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.
· 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."