Canadian oil group Touchstone Exploration (TSE:TXP) has bought the onshore Trinidad portfolio of London-listed Trinity Exploration (LON:TRIN) for US$20.8mln.
The disposal will enable Trinity to repay in full its senior secured debt facility and make in-roads into its other outstanding commitments.
Touchstone will pay US$2.08mln into escrow to be released on completion when the rest of the consideration will be paid, which is expected to be by the end of the year.
The blocks produced at an average 1,574 barrels per day in the period to August and had a book value of US$17.17mln.
Losses attributed to the five blocks and licences for the eight months to August were US$2.33mln.
Following the sale, Trinity will focus on its offshore Trinidad licences that have net 2P (proved plus probable) reserves of 18.5 mmboe and 21.7 mmboe of contingent resources, according to management.
The offshore assets produced an average of 1,333 boepd to 30 June.
Joel "Monty" Pemberton, chief executive, said while onshore had played a significant role in Trinity’s early development, better value could be delivered by delivered by relieving the pressure on the balance sheet and giving it flexibility to develop the offshore assets.
Separately, Trinity said it had agreed an extension with its lenders on principal repayments until 23 October with a further extension under discussion following the US$20.8mln disposal.