The company said in a statement it has entered into a ‘zero cost collar’ for some 25,000 barrels of oil per month, with a price floor (for WTI crude) set at US$45 per barrel and a cap of US$59.80 per barrel.
An existing hedge - put options covering 31,645 barrels a month with a WTI strike price of US$40 per barrel – will remain in place until March 31 2018.
Trinity noted that the combined effect of both hedges in the first quarter of the year will significantly mitigate the downside exposure to the oil price when drilling starts.
“The recent improvement in the oil price has provided an attractive opportunity to further hedge our oil price exposure for 2018,” said Bruce Dingwall, Trinity executive chairman.
“The zero cost collar structure optimizes the amount of capital that can be allocated to exploiting our significant reserves whilst meeting our ongoing financial obligations."
Third quarter review
Separately, in its third quarter review, the company highlighted that it has built on its momentum by continuing to grow production profitably.
Statistics for the third quarter showed a 7.4% increase in production, to 2,506 barrels of oil per day, thanks to the implementation of the programme of recompletions, workovers, reactivations and swabbing in existing wells.
The company ended September 30 with a cash balance of US$12.3mln.
Dingwall added: “As a board, we have continued to maintain financial discipline on our capital spend and operating costs during the period.
“Our focus on the low hanging fruit, through our recompletion, reactivation, swabbing and workover programme has resulted in a 7.4% quarter-on-quarter increase in production and we anticipate further growth in production and profitability during the remainder of the year."