Company Announcements

This announcement contains inside information as stipulated under the UK version of the Market Abuse Regulation No 596/2014 which is part of English Law by virtue of the European (Withdrawal) Act 2018, as amended.  On publication of this announcement via a Regulatory Information Service, this information is considered to be in the public domain.

18 December 2023

Trinity Exploration & Production plc

("Trinity" or "the Group" or "the Company")

Jacobin Update

Trinity Exploration & Production plc (AIM: TRIN), the independent E&P company focused on Trinidad and Tobago, today provides an update on operations at its Jacobin oil discovery.

Trinity safely perforated the two Lower Cruse 1 zones on 28 November 2023. Initially the well flowed clean black oil with a very high Tubing Head Pressure (THP) of around 2,500psi on a very small 12/64^th inch choke. The well was also flowing considerable volumes of gas, which, when mixed with oil and water, produced a viscous emulsion at surface.

The well flowrate was initially unstable, flowing at a rate of between 80 to 160bpd of fluids including varying volumes of water and an unquantified rate of gas. The emulsion issue was managed by injection of speciality chemicals at the wellhead and on 10 December 2023 the well was diverted into a separator to allow the flow rates, including the gas rate, to be more accurately measured. The oil is of good quality with API density measured at 31.7 degrees at 60°F. 

In recent days the flow rate from the well has begun to decline and given that the presence of gas and water was not anticipated from the original well log interpretation and so Trinity is embarking on a series of data gathering exercises, starting with a pressure gradient survey in the next week, potentially followed by a Production Logging Tool ("PLT") run that will help determine how best to optimise the oil production rate.

The initial results confirm the presence of oil in the Lower Cruse 1 formations and given the presence of confirmed oil in the Lower Cruse 3 horizon as previously announced provides further proof of concept that these deep horizons contain producible hydrocarbons.

The various data gathering exercises outlined above will be completed in January 2024 and decisions will be taken on how best to optimise production from the well. The results of these activities  will also help the Company's decision-making process for the adjacent Buenos Ayres licence where Trinity intends to drill a further exploration well next year.                                                                                                                   

Now that the completion of the Lower Cruse 1 zones has occurred, the majority of the key activities have been completed, and we estimate that the undisputed costs incurred to date thus far to be USD 8.3 million, of which USD 6.2 million has already been paid.  There is an amount of USD 2.3 million which falls outside of the drilling contract provisions, and pertains to costs incurred while drilling the well. As previously reported, Trinity expects to settle the total cost of this well, without recourse to any external finance.

The Company will continue to keep the market informed of progress on Jacobin operations.

Jeremy Bridglalsingh, Chief Executive Officer of Trinity, commented:

"The well has reinforced our confidence in the potential of the deeper play despite the operational challenges encountered with the Jacobin well.  We have flowed volumes of good quality oil and demonstrated the potential for producible  oil in the deeper horizons. Our work now will be to gather further data that will inform next steps in terms of establishing the full production potential of the well."

Investor Presentation

Trinity will provide a live presentation relating via Investor Meet Company on Tuesday, 19th December 2023 at 12:00pm GMT.

The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard or by contacting Support@investormeetcompany.com. Questions can also be submitted at any time during the live presentation.

Investors can sign up to Investor Meet Company for free and add to meet TRINITY EXPLORATION & PRODUCTION PLC via:

https://www.investormeetcompany.com/trinity-exploration-production-plc/register-investor  

Investors who already follow TRINITY EXPLORATION & PRODUCTION PLC on the Investor Meet Company platform will automatically be invited.

Enquiries:

About Trinity (www.trinityexploration.com)

Trinity is an independent oil production company focused solely on Trinidad and Tobago.  Trinity operates producing and development assets both onshore and offshore, in the shallow water West and East Coasts of Trinidad.  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.  The Company operates all of its ten licences and, across all of the Group's assets, management's estimate of the Group's 2P reserves as at the end of 2022 was 17.96 mmbbls.  Group 2C contingent resources are estimated to be 48.88 mmbbls.  The Group's overall 2P plus 2C volumes are therefore 66.84 mmbbls.

Trinity is quoted on AIM, a market operated and regulated by the London Stock Exchange Plc, under the ticker TRIN.

Qualified Person's Statement

The technical information contained in the announcement has been reviewed and approved by Mark Kingsley, Trinity's Chief Operating Officer.  Mark Kingsley (BSc (Hons) Chemical Engineering, Birmingham University) has over 35 years of experience in international oil and gas exploration, development and production and is a Chartered Engineer.

Disclaimer

This document contains certain forward-looking statements that are subject to the usual risk factors and uncertainties associated with the oil exploration and production business.  Whilst the Group believes the expectation reflected herein to be reasonable in light of the information available to it at this time, the actual outcome may be materially different owing to macroeconomic factors either beyond the Group's control or otherwise within the Group's control.