Trinity Exploration & Pr... Share Discussion Threads

[f3rdinand] 30/8/2018 07:05

Extremely positive! I will be taking a position today!

[f3rdinand] 30/8/2018 07:04

Drilling commenced on six well Onshore campaign Trinity Exploration & Production plc (AIM: TRIN), the independent E&P company focused on Trinidad and Tobago, is pleased to announce that it has spudded the first well of a six infill well programme, onshore Trinidad. As previously announced, the preparation for infill drilling operations has been ongoing with Trinity's subsurface teams working up incremental locations for future drilling. This work facilitated an increase on onshore 2P reserves (+50% to 5.98 mmstb in 2017) and the commencement of infill drilling in H1 2018 with the completion of two new wells, on time and on budget. The additional six wells to the 2018 campaign brings the total to eight wells. Having an inventory of new wells in the hopper, and the US$20 million fundraising completed in July 2018, has enabled Trinity to hit the ground running with an accelerated and fully funded drilling campaign. The aim of the programme is to maintain double digit year-on-year production growth going forward. The turnaround time of under two months from receipt of funds to spudding the first well illustrates the preparatory work to date and the depth of technical, commercial and logistical experience within Trinity's team. The Company also notes the decision announced yesterday by the Petroleum Company of Trinidad and Tobago Limited ("Petrotrin") to discontinue refining operations. The Company expects that this decision will have no impact to the ongoing Sales Agreements with Petrotrin for Trinity's oil production. The Company will announce its interim results for the six-month period ended 30 June 2018 in September. This will provide further detail on production, operating margins, operating break-even, costs and profitability - highlighting the growing value of the Company's assets and continued strong financial performance in an environment of improving oil prices. Bruce A. I. Dingwall CBE, Executive Chairman of Trinity, commented: "We are delighted to have commenced these new drilling activities onshore Trinidad with the spudding of the latest well in our plan so soon after raising new equity capital and becoming debt free. We have established a stable and well-funded profitable production platform and are ideally positioned to continue growing production, cash flow and shareholder value with this accelerated infill drilling programme. With peer leading break-evens and plans to increase production we can grow profitability in the short-term whilst working up a further step-change from future developments both onshore and offshore in the medium to long term. The landscape is changing rapidly in Trinidad and we look forward to updating the market with further developments."

[spellbrook] 29/8/2018 20:51

Oil getting closer to $70

[mount teide] 29/8/2018 19:20

Brent up $1.22/1.5% today - now back above $77.50.

The rising oil price was driven largely by a statement from the head of the IEA that "Robust demand and production uncertainty in some oil-producing countries are expected to tighten the oil markets as we approach the end of the year"

The IEA head continues to believe that oil demand growth will continue to be very strong, and coupled with the collapse in Venezuela and what he called the “fragility of production” in countries in the Middle East, the oil markets are set for tightening toward the end of this year.

Outside of war-induced outages, Venezuela is suffering the worst loss of oil production in history amid an unprecedented economic collapse, years of mismanagement and underinvestment in the oil industry, an aggravating humanitarian crisis, and a leader who is hell-bent on clinging to power. Venezuela’s inflation will surge to one million percent by the end of this year as the country with the world’s biggest oil reserves remains stuck in a profound economic and social crisis, the International Monetary Fund predicts.

According to OPEC’s secondary sources, Venezuela’s oil production in July dropped to below the 1.3 million bpd mark at 1.278 million bpd; plunging 47,700 bpd from June. Some analysts expect Venezuela’s production to fall to below 1 million bpd by the end of this year.

U.S. sanctions on Iran’s oil exports are expected to take around 1 million bpd or possibly even more off the market in Q4, which would further tighten the oil market if demand growth keeps its pace.

[mount teide] 29/8/2018 17:25

India is set to overtake China as the top driver of global oil demand growth according to research carried out by Wood Mackenzie - CNBC today


'India is set to overtake China as the biggest source of growth for oil demand by 2024, according to a forecast announced Monday by research and consultancy group Wood Mackenzie.

The country's oil demand is set to increase by 3.5 billion barrels per day from 2017 to 2035, which will account for a third of global oil demand growth. India's expanding middle class will be a key factor, as well as its growing need for mobility, according to Wood Mackenzie.

On the other hand, China — currently the second-largest oil consumer in the world — may soon need less oil. In 2017, it overtook the U.S. as the biggest importer of crude oil, but it's set to see a decline in oil demand growth from 2024 to 2035, Wood Mackenzie Research Director Sushant Gupta told CNBC.

That's due to two trends: Alternative energy sources such as electricity and natural gas are displacing the need for gasoline and diesel. And, a more efficient freight system and truck fleet will also result in sluggish road diesel demand, Gupta said.

For India, as demand grows, an oil shortage is already imminent. The country is only expected to add 400,000 barrels per day in firm refinery capacity out to 2023 — paling in comparison to demand growth — warned Wood Mackenzie.

"We think the most likely situation is that India would need between (3.2 million and 4.7 million barrels per day) of new capacity out to 2035 to remain self-sufficient in transport fuels. So we are talking about a future capacity which is 1.7 to 2.0 times the current. This is clearly an uphill task, unless domestic refiners can commit to their planned capacity additions," Gupta said in a Wood Mackenzie release accompanying the India demand projection.

With India's refinery yields still highly tilted toward diesel, Wood Mackenzie added that India needs to start focusing on increasing gasoline. However, with a global surplus of gasoline expected in the long run, India could consider importing the fuel, the research firm suggested.

India's fate has long been tied to oil prices, as it is a net oil importer, and rising prices are set to hit its economy. As a result, its currency could continue weakening, its current account and trade deficits are set to widen further, and its growth could be affected.

In the long run, the country could choose to switch its passenger transport sector — cars, vans and utility vehicles — to run on electricity instead, suggested Gupta.'

[diseasex] 29/8/2018 17:03

exactly what i've fallem for. They did accelerate loan repayment even more though ;-) Nasty surprise and I don't trust this management anymore. I'm holding as no disaster happened yet but I feel like for the last 6 months I don't know what has happened in the company. Lot's of question marks.

[mount teide] 29/8/2018 15:54

di - for the record - at the 27p pre placing peak i was sitting on a circa 100% profit with my main holding and then elected to average up heavily just prior to the placing - following which i found myself immediately post the placing back to an overall neutral position - up modestly on my original holding and down circa 30% on the averaged up position.

That did not put me in a good mood - particularly after the management and many of its PI cheerleaders had banged on about the merits of the investment case, citing the accelerated loan repayments - suggesting by inference that a placing risk was low.

I continue to hold my original position but will review the situation again closer to year end - if i fail to see a substantial improvement in the communication and rate of progress with the production development drilling programme it will be to Jadestone Energy's (JSE) gain and TRIN's loss.

[spellbrook] 29/8/2018 15:48

hopefully attack $70 soon

[spellbrook] 29/8/2018 15:47

Oil Jumps On Bullish EIA Data
By Irina Slav - Aug 29, 2018, 9:44 AM CDT

[marvelman] 29/8/2018 15:29

That's the way to do it DX...your not on your own with that strategy...there are at least 2 of us..:-))

[diseasex] 29/8/2018 14:59

I think MT got burned here (just as I had) so can understand his frustration. I haven't sold yet - which is a good sign, and hoping this stock will climb. So hold, as long as it takes to get the cash back ++

[mount teide] 29/8/2018 13:54

mark - nobody is complaining about the quality of the assets the company has or the ability of the management to sweat the assets to create shareholder value in a rising oil price environment - some of us did very well investing in Venture Production, which incidentally, communicated very well with the market while i was shareholder.

Shareholders have every right to ask hard questions of the TRIN Board as to the level of market communication and progress made over the last 18 months - which i am probably far from alone in being moderately critical of.

Why has TXP and CERP given their shareholders the courtesy of informing them of the potential impact if any of the significant developments at Petrotrin, yet TRIN has failed to do so?

[diseasex] 29/8/2018 13:40

I remember I invested in PEL.LSE . these guys were paying themself 1.5m and company was at a loss. That was a sell. I sold at 4.3 and today it's 1.7 , up from 0.9.
Trin numbers are reasonable.

[spellbrook] 29/8/2018 13:35

Oil at $69

[mark10101] 29/8/2018 13:26

Ross best not engage MT. The guy supossidly owns more TRIN then many of us combined yet he runs the company down... Time will tell if his love for TXP will be rewarded.

[diseasex] 29/8/2018 13:16

OK invest in Musk - hes not getting any renumeration at all. jeez

[mount teide] 29/8/2018 13:04

Ross - no, you're wrong - two of those three are not even on the TXP BOARD!

[mount teide] 29/8/2018 13:01

dis - Asia Met (ARS) - a company i have been heavily invested for over two years has seen the management's performance at creating shareholding value and the new commodity cycle take the market cap from £5m to £80m since 2015/16, when the industrial metal, oil and shipping markets collectively bottomed after a near 8 year long downturn/recession phase.

Since the new management took over the running of ARS in 2015 the entire Board(including non execs) has not taken a cent in Remuneration, preferring to align themselves totally with their shareholders by taking their 'remuneration' in incentivised share options - many of which are still barely above water despite the share price going up more than ten fold, such are the stiff performance targets they set themselves.

Why year after year would they take all their 'remuneration' in share options some might ask? The better researched might suggest it could have something to do with the fact that the CEO turned small cap Oxiana Metals from a $3m market cap junior into a $6bn company during the 7 years of the recovery stage(2000 - 2007) of the last commodity cycle and has selected ARS to be his vehicle to ride the recovery stage of this new commodity cycle.


AIMHO/DYOR

[diseasex] 29/8/2018 12:25

how much would you ask for managing 60m company?

[mount teide] 29/8/2018 12:13

Ross - according to the Touchstone website and latest accounts the total basic salary of the Board of Directors (One Exec and 6 Non Execs) last year was US$330k.

While Trinity had US$470k for 2 execs and 4 non execs.

That differential would buy a helluva lot of shrimp, lobster and swordfish! - no wonder the CEO has now got more chins than a Chinese telephone directory.

[marvelman] 29/8/2018 12:07

Brilliant MT

[mount teide] 29/8/2018 11:55

Esmeralda - you know very well the hugely embittered liberal left establishment after putting the full weight of the State behind their remain campaign and then getting handed their backsides by 17.4 million voters in the largest democratic vote in UK political history could't stomach the result and, as Michael Portillo correctly predicted started plotting to overturn it the very next day while smiling at voters and telling them they "fully respect the result of the referendum".

As the distinguished financial historian Niall Ferguson recently remarked - the liberal left establishment and left wing politicians highly offensive personal comments like yours about the referendum winners is now all they have left to offer.

According to them we are now hearing the possibility that the Article 50 process may be extended. How is this possible when we are told by smug self serving Eurocrats the EU is a “system of rules” and legal notice has been served under the 'rules'?

There are, of course many who can demonstrate beyond all reasonable doubt that the EU is a “system of rules” in much the same way as the Sicilian Mafia is a “code of honour”; that it is observed more in the breach than the observance. But we are 'cynics' according to the unelected, unaccountable public sector multi millionaire EU Commissioners, most of whom have never done days work in the productive sector in there lives. The idea that the EU project is a system of rules is complete nonsense of course, since it does not stand up to the mildest of critical examination - it is and always has been a political project to subjugate 500 million people.

This letter to the Telegraph editor brilliantly and eloquently sums up the appalling state of 'representative' politics in the UK today, which people like you and the liberal left establishment should seriously reflect on.

'I cannot think of a time in modern recorded history, at least since the English civil war, during which the elected parliament was as unrepresentative of the majority of the electorate as now over such an important constitutional issue.

That is in itself a problem for democracy. When, however, many of the members of that parliament are openly defying the expressed wishes of that majority in a legal vote, ironically requested by that very same parliament, and at the same time encouraging those who were on the losing side of that vote to continue arguing the matter and demanding what would be effectively a rerun of the vote, then we are already in very dangerous constitutional territory.

Democracy, and with it a peaceful, settled society, rests on very flimsy foundations when there is no written constitution. It relies implicitly on the trust of the electorate that a majority vote will be respected and acted upon, that a majority vote in any election/referendum will be accepted by those who lost, but above all that parliament is the servant and not the master of the people and will do their bidding.

All the talk about MPs being representatives and not delegates, about a referendum being advisory and about any further vote simply being on an acceptance or rejection of withdrawal terms and not a rerun of the vote to leave itself, is just sophistry; either a vote is respected in its entirety or democracy dies.

In that event then all bets must be off as to how the governed will react. It is to be hoped that sufficient sensible MPs can understand that and accept, whatever their personal views on this matter, that they have no democratic alternative to delivering what the majority have clearly demanded. Should they refuse, then the flimsy foundations will give way, the system under which we are governed will be irretrievably broken and we are all in for a potentially very unpleasant ride.'

[spellbrook] 29/8/2018 11:33

COLUMBUS ENERGY RESOURCES PLC

("Columbus" or the "Company")

Petrotrin Restructuring

Columbus, the oil and gas producer and explorer focused on onshore Trinidad with the ambition to grow in South America, provides the following update about the restructuring of the Petroleum Company of Trinidad and Tobago Limited ("Petrotrin") which was announced on 28 August 2018, which Columbus believes will have no negative impact on its Goudron operations.

The planned restructuring of Petrotrin's operations include the announced future closure of their oil-refinery operations at Point-a-Pierre and a restructuring of their exploration and production business and it is planned that the transition to this new model will begin in October 2018. The restructuring plan is geared towards curtailing losses at the State-owned oil company and steering it on a path towards sustainable profitability. As Petrotrin exits the oil refining business, it intends to re-design its exploration and production operations. It is proposed that refining of oil will be phased out as the re-structuring plan is rolled out, with all of the Company's oil eventually to be exported for processing at other international facilities.

At present Columbus sells oil produced from its Goudron operations directly to Petrotrin "at the Goudron site gate" via marketing arrangements associated with the Incremental Production Service Contract between Columbus and Petrotrin. Columbus believes that the proposed changes will have no impact on its Goudron operations as the marketing arrangements will not change and the Company does not interact directly with the refinery. Columbus currently receives an oil price, as calculated by Petrotrin on a monthly basis, after taking account of various factors, including refining and other costs, with the oil price received by Columbus from Petrotrin tending to range at a discount to WTI (West Texas Intermediate) of between 4-6%. The Company will continue to sell production to Petrotrin under the existing contracts, however, rather than selling to the refinery, Petrotrin will export the product at world pricing. This could possibly benefit Columbus in the future as the Company does not currently receive any premium to the oil price it receives from Petrotrin, despite the fact Goudron oil has an API of approximately 38 API, which places it at a higher value than average Trinidad crude oil.

Columbus recognizes that Petrotrin has to be structured for profitability and the losses currently being seen at the refinery are un-sustainable into the future. The Company believes that the decisions announced yesterday will benefit Trinidad and Tobago in the long term, whilst recognizing that this will cause difficulties for many Petrotrin employees in the short-medium term. It is in everyone's interests that Trinidad has a strong and viable oil and gas industry which will enhance the living standards of the people of Trinidad and Tobago.

Petrotrin has also indicated that they will be meeting with all stakeholders before the transition commences in October and Columbus looks forward to taking an active part in such meetings.

Leo Koot, Executive Chairman of Columbus, commented:

"Yesterday's announcement is a big step by Petrotrin to create a strong and economically viable exploration and production business to the benefit of the people of Trinidad and Tobago. We applaud their commercial strategy and are satisfied that the proposed closure of the Point-a-Pierre refinery will have no negative impact on our Goudron operations and potentially benefit Columbus into the future, if we are able to obtain a higher oil price due to the high quality of our Goudron oil. We have regular meetings with senior Petrotrin representatives and intend to continue to work closely with Petrotrin in the months ahead as they undertake their changes."