Trinity Exploration & Production plc, the independent E&P company focused on Trinidad and Tobago, announces that drilling operations have commenced for the first well of its 2022 six well programme.
As previously outlined, the fully-funded drilling programme, which includes conventional infill wells, a horizontal well and a deeper appraisal well, is targeting an aggregate 450 - 1,100mbbls of reserves at a cost of US$14m - US$17m. These are significantly higher volumes per dollar of capital invested, that in a success case, would generate materially increased cash returns compared with previous drilling programmes.
Management believes that the potential returns from the proposed horizontal and deeper appraisal wells could underpin a material increase in production rates and potentially unlock previously untapped deeper pools of hydrocarbons. If successful, the horizontal well could yield production rates and returns c.3x those achievable from conventional infill wells, with the wider programme also benefiting from the mapping and integration of the 3D seismic acquired in 2020, enabling a more targeted and de-risked approach to the Company's drilling activities.
Overall, management is confident the Company can support a multi-year onshore drilling programme from the prospects and leads identified from the evaluation of the 3D seismic. The 3D seismic interpretation has, to date, identified a "hopper" of c.40 infill opportunities, which includes c.35 conventional wells and c.5 high angle/horizontal wells. The successful drilling of the deeper appraisal prospect would add more highly attractive prospects to the hopper, giving greater line of sight on the Company's ability to deliver on its stated ambition to double production by 2024.
While the Company has a firm timetable in place, inclement weather conditions could have an impact on workflow. Noting the current orange-level tropical storm warning in Trinidad, management will move to ensure the health and safety of its workforce and contractors - and if necessary may opt to briefly pause drilling operations.
Jeremy Bridglalsingh, Chief Executive Officer commented: "We are delighted to have recommenced our drilling activities. We have a significantly improved our understanding of our acreage through the 3D data acquired, underpinning our confidence in the current programme while also positioning the Company to take advantage of future opportunities. We have set ambitious drilling targets as we focus on a step change in production, which could be further augmented by potential developments at our Trintes, Galeota and Brighton assets."