Completion of PS-4 Acquisition

Source: 11/22/2021, Location: South America

Trinity Exploration & Production plc, the independent E&P company focused on Trinidad and Tobago, is pleased to confirm that, further to its announcement on 4 May 2021, it has now received all the approvals necessary to complete the acquisition of a 100% interest in the PS-4 Block Lease Operatorship Sub-Licence, onshore Trinidad (the "Acquisition"), with an effective date of 1 December 2021.

The initial cash consideration for the Acquisition was US$3.5 million, subject to potential closing adjustments and a contingent consideration of up to US$0.5 million. The final cash consideration (inclusive of contingent consideration and the initial deposit payment of US$0.7 million) totalled US$3.85 million and has been fully funded from the Company's existing cash resources.

Acquisition Highlights
· Contiguous to Trinity's largest and most prolific onshore Block, WD-5/6, with 80% of the PS-4 block covered by the 3D seismic survey acquired in Q1 2021
· Immediate benefit from applying the Group's 3D seismic sequence stratigraphic framework across the new acreage offering a significant opportunity to add reserves and production on a meaningful scale
· A programme of workovers, reactivations, recompletions, and at least two new infill wells, expected to increase production from 65 bopd currently to over 200 bopd by the end of 2022
· Provides substantial synergies from a financial, operational and technical perspective
· Funded from existing cash resources and immediately accretive to operating and free cash flow

The increase in acreage and location of the Block (being contiguous to WD-5/6) will enable the Company to integrate the PS-4 area seamlessly into its ongoing subsurface evaluation process - offering the potential to high grade existing drilling candidates and identify new ones across the larger area.

The Company is focused on growing production and reserves, and the integration of PS-4 into the wider portfolio provides Trinity greater scope to do so. Following a full 3D seismic interpretation, and the re-mapping and integration of all historical wells and production data, the Company will update the market on reserves and forward plans for the Block.

Jeremy Bridglalsingh, Chief Executive Officer, commented :
"We are delighted to be in a position to complete, with an effective date of 1st December 2021, the acquisition of the PS-4 Block, which fits in our broader growth strategy, with the contiguous location meaning that our 3D seismic interpretation will have even greater benefit. Beyond the technical synergies, with our largest field WD-5/6 now able to act as an operational hub to the nearby WD-2 and PS-4 fields, we foresee meaningful operational efficiencies as well.

We have a portfolio of assets offering a number of opportunities to increase production and cash generation, while our commitment to partnerships to access new opportunities further augments our ambitious growth plans."

Angola >>  8/10/2022 - Afentra plc, an upstream oil and gas company listed on AIM and focused on acquiring production and development assets in Africa, is pleased to announc...
Norway >>  8/10/2022 - • The transaction consideration of US$68 million includes NOK 309 million (~US$33 million) in deferred tax assets which are recoverable for Lime Petro...

Oman >>  8/8/2022 - Maha Energy AB (publ) (“Maha” or the “Company”), through its wholly owned subsidiary Maha Energy (Oman) Ltd., has entered into an Agreement with Mafra...
United States >>  8/8/2022 - Cenovus Energy Inc. (CVE) has reached an agreement to purchase bp’s 50% interest in the bp-Husky Toledo Refinery in Ohio. Cenovus has owned the other ...

Brazil >>  8/5/2022 - Petrobras, following up on the release disclosed on 08/14/2020, informs that it has concluded today the sale of all its stakes in the onshore fields o...
Brazil >>  8/3/2022 - Petrobras, following up on the release disclosed on 01/29/2021, informs that yesterday it has finalized the sale of all its stakes in the producing fi...

Gulf Oil and Gas
Copyright © 2021 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.