This is as simple an understanding of TRIN as I believe I can possibly give. Subtract cash at Q2 2019 from Q4 2018. This is a period with no drills (relatively low capex) and provides a very simple model of cash v BOPD. This model can then be used to estimate Q3 2019 cash. Clearly the model is out because there were 4 wells drilled in Q3, so it is possible to derive from the model error an approximate cost per well. So, now you have a model based on number of wells and BOPD with which you can estimate cash. The model can be honed to account for WTI using simple factoring. Using a Q4 2019 BOPD of 3200, I anticipate the year end cash to be up on 2018 year end ("cash generative").
Total Shareholder Return ("TSR") performance targets13 Oct 2019 16:31
I was on holiday last week when I posed the question regarding Bruce and Jeremy’s Long-Term Incentive Plan ("LTIP"). I am back now and sharing what I have read. December 2021 is the month over which performance is measured. The benchmark is Total Shareholder Return (increase in share price plus the value of any dividends paid). The baseline share price is 14.66p. The incentive plan is assessed against a comparator group and if performance is below the group median, they receive nothing. Above the median there is a sliding scale up to 1,653k shares
A few years back oil price made life for many extremely difficult and while the share price is disappointing I cannot but admire the resilience TRIN has shown. I am enthusiastic about this years drill programme and technology trials, the result of which I expect will increase production, reduce costs and so generate cash. The business is healthy with improvements planned and delivered year on year.
GO, don’t be too apologetic. The BoD fed their faces first and threw crumbs to PIs. I note that there is no reference to this in your correspondence with Tracey. In great PR fashion Tracey has focused on “don’t blame us, it was them”. The offer price was too low and the BoD created an opportunity for themselves to buy shares at a significant discount. The only fair way to do this is an equal offer for ALL shareholders, NOT an “I’ll eat from the trough first” approach that they created.