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Trinity Exploration Increases Production, Revenue But Swings To Loss(Alliance News Via Acquire Media NewsEdge) LONDON (Alliance News) - Trinity Exploration & Production PLC Tuesday said it swung to a pretax loss, despite reporting increased production and revenues from its sites in Trinidad. Trinity reported a pretax loss of USD15.9 million in the six months ended June 30, versus a USD60.8 million profit in the firs half of 2013. In the first half of 2013, the company reported USD52.3 million income through exceptional items. The company also saw increased operating expenses of USD58.5 million, up from USD44 million. In addition its El Dorado-1 exploration well in Trinidad was written off to the full amount of USD17.5 million. The company increased revenue to USD62.3 million in the first half from USD54.4 million in the comparable period in 2013. Production increased to an average of 3,795 barrels of oil equivalent per day, from 3,524 barrels of oil equivalent per day in the first half of 2013. Trinity operates twelve licences in Trinidad & Tobago with assets onshore and offshore the east and west coast. Trinity said "55% [of its oil] sold onshore, 15% attributable to the west coast and 30% from the east coast." It also enjoyed a higher average price of USD93 a barrel in the first-half from USD91.2 in the same period in 2013. "Our base production remains strong and the company is positioned for growth," said Chief Executive Joel Pemberton. "Trinity is progressing industry-sourced solutions to strengthen its balance sheet and ensure the business is adequately funded to develop and grow the existing portfolio," he added. It reported a cash balance of USD9.6 million at the end of June 30. Trinity plans to improve efficiency, reduce operating costs, and assess enhanced oil recovery opportunities across its sites in Trinidad, it said. "Trinity's portfolio has been enhanced with the acquisition of Blocks 1a and 1b [also in Trinidad], which adds a high-quality greenfield gas development project," said Pemberton. Trinity acquired the two blocks in 2013. The company said a field development plan is underway for block 1a and 1b, alongside ongoing discussions with potential buyers of gas from the two blocks. "This acquisition diversifies our asset portfolio, future revenue stream and is a transformational acquisition for Trinity which is in line with our strategy," added Pemberton. "Trinity has delivered strategic progress in the first half of 2014," he added. In a separate statement, Trinity said Craig McCallum has been appointed chief operating officer following Ian MacDonald's decision to retire. McCallum is due to transfer to the role "following a short transition period". "I am delighted to welcome Craig to the role of chief operating officer. His knowledge of Trinidad and Tobago, operational and commercial expertise, and in particular his track record of delivering greenfield development projects, are an ideal fit for Trinity at this stage in our development," said Chief Executive Pemberton. Trinity shares were down 1.7% to 79.10 pence per share Tuesday morning. Copyright 2014 Alliance News Limited. All Rights Reserved. |