8th Apr 2015 07:04
LONDON (Alliance News) - Trinity Exploration and Production PLC Wednesday said it has launched a strategic review of the company after receiving a number of conditional proposals which could lead to a merger, the sale or farm-out of some of the company's assets or the sale of the company.
Following on from the approaches, Trinity said it has decided to enter discussions with interested parties under a formal sale process framework in order to enable discussions about a potential merger on a confidential basis, it said in a statement.
Trinity also reported its first quarter production results, which saw net production average 3,433 barrels of oil equivalent per day. In February, the company said production was set to decline and set itself a target of between 3,000 to 3,400 barrels of oil equivalent per day. In the fourth quarter of 2014, production averaged 3,470 barrels per day.
All of the companies production comes from the east and west coasts of Trinidad and Tobago.
At the end of the first quarter, Trinity reported a cash balance of USD7.5 million, receivables of USD27.3 million, inventories of USD8.1 million and debt of USD13.1 million.
Trinity said that it also expects to make a non-cash impairment charge in 2015 due to the decline in oil prices since the middle of 2014.
In March, Trinity sold surplus casing and tubing to three companies for USD3.5 million, but said the fall in casing and tubing prices meant the sale resulted in an accounting loss on the sale of USD1.3 million as it tried to gather funds to reduce amounts owing to purchasers in relation to services provided by the purchasers to the company. It also said it would only spend around USD2.5 million in capital expenditure in 2015 and said it was "aggressively husbanding cash".
Trinity shares were up 7.3% to 20.65 pence per share on Wednesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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