Trinity Exploration & Pr... Share Discussion Threads

[lw425] 19/7/2018 14:16

Does it really cost over 1 million dollars to drill a well which yields say 60 dribbles a day?

60 dribbles a day * say $30 profit a barrel * 365 days - so yearly profit say $650k.

So it takes two years for payback? Is that broadly speaking reasonably accurate??

There are surely far better plays out there?


GO!

[mark10101] 19/7/2018 12:53

Dunder, this is why I still think things have been done as fairly as possible in these sucumstances. The bonus has been diluted and all major shareholders have had their % holdings reduced in this process.

I do think it will be good form to make adjustments to the bonus structure to reflect new circumstances and aspirations though.

[dunderheed] 19/7/2018 12:28

Surely all the additional share in company now has somewhat diluted the impact of their options?

[esmerelda] 19/7/2018 12:24

I agree with you wwick. I certainly consider that the CLNs have been converted into equity. Whilst the original conversion price was 8p they were told that they could convert in full at 15p otherwise they would be paid off. I think over 90% did so IMHO the BoD are only entitled to 10% of that part of their incentive (or zero depending on how that was written in their incentive plan).

[mark10101] 19/7/2018 12:22

WWICK, I agree it is not in the spirit of the incentive, I would hope that the management incentives are now adjusted after this placing which is a game changer for the company. My view was always that 35p was a very unambitious target, with dilution it is a little more ambitious.... I would much prefer new targets to be set on scaled and ambitious share prices say up to 50p for June 2020 and production level targets.

IMHO this is a BOD trying there best to make decisions in the interest of the company that faces so many variable, it is a tough task. I am personally very happy with the position the NEW TRIN is in. Lets see how the dust settles and what actions they take regarding these now defuncted incentives.

[dunderheed] 19/7/2018 12:16

Best not to encourage them to post.
They've moved on - leave it at that?

[husted] 19/7/2018 12:14

More lies and snide remarks. The onshore oil fields are not "abandoned" or "leftovers". They hold millions of barrels of P2 reserves so hardly running "dry."

All oil companies have to drill wells, and it is a good thing when they already know the oil is there and don't have to explore for oil.

Good luck finding an oil company that can keep increasing production year after year by over 10% without drilling wells.

[wwick] 19/7/2018 11:56

Diseased, CLN & DEBT are linked to the BOD incentive plan. They diluted shareholders and this enabled incentive targets to be hit. This is not in the spirit of the incentive targets. See my earlier post "definition of audacity". The BOD could do the right thing and forego this element of their incentive package. In addition, given they disproportionally participated in the recent offer relative to other shareholders, this is the morally right thing to do.

[dunderheed] 19/7/2018 11:56

Husted?! Hest of luck buddy!
Are you 'going over' to TXP?

[acsatix] 19/7/2018 11:49

HUSTED:


they have to increase wells to increase production 10% every year as this is not a real exploration company, it is scavenging oil in abandoned oilfields and the leftovers run out dry quite quickly so they have to keep drilling like mad... anyhow you are right, I cannot be a shareholder and I am not as of today. this is a dog.

so long.

[spellbrook] 19/7/2018 11:03

No debt and making money will prevail...

[diseasex] 19/7/2018 10:08

So wheres info about paying off CLN and govt?

[husted] 19/7/2018 09:27

"u keep drilling same number of wells from cash flow per yr it means production is stable and not growing"

This is nonsense. The number of wells you can afford to drill goes up as production goes up. But if you don't increase the number of wells drilled, it does not mean production isn't going up.

You try to twist everything into a negative. You have nothing positive to say about Trinity. If you were a real shareholder, you may have some negative things to say, but nobody holds shares in a company they can only make snide remarks about.

[acsatix] 19/7/2018 08:23

If u keep drilling same number of wells from cash flow per yr it means production is stable and not growing. Otherwise wells per year would grow also... anyhow u keep believing what u want... in same circular read about the story they wanted to let us bonobos access the fundraiser at same conditions as the private placement. Yeah right.

[husted] 19/7/2018 07:32

No 3000 is just the baseline. Its where we start from at the end of H1.

This is important, so Ive lifted this text from the circular:

"The Board believes that Trinity now has the opportunity to MATERIALLY GROW PRODUCTION and cash flow from its onshore portfolio and the Fundraising is key to unlocking that additional, profitable growth in the short-term."


"Funds are being raised to enable the Company to target drilling between 8-10 new wells per annum on an ONGOING BASIS in order to GROW and maintain production FROM an initial targeted base of 3,000 BOPD at a rate IN EXCESS OF 10 PER CENT. per annum in the short- and medium-term."





The current situation is Trinity can fund some wells from cashflow.

But the placing allows them to drill continously from cashflow, because when they finish spending the placing money in 18 months time, they will have sufficient cashflow to keep on drilling 8-10 wells per year.

[acsatix] 19/7/2018 06:00

I did... and it says it is stabilising production around 3000 bopd over next five years... hardly exciting.

[husted] 18/7/2018 23:20

"nowhere I read they will use for aggressive drilling."

You didn't read the presentation then.

[acsatix] 18/7/2018 21:55

No folks, this share has been consistently above 15 since October last year except brief Periods.

Anyhow nowhere I read they will use for aggressive drilling. And if so it was,the pricing should have been consistent with improving prospects and not with a backward looking view... 20 would have have been reasonable and limit dilution. But see the clear intent here was to reduce some shareholders.

Anyhow indeed we made our points... time to move on and act accordingly.

[husted] 18/7/2018 21:26

I can see Dunderheeds view. Up until March, 15p was a fairly typical share price and that's only 4 months ago.

If they had placed earlier in year, the placing price would've been even cheaper. Maybe 12p or 10p.

So I think they maybe could've placed a bit higher at this stage, like 18p, but not much higher.

If they had waited even longer, maybe share price would've continued to rise or maybe it wouldn't.

But there's a money cost to delaying and getting production rising fast sooner rather than later, will do a lot for the share price.

Its just all been a bit painful, especially if you've mainly bought since March. But hopefully it will be worth it.

[dunderheed] 18/7/2018 21:05

Got to admit I thought it was a 'nice' gesture and unfortunately seems to have back fired which is a shame for current and new holders plus something I personally did not foresee!!

[esmerelda] 18/7/2018 20:56

OK, that's a view with some merit. I don't think they should have offered shares to the likes of us when this was never intended to be a rights issue (with all the costs that incurs). We would still have complained (and rightly so!) about "mate's rates" but it would be forgotten in a month if oil prices has kept rising. I can't run an oil business but I can see a PR disaster before it happens and this was going to be one.

[dunderheed] 18/7/2018 20:29

If you look at the 6, 12 or 24 month share prices the discount was not as large as people imagine.
You can't base a fund raising on the last two weeks good share price runs, come on guys, if we are going to quote figures as justifications for collective anger, make sure they reflect reality?
Best of luck all.

[acsatix] 18/7/2018 20:15

The structure of the thing was the problem not the broker... the broker given the opportunity will screw its customers no problem. Companies avoid these unfortunate situations by means of a very simple and fair mechanism called rights issue or private placement close to market price . These folks did a private placement heavily discounted and then used PIs to pay for the fees... indecent.

[esmerelda] 18/7/2018 19:16

I don't understand your comment 'this is not investable by the PI". It was always going to be massively oversubscribed so you would have expected to get a fraction of what you applied for and then used the returned money to buy in the market if you didn't get enough. NOW I appreciate your comment about the registrar hanging onto the money for another five days but iWeb didn't do that. By last Monday the 28% I had been allocated were in my account along with the balance of my money. I find it "interesting" when I read of other brokers being slow in getting their allocation or returning clients money to their accounts.

[pinkfoot2] 18/7/2018 17:51

Cannot believe there are some on here blaming settlement disasters on the company.Move on and get behind the company