjustments to the SPT regime for the shallow water areas, similar to what we have implemented for small onshore producers, introducing a new threshold of $75 per barrel for SPT for small shallow water producers. Where feasible, we will also make suitable adjustments to the capital expenditure allowances for small shallow water producers.
“These measures will take effect on January 1, 2024 and will require amendments to the Petroleum Taxes Act, Chap. 75:04.”
Also note page 59, where the Minister states: “I am confident with the near-term outlook for oil production, which is expected to increase from the aggressive drilling programme of Heritage, our largest producer; new production by EOG and Trinity, recent discoveries by Touchstone; and the general fiscal incentives made available to onshore producers and shallow water marine areas in recent times.”
Thank you for pointing us to U Tube and the budget details just finished watching through. In fact the budget staement is still going on, but he has moved onto ther things.
The Finance Minister has just announced his intention to reform off-shore marine SPT in the same way that he did on-shore last year. If the onshore provisions are applied to off-shore marine, Trinity will pay no SPT on their off-shore production when the realised oil price is below $75. In the first half of this year alone that would have saved them $3.3 million in SPT. It’s excellent news.
Fair enough, the downside seems relatively limited with WTI where it is right now.
Well down on minimal volume. Lots of concerns but I will bank the divi and see how the flow test goes
PipeDragger
Agreed, I think they are further behind than they are admitting. Hardly a surprise. But I do not agree that 300 bopd would be a great result. 500 would, but not 300 - it would take them ages to get their money back at 300 bopd and declining.
It's fantastic news when flow rates are announced at 1000 bopd. It's great news if it is 300 bopd. It's a dud if it yet another 50 bopd. We don't know which it is because they haven't flow tested the discovery.
No major delays and they are expecting oil to flow.
Market will have missed this update hidden in the interims.
Final testing of equipment is currently in progress and initial production is anticipated within days. Oil produced will immediately be sold to the state oil company, Heritage.
This is very good news. Its within days
Yeashh, when will they ever learn not set targets they can't meet! September is almost over and they have not done the flow testing. On the positive side, the dividend is being paid next month.
Although our attention for now is on tomorrow morning’s interim results, Trinidad and Tobago’s Energy Chamber have today published an article on what they’d like to see in Monday’s budget. You can find it at https://energynow.tt/blog/what-we-would-like-to-see-in-the-national-budget and there’s a slightly longer version at https://trinidadexpress.com/business/local/driver-eyeing-oil-and-gas-tax-reform/article_35023112-5cd9-11ee-b23a-6f53675e473f.html
We know most of the numbers already so no major surprises. I am more interested in an update on flow testing the new deep discovery.
Simon Thompson take note.. In your coulmn this week we need you to keep talking up JOG, TXP, and Trinity. Thank you for all your hard work though Simon, and we enjoy your IC column..... And if I ever get to meet you at an investor meeting I am going to shake you by the hand.
Come on Trinity, should be a big rise tommorow. Trinity and TXP deserve better. Oh and JOG of course..
Poised…….interims tomorrow!
Moving down slowly
Moving up slowly.
Just added 2 x 5,500 sub 90p. Looking ready for a big move north as September draws to a close
I am not local in Trinidad so I can't nip round to eyeball what they are up to. Anyone know if they demobilised the drilling rig yet? Or even if they have brought in the workover rig yet? 6 weeks ago they were expecting to be in production this month so there should be changes to see on site by now.
Trin does not have a good track record and the longer we go without news the greater the likelihood of further disappointment.
Given the terminology used in the previous RNS, it does seem a bit of an open goal. Even without Jacobin TRIN is massively undervalued given the current oil price and the impact it will have on turnover and profits. Add to that an imminent dividend it does seem crazy that interest is so low!
Is it just me or are the market missing a gift horse
Sorry I meant expected during well testing.
I am very confident here and increased my position