29th Jun 2015 08:20
LONDON (Alliance News) - Trinity Exploration and Production PLC Chief Executive Joel Pemberton said Monday the company continues to try to monetise assets and re-position the business for value realisation and growth, ahead of a debt repayment that is due Tuesday.
"Despite recent radical change in the oil price environment, the board of Trinity remains convinced that the hydrocarbon basins of Trinidad and Tobago, and the local industry's levels of maturity, present outstanding opportunities for an independent exploration and production company to flourish," he said in a statement ahead of Trinity's annual general meeting later Monday.
Pemberton said the company is working on improving cost efficiencies in response to the fall in oil prices whilst it attempts to finalise a formal sales process. In April, the company launched a strategic review which could lead to the potential sale of the company, a merger or the sale of the company's existing assets.
"Since the formal sales process started the board has been engaging with a number of interested parties to progress a number of options to maximise and ensure long-term value. Progress to date has underlined management's confidence in the value of the assets. In tandem to working towards a possible solution, Trinity continues to manage its liquidity position with its creditors," said Pemberton.
Earlier in June, Trinity secured an extension with its lender for repayments related to Trinity's outstanding debt balance. Trinity currently has USD13 million worth of outstanding debt owed to Citibank, which is due no later than Tuesday.
"Our principal lender has been supportive of Trinity during the formal sales process and management continues to work closely with them in terms of our existing facilities," said Pemberton on Monday.
"The steps Trinity has taken over the past year provides the company with a solid platform from which to move forward. In the first quarter of 2015 all of Trinity's assets generated positive operating cash flow," he added.
Trinity shares were down 3.1% to 14.06 pence per share on Monday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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