Trinity Exploration & Pr... Share Discussion Threads

[andrewbyles] 24/5/2024 09:18

Since there are no takeover resolutions proposed for the AGM, I go back to suspecting that Trinity will hold a general meeting on short notice to vote them through.

It’s a small point, but I find it outrageous that even in this morning’s RNS, Trinity continues to publish its “Trinity's portfolio includes current production, significant near-term production growth opportunities from low-risk developments and multiple exploration prospects with the potential to deliver meaningful reserves/resources growth” nonsense.

Still, the future is brighter. Touchstone has enormous potential of its own, has done a great job and is doing a great job developing new assets, and the takeover will result in significant cost savings that can be poured into greater investment. The “I think it’s all terrible but I’m waiting for the share price to go up” attitude makes no sense to me, but since I think it’s a good deal I do expect the share price to increase and I’m hopeful that my massive Trinity losses will be reversed.

[che7win] 24/5/2024 09:03

TXP have moved production from 2000 boepd to 7500 currently and 14,500 by year end. I don't think that's a failure, it's a fantastic success.Dont blame TXP management for drill bit results, (last three this year are storming results), blame them for expectations not being communicated honestly if you have to.I don't think TRIN have performed, sounds like Jacobin wasn't set up for sucess, it's higher risk than was envisaged. The upside is there going forwards, otherwise I wouldn't be here. If you were to set emotion aside and actually look at results... Cascadura throwing off 20m dollars in little over 6 months from 1.5 working wells, then there is good upside to be had with patience. I know TRIN have the same upside if execution is managed better with the wall of cash available going forwards.

[nafafa] 24/5/2024 08:47

Trinity for years has been blessed with stable low-cost production the financial returns of which have been squandered, when they should have been shared and so provided a healthy return to shareholders. What an absolute disgrace, shame on management. Shareholders themselves share a degree of responsibility, particularly those with large holdings, who have failed to recognise these management failings, take action and give direction. As a result those shareholders will now be losing big time. I guess it is easy to be seduced by the arguments of jam tomorrow, but tomorrow never comes. I do not believe our fortunes will be much better under TXP, where there seems to be the similar miss alignment between management and shareholder interest. You only need to look at their bulletin boards to recognise a fairly familiar story. As I have said previously, I will sell down what is left of my holding on any short term share price rises. A painful and expensive lesson learned. Shares acquired and held in treasury under the ill-conceived Trinity of buyback scheme should now be sold and the proceeds distributed back to shareholders. Fat chance of this featuring as an AGM motion.

[che7win] 24/5/2024 08:26

TRIN management are as atrocious as TXP management at shareholder communication.

You would think they would have mentioned the voting date for the takeover, maybe they don't know…even worse

[sleepy] 24/5/2024 08:05

AGM on Monday 24 June 2024 at 11.00 in London

[sirmark] 24/5/2024 07:58

Very Something must be going on in the back ground Are they awaiting TT approval first ?

[che7win] 24/5/2024 07:43

No mention of takeover in AGM documents, strange?

[che7win] 24/5/2024 07:32

TXPs recent problems.... Have resulted in 20m dollar revenues from one and a half wells in a little over 6 months.I think the perception was higher by shareholders, but this is a good result, and two more similar or better performing wells coming online in the coming months.

[aqc888] 23/5/2024 23:27

I fear employees will suffer more from managements total incomprehensible failures than shareholders. This should bring total disgrace to the board for failing employees and shareholders simultaneously.

The geology of Trinidad does seem to be a problem though given trinity’s and txps recent problems. The combined company will have more resources to throw at drilling. However I’m suspicious how much extra success this will bring.

A good dose of director buying would quell shareholders misgivings somewhat.

[nocents] 23/5/2024 22:13

Well said Mr. Bytes. I hope they get to read it. It should be forwarded to them.
Utter disgrace.
If you are willing to request that return to shareholders, I will support you fully, and I hope everyone else too.

[andrewbyles] 23/5/2024 20:22

Management has to take the blame.

Nothing is guaranteed with energy exploration, but it’s important to remember that Jacobin was part of a low risk drilling campaign that was supposed to involve four conventional wells, a horizontal well and a deep well, and which was about 3 years in the planning. They gave up on the fourth conventional well after the first three failed to deliver, they abandoned the horizontal well after acquiring the drilling parts, and they went 2.5 times over budget on Jacobin and have written off the full cost even though we were told in December that it would eventually pay for itself.

They’ve taken on finance directors, chief operating officers and new surface managers only to realise that they don’t have the funds to develop the company’s assets. Having bought back $2.1 million of shares, starting at 120p in September 2022 (when “The Board of Trinity considers the Company's current market capitalisation does not reflect an appropriate valuation for the Company. In addition to its commitment to operational delivery, as announced in the Interim Results released earlier today, it is the Company's intention to implement a new Capital Allocation Policy which is likely to include the payment of a regular dividend and a share buy-back programme. This modest initial share buyback programme confirms that intent to further deliver value to the Company's shareholders”), they’ve sold the company for less than half that.

Rather than apologise for destroying so much shareholder value, our Chairman instead criticises shareholders posting on bulletin boards (whilst many individual posts are worthy of criticism, the criticism is fuelled by the company’s repeated failure to do what it said would and so its wholly inappropriate for directors to criticise the critics).

Their redemption is that the Touchstone deal should work out for shareholders. Nevertheless, they’ve been paid a great deal of money for failing to deliver and the free shares (free for them, they cost shareholder about $500,000) in the employee trust are undeserved. They should be returned to shareholders either by distribution or cancellation and the payment of a dividend (neither of which wouldn’t upset the deal with Touchstone as the cost of the acquisition would be unchanged).

[aqc888] 23/5/2024 19:13

I’m beginning to wonder how much of our losses in the past year are to blame on below average management, and how much could be blamed on the never ending geological challenges Trinidad seems to constantly throw at oil companies. Was Jacobin and the rapidly depleting gas fields of txp bad luck or will there be an ongoing problems? The share price seems to suggest the future fortunes will continue to be blighted by problems. Such views can rapidly turn from excessive pessimism to excessive optimism depending upon the most recent news flow however.

[andrewbyles] 23/5/2024 18:13

Trinity’s website has been amended this afternoon to include a heading for 2024 shareholder notices, but no AGM notice has yet appeared. It looks as though it may be imminent though. See (you have to scroll past the financial reports).

[andrewbyles] 23/5/2024 16:58

If the 448,431 share held in Trinity’s employee share trust were transferred to shareholders, we’d get extra shares equivalent to 60% of the dividend we were supposed to receive (assuming the takeover price of 61p).

I doubt it’s possible, but reading through the accounts there should be no share bonuses for 2023 (the 448,431 shares were transferred into the trust last September and came from the bought back shares held in the treasury and so cost us about $0.5 million).

[strathroyal] 23/5/2024 16:17

I wonder if we would have got such an honest assessment on financing Galeota and costs associated with Jacobin if the TXP bid wasn't on the table. The commentary reads very poorly on senior management and I wonder if the large shareholders were aware of these aspects.

[sleepy] 23/5/2024 13:23

107 administrative staff - really? Do they all turn up for work? What do they do?

[andrewbyles] 23/5/2024 12:51

Since at least 2016, Trinity has ended its RNSs with, “Trinity's portfolio includes current production, significant near-term production growth opportunities from low-risk developments and multiple exploration prospects with the potential to deliver meaningful reserves/resources growth.”

That sentence still appears on the front page of the company’s website.

It’s incredibly disappointing to read in this morning’s accounts that, “It became clear during 2023 that the Group would require new capital to fund its portfolio of development opportunities.”;

That’s all the more so considering the $2.1 million wasted on share buybacks and the $240,000 paid out in dividends.

No explanation is provided as to why Jacobin has come in almost two and a half times over budget (I was previously told that $2 million was disputed and that I shouldn’t assume it would be payable, but it looks as though most of that has now been agreed and there’s a provision for the rest).

Opening the accounts with the words, “2023 was an important year for Trinity with key developments in our ambitious growth programme being progressed“ is an offensive misrepresentation of what’s happened. 2023 was a calamitous year in which shareholders lost a significant portion of their investment.

Still, the directors have done the right thing in selling to Touchstone. Note that: (i) directors’ and senior management salaries were $1,093,000 in 2023; (ii) Trinity employed 107 administrative staff (compared with 170 operational staff); and that G&A costs were $7.37 million. Those costs are going to be massively reduced following the takeover, and there may be some saving on the $22.4 million production costs. Those savings will help fund development and enable the larger group to give up part of Trintes production as part of an East Coast farm down without losing the ability to generate cash.

[nocents] 23/5/2024 12:03

No new info in Final Results just out.

[andrewbyles] 22/5/2024 13:02

Looking at Trinity’s articles (which are available on the Companies House website), in order to hold a general meeting at short notice they need 95% of shareholders to vote in favour (which might be risky). Otherwise, a general meeting has to be held on 14 days’ notice and an AGM on 21 days’ notice.

Perhaps they’ll do what needs to be done at the AGM. It’s the cost effective way and it’s not as though the government will be ready to approve everything on June 1st.

I still try to buy Norcros products Sleepy and it’s a shame they couldn’t sort out Johnson Tiles (which I, of course, have on my kitchen and bathroom walls).

[sleepy] 22/5/2024 12:24

Andrew - with great respect (and I mean that — I regarded your Norcros posts as by far the best on their board) I stand by my statement on the shareholder meetings

[andrewbyles] 22/5/2024 12:15

Trinidad would be very happy if it were producing 100,000bopd, but in fact it’s producing just 46,600bopd (according to the most recent figures - see ). 15 years ago it was 110,000bopd.

There’s still time for Trinity to hold a GM this month (the usual time rules can be dispensed with if shareholders vote to do so). Otherwise, the motions can be voted on at the AGM due in June.

We should know more in the next few days as the final results are due before the end of the month and possibly this week.

[che7win] 22/5/2024 09:49

Also, plenty of news events could be on the upside, market has been overly pessimistic and fed on itself recently.Example, US gas prices up 33% in past month.Companies in Trinidad negated gas prices at prices much higher than what TXP gets.Our gas prices for TXP go up 2% per year with a renegotiation after 5 years.But other companies negotiated higher prices, we might have a strong case at year end when production jumps again.Maybe can happen at some stage.Plenty of upside triggers

[nafafa] 22/5/2024 09:47

And that is why my view they should be looking to exploit base production over the next few years, cut back all overhead and pay owners a decent dividend. I do not believe we will fare any better under TXP, post merger. When we are fortunate enough to see TXP peak at 60p, i will take that as an opportunity to get out.

[sleepy] 22/5/2024 09:45

Doesn’t look like the shareholder meetings to approve deal will be held this month