Trinity Exploration & Production (LON:TRIN) told investors it is on track to cut costs by 20% during 2015.
The Trinidad oil and gas group, in its interim results statement, said that production levels had held up well, despite significantly reduced capital spending on the assets.
It reported average net production of 3,085 barrels oil equivalent per day in the six months to June 30, down from 3,795 boepd in the comparative period of 2014.
The company also highlighted that as oil prices (WTI) had fallen below US$50 per barrel, the operations in Trinidad were not subject to the country’s supplementary taxes.
It reported revenue of US$27.8mln for the first half, compared with US$62.3mln in the first half of last year. Operating costs for the first half, meanwhile, reduced by 36% compared with last year to US$12mln.
Earnings - EBITDA, before exceptional items and exploration write offs – amounted to US$1.6mln (compared with US$12.5mln in H1 2014) and a similarly adjusted operating loss figure was reported at US$1.3mln (US$3.8mln H1 2014).
The group’s net loss was reported as US$15.8mln.
There was an impairment of US$6.1mln relating to Blocks 1(a) & 1(b).
Trinity said it had US$8.2mln of cash at the end of the first half, and this morning it confirmed a further extension to a moratorium on its US$13mln debt, now until October 9.
It comes as the company continues a strategic review and formal sales process, which could see asset sales or the sale of the entire company.
Chief executive Joel ‘Monty’ Pemberton, in the results statement, said: “We continue to explore all of the options for our business to ensure we can maximise value for our shareholders.
He added: “The FSP process remains competitive, with discussions ongoing with several interested parties, and we look forward to announcing additional news on the strategic review and FSP in due course.
“At oil prices below US$50/bbl we do not pay SPT which in conjunction with on-going operational efficiencies and cost cutting enhances our production economics and the value of Trinity's portfolio."