Trinity Regulatory News (TRIN)

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This announcement is not an admission document. This announcement does not constitute or form part of, and should not be construed as, any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares in the Company or securities in any other entity nor shall it, or any part of it, or the fact of its distribution, form the basis of, or be relied on in connection with, any contract or investment decision in relation thereto. This announcement does not constitute a recommendation regarding any securities.

Any investment decision must be made exclusively on the basis of the final admission document published by the Company and any supplement thereto (the "Admission Document"). A copy of the Admission Document is available on the Company's website.

13 February 2013

Bayfield Energy Holdings plc

(the "Company" or "Bayfield"; AIM:BEH)

Operations Update

Bayfield and Trinity Exploration & Production Ltd ("Trinity") wish to provide an update on current operations ahead of the General Meeting of Bayfield on 13 February 2013.

Production

January net production for Bayfield averaged 1,481 bopd (2,278 bopd - gross) and for Trinity 2,260 bopd representing aggregate net production for the two groups of 3,741 bopd.

Trintes

Production from the Trintes field has recently been impacted by a number of factors including a failure of the main generator on Alpha platform ("Alpha"). Current gross production is c.1,800 bopd (c.1,170 bopd net).

Following repairs to the generator, intervention work has been undertaken to resume production from the wells impacted by the power outage. Production from these wells is increasing though still at levels below those achieved prior to the incident. Twelve wells from a total of 36 potential production wells are currently shut-in awaiting remediation. None of the recently drilled development wells which have utilised modern completion techniques and pumping equipment are impacted.

The programme of remedial action is underway and is expected to add gross production of up to c.410 bopd by the end of March. Action has already been taken to install new generator sets on Alpha and programmes of preventative maintenance implemented to reduce risk of future power outages. 

Separately, operations commenced on the B5X well on 7 February 2013. The schedule for eight infill development wells for 2013 is unchanged.

Trinity

January sales averaged 2,260 bopd (net), ahead of budget for the period. Trinity drilled two onshore wells during January and is currently drilling a third well and so is ahead of its plan to drill a total of 12 onshore wells in 2013. The two wells drilled to date are currently being completed and should be in production in the next two weeks.

Additionally, Trinity plans to initiate a programme of workover activities at its Brighton field during February. Trinity has acquired a capillary tubing unit to optimise its gas lift mechanism with eleven wells targeted for workover. As per the CPR, initial incremental rates from this project could be in the order of 135-150 bopd (net) in aggregate.

Hywel John, Chief Executive Officer of Bayfield, said:

"We are working closely with our counterparts at Trinity to address the production issues encountered. The ability to address these issues in a timely manner demonstrates the additional resources that can be deployed as a consequence of the combination of the two groups."

Monty Pemberton, Chief Executive Officer of Trinity, commented:

"We are pleased that Trinity is ahead of its 2013 production budget and to be close to completing our third onshore well this year. We eagerly await completion of the merger with Bayfield to provide the financial resources needed to rectify Bayfield's current production issues and deliver the work programme as presented in the Admission Document. We remain confident that we will achieve the previous guidance of 5,000 bopd exit rate for 2013."

-ends-

Enquiries

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The Shares have not been nor will be registered under the United States Securities Act of 1933, as amended (the "US Securities Act"), or under the securities legislation of any state of the United States of America, nor under the relevant securities laws of Canada, Republic of South Africa, Australia or Japan, and may not be offered or sold in the United States of America except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the US Securities Act and in compliance with any applicable state securities laws. There will be no offering of Shares in or into the United States of America, Canada, Republic of South Africa, Australia or Japan or in any country, territory or possession where to do so may contravene local securities laws or regulations. This document (or any part of it) is not to be reproduced, distributed, passed on, or the contents otherwise divulged, directly or indirectly, in or into the United States of America, Canada, Republic of South Africa, Australia or Japan, or in any country, territory or possession where to do so may contravene local securities laws or regulations.

Seymour Pierce and FirstEnergy (the "Banks"), each of which are authorised and regulated in the United Kingdom by the Financial Services Authority, are acting for the Company in connection with the proposals set out in this announcement (the "Proposals") and will not be acting for any other person or otherwise be responsible to any person for providing the protections afforded to customers of the Banks or for advising any other person in respect of the Proposals. The Banks have not authorised the contents of any part of this announcement and neither accepts liability for the accuracy of any information or opinions contained in this announcement nor for the omission of any material information from this announcement for which the Company is responsible. No representation or warranty, express or implied, is made by the Banks as to any of the contents of this announcement (without limiting the statutory rights of any person to whom this announcement is issued).

RBC, which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting as financial adviser to Trinity Exploration & Production Limited ("Trinity") in connection with the Proposals and joint bookrunner to the Company in connection with the Placing and will not be acting for any other person or otherwise be responsible to any person for providing the protections afforded to customers of RBC or for advising any other person in respect of the Proposals. RBC has not authorised the contents of any part of this announcement and neither accepts liability for the accuracy of any information or opinions contained in this announcement nor for the omission of any material information from this document for which the Company is responsible. No representation or warranty, express or implied, is made by RBC as to any of the contents of this announcement (without limiting the statutory rights of any person to whom this announcement is issued).

Jefferies International Limited ("Jefferies"), which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting as joint bookrunner to the Company in connection with the Placing and will not be acting for any other person or otherwise be responsible to any person for providing the protections afforded to customers of Jefferies or for advising any other person in respect of the Proposals. Jefferies has not authorised the contents of any part of this announcement and neither accepts liability for the accuracy of any information or opinions contained in this document nor for the omission of any material information from this document for which the Company is responsible. No representation or warranty, express or implied, is made by Jefferies as to any of the contents of this announcement (without limiting the statutory rights of any person to whom this announcement is issued).

This announcement includes statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "anticipates", "expects", "intends", "may", "will" or "should" or, in each case, their negative or other variations or comparable terminology. These forward-looking statements relate to matters that are not historical facts.

By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance. The Company's actual investment performance, results of operations, financial condition, liquidity, dividend policy and the development of its financing strategies may differ materially from the impression created by the forward-looking statements contained in this announcement. In addition, even if the investment performance, result of operations, financial condition, liquidity and dividend policy of the Company and development of its financing strategies, are consistent with the forward-looking statements contained in this announcement, those results or developments may not be indicative of results or developments in subsequent periods.

These forward-looking statements speak only as at the date of this announcement. Subject to its legal and regulatory obligations (including under the AIM Rules), the Company expressly disclaims any obligations to update or revise any forward-looking statement contained herein to reflect any change in expectations with regard thereto or any change in events, conditions or circumstances on which any statement is based.