Malcy view15 Jan 2019 16:43
Don't always agree but think this is spot on:
Trinity Exploration & Production It is fair to say that Trinity ‘knocked the lights out’ as they say in Q4 as they report operational numbers this morning. The fully funded onshore drilling programme brought on no fewer than six new wells in the period, all on time and below budget.
No surprise then that the company report a ‘strong upswing in production’ during the period. The numbers speak for themselves, a 17% increase in production q/q to 3,205 bopd and a 14% y/y increase to 2,871 bopd. Annualised production was underpinned by a combination of 8 new onshore development wells coming on stream as well as the company’s regulation programme of low cost recompletions, workovers reativations and swabbing. Given that most of those wells were only started late in the year the outlook for 2019 is highly encouraging.
In addition to all that TRIN report a successful RCP at Trintes, the first since the company took over as operator in 2013 and is on production at a rate ahead of management expectations. As promised the first phase of the FDP for the TGAL field was submitted in the period and work now continues on pre-FEED studies and environmental approvals pre FID.
The company is now incredibly strong financially with cash of $11.8m and no debt, the cash figure is understated by $5.1m as a result of the Petrotrin restructuring which is confidently expected to be received in 2019.
Trinity remains in an incredibly strong position with, in its own words ‘profitable production, a healthy cash balance, no debt,strong cash flow generation and a portfolio operating break-even of below $30/bbl’. All I can add is that a company with such high a margin, well managed position with substantial growth opportunities should be on a much higher rating than it is at present.
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