Trinity Regulatory News (TRIN)

 

4 October 2023

Trinity Exploration & Production plc

("Trinity" or "the Group" or "the Company")

Trinidad and Tobago Budget Highlights

Trinity Exploration & Production plc (AIM: TRIN), the independent E&P company focused on Trinidad and Tobago, welcomes the Government of Trinidad and Tobago stated intention to stimulate higher levels of activity and investment in the energy sector as set out in the 2024 Budget Statement delivered on Monday 2 October 2023 (the "Statement").

The Statement (https://www.finance.gov.tt/2023/10/02/budget-statement-2024-building-capacity-for-diversification-and-growth/) included a proposal to change the Supplemental Petroleum Tax ("SPT") regime for shallow marine areas similar to reforms that have been made previously to onshore activities. In addition, the proposed review of the capital expenditure write-off regime, seems intended to be in favour of operators such as Trinity.  The Statement also included a proposal to increase the Sustainability Allowance from 20% to 25%.

The proposed SPT changes, which are subject to further definition through the legislative process and Parliamentary ratification, are expected to meaningfully improve the economics of the Company's East Coast and West Coast shallow marine licences.

Jeremy Bridglalsingh, Chief Executive Officer of Trinity, commented:

"Trinity welcomes the Government's third consecutive year of incentives focused on stimulating activity in the energy sector, and specifically oil production. The proposed SPT changes for offshore production will positively impact our cashflow when Realised oil prices are below $75/bbl, increasing the resilience of our business, our capacity to reinvest through the oil price cycle and will positively impact our potential projects on our East Coast and West Coast licences."

 

 

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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.