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(Alliance News) - Trinity Exploration & Production PLC on Thursday reported a 6% quarter-on-quarter drop in average third quarter production due to due to a combination of weather-related electrical supply disruptions, low availability of rigs due to a bottleneck in rig certifications and higher than normal closing stocks.
The Trinidad & Tobago focused exploration company added that the rig issue is being resolved as the backlog of pending approvals are beginning to clear.
For the three months to September 30, the Leeds, England-based company's average production volumes totalled 2,816 barrels of oil per day, down from 2,996 barrels in the second quarter. In the third quarter of 2018, production totalled 2,734 barrels.
Trinity Exploration completed four new onshore infill wells as part of its second half drilling programme, with two new wells drilled being brought on production during the quarter and a third one brought on production subsequent to the period end.
As a result of new wells, the company's base production increased steadily with average October to date production of 3,017 barrels of oil per day, with an expected year end exit production rate of 3,400 barrels.
Trinity Exploration said it also took advantage of a spike in oil prices in the third quarter due to Saudi Arabia drone attacks to implement a further tranche of its hedging programme, which is designed to partially mitigate the impact of petroleum taxes whilst retaining exposure to rising oil prices.
As a result of the hedge, the company now has a total of 35,000 barrels per month hedged, around 41% of third quarter production.
"We continue to focus on increasing our low-cost high margin production while developing our asset base and utilising new technologies in order to maximise the resultant returns. The company is pleased with the production achieved by the three new completed infill wells, including from our first High Angle Well which we see as integral to achieving our growth ambitions going forward," Trinity Exploration Chair Bruce Dingwall said.
Trinity Exploration shares were down 3.2% at 9.68 pence each in London on Thursday afternoon.
By Tapan Panchal; tapanpanchal@alliancenews.com
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