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Trinity Exploration sells west coast Trinidad assets to Range Resources

The Brighton Marine field has been in production since the 1950's with over 60mln barrels produced to date
picture of oil rig
Assets are offshore Trinidad's west coast

Trinity Exploration PLC (LON:TRIN) has agreed to sell a block of producing assets in Trinidad to neighbour Range Resources PLC (LON:RRL).

The assets are offshore the west coast of the island and will release capital to invest in the company’s operations on the other side of Trinidad, said Trinity.

READ: Positive performance Trinity Exploration & Production suggests turnaround plan is working

Range is paying US$4.55mln for the assets, which are in the Brighton Marine/Point Ligoure-Guapo Bay licence areas.

Average production from the licences was 190 barrels daily in 2016 with 2P reserves of 2.6mln barrels. Trinity booked a pre-tax loss of US$2.1mln from the assets over that year.

Bruce Dingwall, Trinity’s executive chairman, said: "Trinity's West Coast portfolio played a significant role in the early evolution of the company. 

“However, greater shareholder value can now be delivered by focusing our financial and management resources on driving forward a focused onshore and offshore portfolio."

Range added that the acquisition increases its current production in Trinidad by approximately 33% to over 800 bopd, while also boosting its footprint and providing significant operational synergies with its existing operations.

Cost of acquisition is about US$1.75mln per 2P barrel.

It is Range’s second acquisition this month following the purchase of a stake in production assets in Indonesia.

The Brighton Marine field has been in production since the 1950's with over 60mln barrels produced to date. It is operated primarily via 9 unmanned, offshore platforms with all oil handling and sales infrastructure in place onshore.

The current Point Ligoure licence was awarded to Trinity in 2012  and also has a long history of prior production.

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