Trinity Exploration & Production PLC (LON:TRIN) today confirmed the company has now completed its restructuring.
Executive chairman Bruce Dingwall said a period of prolonged uncertainty has now come to an end.
The restructuring reduces the group’s debt position to US$9.2mln from US$35.5mln, and it has a net cash position of around US$4.5mln.
It allows Trinity to take forward a work programme to sustain and grow current production levels, 2,600 barrels of oil per day, to around 3,000 bopd.
Onshore, the group intends to drill four new onshore wells per year plus recompletions and workovers.
Trinity added that it could restart offshore drilling activity by late 2018, depending upon market conditions.
In a statement, Dingwall said: “The completion of the restructuring brings to an end a period of prolonged uncertainty for Trinity, and will provide a strong foundation for the company to move forward and to develop the group's valuable interests across the onshore, east coast and west coast production areas for the benefit of shareholders and the company's other stakeholders."
Trinity announced in early December that it was abandoning its attempts to sell the company, in favour of raising US$15mln new capital. New shares were sold at 4.68p, a 165% premium to the Trinity price before it was suspended in July.
Lender Citibank, meanwhile, has agreed to a major haircut of loans it has made to the group. The bank will receive US$3.5mln as settlement of outstanding senior debt of US$9.95mln.