Trinity Exploration & Production (TRIN) has released an operational update on their activities in Trinidad and Tobago, reflecting a company that is consistently hitting production targets and sits on a growing cash pile. Shares are up nearly 9% directly following the news.
The quarterly report highlighted production volumes remained at an average of 2,996 bopd which was in line with the company’s expectations. However, rates are expected to rise, according to the report, as Trinity resumes onshore drilling activity.
The solid production volumes resulted in an 8.6% increase in year-on-year group production for H1 2019.
The company is now ready to focus on the 2019 drill programme, with the rig mobilised and the first new infill set to spud at the WD-2 asset this Thursday.
In regards to their cash balance, Trinity is reporting their unaudited balance has increased to $17.8 million as of the end of June, which they attribute to “controll[ing] [their] operating costs and capital expenditures carefully.”
Moving forward, the update relays that Trinity, “contingent upon the prevailing oil price environment, and subsequent investment,” is expecting to round out 2019 with a net average production in the range of 3,000-3,300 bopd.
Executive Chairman of Trinity Bruce Dingwall commented, "Our strong balance sheet and robust base production mean that we are delivering our financial and production targets, and at the same time, ensuring that we can take advantage of any strategic opportunities that may arise...
Given the strength of our business model, the ongoing work programme and visibility afforded by our balance sheet, we continue to face the future with confidence."
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