Trinity Exploration eyes production growth even if drill plans stay shelved
Production in the three months ended 31 March averaged 3,291 barrels of oil per day, up 9% versus the same period in 2019 and up 3% on the preceding quarter.
“Our performance during the period, given the extremely challenging backdrop, was pleasing as we grew production and cash while reducing our already low operating breakeven,” said Bruce Dingwall, executive chairman.
“The strength of our operations and balance sheet ensure that we remain well placed despite the current oil price environment.”
No new drilling took place during the quarter, but, three existing wells were recompleted and 39 well workovers were completed.
The company noted that its operating breakeven threshold was maintained at US$26.7 per barrel during the quarter, and, via cost-cutting, is targeting US$20.5 per barrel for the 2020 full year.
Trinity told investors that production volumes for the remainder of 2020 will depend upon the oil price and general market conditions, which will need to support the economic case for the resumption of new drilling activity.
Nonetheless, it guided that 2020 production will increase to 3,100 to 3,300 bopd even if the prevailing oil price environment does not support the case for new drilling.
The company noted that it had US$14.2mln of cash and equivalents at the end of the quarter.
Dingwall added: “we continue to prudently manage our operations, remain highly resilient to low oil prices and are open to capturing new business opportunities in a new era where attractive opportunities exist for more robust and lower cost operators.”