TRINITY, the oil and gas firm focused on Trinidad and Tobago, saw 7% wiped off the value of its shares after enduring production difficulties in a key offshore field.
The company, which acquired Bayfield Energy in a reverse takeover in February, lowered its production guidance for the Trintes field after drilling operations were disrupted by problems over power generation.
Trinity, chaired by North Sea veteran Bruce Dingwall, has suspended drilling in the east coast field while upgrading work is carried out, but hopes to recommence operations later in the year.
It has cut its production target for the field to 4200 to 4500 barrels of oil equivalent per day (net) exit rate for 2013, compared with the 5000 forecast in February.
In spite of the disruption, Trinity has reported revenues of $54.4 million (£34m) for the six months to June 30, compared with $40.5m for the same period last year.
Interim results show the company, which has its UK base in Edinburgh, made profits after tax and before exceptional items of $1.8m for six months ended June 30. Taking the assets and liabilities Trinity acquired from Bayfield into account, the firm's after-tax profit post exceptionals was $54.1m for the period.
The £45m Bayfield deal allowed Trinity to acquire production and reserves in a hydrocarbon basin it did not previously have exposure to. It also said the transaction allowed it to recapitalise through the issue of new shares.
Trinity, which also operates in South Africa, reported earnings before interest, taxation, depreciation and amortisation (EBITDA) of $15.8m, and cash flow from operating activities was $11.2m.
It noted its current production was 3830 boped (barrels of oil equivalent per day), an increase of 12% since its current management team took full operational control in February.
It said the first half had seen it bring six onshore developments into production. The wells have an average initial production rate of 150 bopd (barrels of oil per day), ahead of the 50 bopd per well budgeted for.
Trinity confirmed its plans to spud two new offshore exploration wells in the fourth quarter of this year, one off the east coast and one west, that chief executive Monty Pemberton said "have the potential to more than double the size of the business".
Mr Pemberton said: "In the first four and a half months of trading, Trinity has been able to grow production and reserves despite the operational challenges on the Trintes field.
"Our team has grown production through the drill bit by 35% on the onshore and west coast assets, generating operating cash of $11.2m for the half year, and increased 2P (proven and probable) reserves by 4.4 mmbbl (millions of barrels).
"Importantly, this was delivered safely with zero LTIs (lost time incidents). Trinity is delivering on its strategy of increasing production, adding reserves, and maintaining profitability."
Shares in Trinity closed down 8p at 102p.
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