Trinity Exploration & Production has completed the restructuring of the company.
The oil company with assets and Trinidad and Tobago has been trying to resolve its financial issues for months, and it on Wednesday said that the restructuring “is now completed.”
It said the restructuring would enable it to go forward with a significantly deleveraged balance sheet.
The like for like net debt position will reduce from $35.5 million as at October 31 2016 to a pro forma net debt position of approximately US$9.2 million post-completion of the restructuring. The equivalent net position excluding long term liabilities would be a net cash position of approximately US$4.5 million.
When it comes to operations, Trinity said it would resume onshore drilling program at the rate of four new onshore wells per year starting 2017, subject to market conditions, most notably the prevailing oil price.
It said that its planned onshore activities have the potential to grow production from current levels of c. 2,600 barrels of oil per day, which comprises 3.6 per cent of total countrywide production in Trinidad and Tobago, to an eventual run-rate of 3,000 barrels of oil per day.
As for the offshore drilling, Trinity doesn’t expect new offshore drilling will occur before late 2018, subject to market conditions.
Bruce A. I. Dingwall CBE, Executive Chairman of Trinity, said: “The completion of the restructuring brings to an end a period of prolonged uncertainty for Trinity, and will provide a strong foundation for the company to move forward and to develop the group’s valuable interests across the onshore, east coast and west coast production areas for the benefit of shareholders and the company’s other stakeholders.”