Trinity Exploration & Pr... Share Discussion Threads

[diseasex] 26/6/2018 17:19

as in free float or what?

[mount teide] 26/6/2018 16:18

Venezuelan oil industry meltdown accelerates - the Nation with the World's largest oil reserves could be a net importer by 2019!

Venezuela Won’t Have Enough Oil To Export By 2019 - OilPrice.com

Adrian Lara, Oil & Gas Analyst at GlobalData stated:

“Crude oil production in Venezuela is practically falling at an average of 10% every quarter and has been since mid-2017. A scenario with oil production in the country losing at least another 500,000 barrels per day by the end of the year is not unrealistic. Having full additional sanctions imposed would certainly send a strong geopolitical message from the U.S. at the risk of generating more instability in the world supply markets.”

GlobalData also forecast that Venezuelan crude oil production would fall to around one million barrels per day by the end of 2018. This is a steep decline from the three million barrels per day that Venezuela produced in 2011.

Platts reported this week that Venezuela has already warned eight international customers that it wouldn’t be able to meet its crude oil commitments to them in June. Venezuela’s state oil company PDVSA is contractually obligated to supply 1.495 million barrels per day to those customers in June, but only has 694,000 barrels per day available for export.

If the GlobalData forecast is correct, then the temporary interruption of Venezuela’s exports may be permanent, as they will be plunging toward zero by the end of the year.'

[mustbefunny] 26/6/2018 13:38

70% of the director's LTIP share grant vests in full at 35p share price. They also vest pro-rata at any price between 5p and 35p ie for 15p they would only get a third of the full entitlement. As far as I can see they don't vest until July 2020 at the earliest.

The remaining 30% is based on repayment of government debt and CLN's. I'm not clear on whether or not this portion is affected by the placing.

[archie61] 26/6/2018 13:02

did they not say from the government? i'm expecting Perenco to be involved in the TGAL field development,Bruce mentioned them a few times.

[marvelman] 26/6/2018 13:01

Onwards then Ross and this time without the baggage

[spellbrook] 26/6/2018 12:38

Any thoughts on the below, who would they be acquiring from ?

The Company is considering acquiring existing 3D seismic data, which the Company believes will enable a more efficient high-grading of locations and potentially allow opportunities to use horizontal drilling techniques which have the ability to deliver initial production rates of 2-6x levels seen in traditional vertical wells, which could result in significantly enhanced project economics.

[whiskeyinthejar] 26/6/2018 12:18

I don't like the placing either. I can only trust that this cash injection will accelerate the business growth. Oil extracted is worth 100x as much as oil in the ground. Organic growth wouldve been preferable to me but slower.

However, Im not going to stress too much over how much money others are making-including directors or former debt holders.

Im only here to make money- I still believe Trinity is going to make me money at relatively low risk. IMO share price will soon be back into 20s, and with TGAL we have credible route to 11,500 bopd target (page 31 presentation).

[phowdo] 26/6/2018 11:41

They'll no doubt be "resolving" to amend the terms of the incentive plan just like the CLN holders did with their contract.

[jbarcroftr] 26/6/2018 11:36

I seem to recall that the directors share options kicked in at 35 p
Is that still the case?

[archie61] 26/6/2018 11:22

Was Angus Winther and David Segel the two largest CLN holders? in there defence they did put the money in to save the business initialy,and from what i can see have kept there shares and now also adding,they look like there in for the long haul which is a good thing.

[esmerelda] 26/6/2018 11:15

This is the background to the CLNs. The text is taken from yesterday's RNS which I have edited for brevity but not amended the words.
------
The holders of the Loan Notes resolved on 15 June 2018 that the terms attaching to the Loan Notes be amended such that the Loan Notes shall be convertible on the occurrence of the Placing at a conversion price equal to the Issue Price.

The holders of Loan Notes ….. subscribe for approximately 32,715,504 New Ordinary Shares pursuant to the Subscription (the "Conversion"). Immediately following Admission, the Company anticipates having US$0.9 million of Loan Notes outstanding including accrued interest.

Certain of the Converting Loan Note Holders, being the David and Christina Segel Living Trust and Angus Winther, are related parties under the AIM Rules ….

Certain Directors and their connected parties have agreed to participate in the Subscription to raise gross proceeds of approximately US$2.9 million (GBP2.2 million). In particular (i) Bruce Dingwall, Jeremy Bridglalsingh and James Menzies have agreed to participate in the Subscription by conditionally subscribing for new Ordinary Shares in cash …. and (ii) Angus Winther has agreed to participate in the Subscription pursuant to the Conversion …

The Loan Notes held by Angus Winther are being converted at the Issue Price per new Ordinary Share pursuant to the Conversion. The David and Christina Segel Living Trust (to which David Segel, a director of the Company, is connected) is also participating in the Subscription pursuant to the Conversion of the Loan Notes held by it at the Issue Price per new Ordinary Share.
-----
Now you see the CLN holders knew all about the coming placing a few days BEFORE the AGM, indeed one of the was a Direcor of the company. I am not accusing or suggesting they did anything wrong but information leaks out, etc, etc.

I note the first paragraph which I read as saying the CLNs effectively converted hence no bonus to the Directors for avoiding that situation.

[phowdo] 26/6/2018 10:59

Wouldnt surprise me if the CLN holders were caught short hedging their exposure and this placing/conversion price gets them (and the brokers who facilitated the hedging) out of a pickle.

[mount teide] 26/6/2018 10:51

marvelmnan - 'they were looking after their own interests, not ours.'

Yesterday's announcement points very strongly to that view - i will not be averaging up any further here.

I can fully understand and support the management's motivation to want to take advantage of the current strong POO( and 2019 forecast), to accelerate their production development and exploration programme but, find it difficult to accept it requires such a large cash raising at a circa 45% discount to the recent high.

Fellow T&T peer TXP has managed to dramatically ramp up its production and exploration drilling programme through modest cash raising at a circa 10%-15% discount and, by the co-operation of their lenders (through a extremely modest one-off payment), to push back the commencement of loan capital payments into 2020, to free up an additional $8.2m of cash to drill 4 ultra high impact, low cost, "low risk" exploration wells in 2019, in addition to the 20 development wells scheduled for 2019, most of which like this years 10 well programme they expect to finance from cash flow.

In a strong and rising oil price and low T&T drilling cost environment(down close to 50% since 2014 according to TXP), if like TRIN and TXP, you're already generating much more annual cash flow than the outstanding debt you owe - surely it makes far more commercial sense to use the majority of that strong cash flow generation to accelerate production development ? As time like the commodity cycle waits for no man or T&T O&G company!

[melody9999] 26/6/2018 10:46

Sadly I chose a bad day to be away from my desk yesterday. I share the frustrations of other PIs in the deep discount to the share price of the fundraise.

The wider question now is whether I still have the same level of trust in the management team.

Marvelman - I note your post above - looking at my research, the BOD previously owned 70M shares. (Bruce had 12.2M). They are subscribing to $500K more ie c 2.5M shares at 15p a pop. So they are suffering the same share price fall and dilution as we are us on their (larger) existing holdings whilst only acquiring a relatively smaller amount at 15p. So I'm not sure I agree with you that our BOD are looking purely after their own interests.

I realise, as a newer holder to TRIN, that I did not fuller understand the issue of the CLNs. This seems to have influenced the BOD decision on the level of funding, and indeed the price set. I would be grateful if other more knowledgeable posters could explain the CLN issue to me in more detail so I can understand the decision the BOD faced and their rationale.

I want to be comfortable that despite being underwater on my investment at present, that our BOD have 'cleared the pitch' in the best way possible to take TRIN to the next level - and that my investment will grow with the business.

[marvelman] 26/6/2018 09:58

Indeed ross, but they were looking after their own interests, not ours.

[wwick] 26/6/2018 09:00

Watch the progression of new wells in Q3 & Q4 and the plan for more of the same thereafter. As these results come out the investment case cannot be denied.

[wwick] 26/6/2018 08:08

New acreage is on the cards & we have a war chest. I genuinely believe 30 is now closer

[wwick] 26/6/2018 08:05

& when £15M is put to use the 1p between 15 - 16 will be irrelevant