Oil explorer Trinity hailed 2016 as a “transformational period” as it raised funds, settled debts and lowered costs.
Revenues at Trinity, which is focused on Trinidad and Tobago, fell 36% to $35.3million in 2016, while pre-tax losses narrowed to $9.7million from $31million a year earlier.
The London-listed firm’s operating expenditure dropped by 29% and the lack of investment weighed on production, which dropped to 2,542 barrels of oil per day last year, from 2,896 barrels in 2015.
But the San Fernando-headquartered business managed to get a grip on its general and administrative (G&A) costs, which were reduced by 61% to $4.2million.
It raised $15million in January through an issue of shares and convertible loan notes.
Trinity also managed to convince its creditors to settle outstanding debts while strengthening its board with three new appointments.
Its shares were up 11.11% to 15p in London in early trading.
It plans to drill four new wells in each of the next two years, and has a programme of 12 re-completions planned for 2017.
Trinity’s cash balance at the end of February 2017 was $13million, compared to $8.2million at the end of 2015.
Trinity’s executive chairman is Bruce Dingwall, who co-founded Venture Production, a North Sea focused independent oil and gas company, in 1997
Venture Production was eventually swallowed up by Centrica in a £1.2billion deal in 2009.
He founded Trinity in 2005 with the acquisition of Venture Production’s Trinidadian assets
Mr Dingwall said: “We are delighted to have now completed the balance sheet restructuring and we are now focused on growing our reserves and production levels, and achieving a market value that is more reflective of our underlying assets and business.
“During the period production declined due to lack of investment. However, we are now focused on reversing this trend having made significant reductions to OPEX and G&A costs, enabling the company to maintain and enhance cash margins despite a lower oil price environment.
“As such, we are well placed to grow as a producing, cash flow positive business. With a low-cost asset base and strong management team in place we look forward to a busy year ahead.”
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