Last checked at 4 Jan 2024 07:00
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4 January 2024
Trinity Exploration & Production plc
("Trinity" or "the Group" or "the Company")
Fiscal Reform: Trinidad and Tobago Finance Act 2023
Trinity Exploration & Production plc (AIM: TRIN), the independent E&P company focused on Trinidad and Tobago, is pleased to announce that further to previous announcements, the Trinidad and Tobago Finance Act 2023 ("The Act") was assented to by the President on 20 December 2023 and is now in effect.
The Act (https://www.ttparliament.org/wp-content/uploads/2023/12/a2023-15.pdf) includes reforms to the Supplemental Petroleum Tax ("SPT") regime. In particular, effective 1 January 2024, the SPT rates applicable to Small Shallow Marine Area Producers are shown in the table below. The Act defines Small Shallow Marine Area Producers as "a person who carries out petroleum operations in shallow marine areas under a license, sub-license or contract and produces less than four thousand barrels of crude per day". Based on this definition, all of Trinity's existing offshore production as well as future growth projects that fall within this production threshold, will benefit significantly from this reform.
Previous SPT - Shallow Marine |
| Amended SPT - Shallow Marine | ||
Oil Price (USD) | Rate of SPT | Oil Price (USD) | Rate of SPT | |
$0.00 to $50.00 | 0% | $0.00 to $75.00 | 0% | |
$50.01 to $70.00 | 15% | |||
$70.01 to $90.00 | 20% | $75.01 to $90.00 | 18% | |
$90.01 to $200.00 | 20% + 0.2% (P - USD 90.00) | $90.01 to $200.00 | 18% + 0.2% (P - USD 90.00) | |
$200.01 and over | 42% | $200.01 and over | 40% | |
Note: P = weighted average crude oil price in USD. | ||||
SPT liability for Trinity's offshore production is estimated at USD4-5m for 2023 and we expect a similar amount, adjusted for production, to be additional operating cash flow in 2024 and future, at current long term oil price forecasts, which suggests that the realised price will be below USD75/bbl.
Jeremy Bridglalsingh, Chief Executive Officer of Trinity, commented:
"We welcome this proactive approach from the Government which will provide us with additional growth opportunities. These reforms will positively affect our cashflow throughout 2024 and be of material benefit to the Company's growth projects, in particular the Trintes and wider Galeota developments."
Enquiries:
Trinity Exploration & Production plc Jeremy Bridglalsingh, Chief Executive Officer Julian Kennedy, Chief Financial Officer Nick Clayton, Non- Executive Chairman | Via Vigo Consulting |
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SPARK Advisory Partners Limited (Nominated Adviser and Financial Adviser) Mark Brady James Keeshan | +44 (0)20 3368 3550 |
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Cavendish Capital Markets Limited (Broker) Leif Powis Derrick Lee Neil McDonald | +44 (0)20 7397 8900 +44 (0)131 220 6939 |
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Vigo Consulting Limited Finlay Thomson Patrick d'Ancona | trinity@vigoconsulting.com +44 (0)20 7390 0230 |
About Trinity (www.trinityexploration.com)
Trinity is an independent oil production company focused solely on Trinidad and Tobago. Trinity operates producing and development assets both onshore and offshore, in the shallow water West and East Coasts of Trinidad. Trinity's portfolio includes current production, significant near-term production growth opportunities from low-risk developments and multiple exploration prospects with the potential to deliver meaningful reserves/resources growth. The Company operates all of its ten licences and, across all of the Group's assets, management's estimate of the Group's 2P reserves as at the end of 2022 was 17.96 mmbbls. Group 2C contingent resources are estimated to be 48.88 mmbbls. The Group's overall 2P plus 2C volumes are therefore 66.84 mmbbls.
Trinity is quoted on AIM, a market operated and regulated by the London Stock Exchange Plc, under the ticker TRIN.