Trinity Exploration PLC (LON:TRIN) has agreed to sell a block of producing assets in Trinidad to neighbour Range Resources PLC (LON:RRL).
The assets are offshore the west coast of the island and will release capital to invest in the company’s operations on the other side of Trinidad, said Trinity.
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Range is paying US$4.55mln for the assets, which are in the Brighton Marine/Point Ligoure-Guapo Bay licence areas.
Average production from the licences was 190 barrels daily in 2016 with 2P reserves of 2.6mln barrels. Trinity booked a pre-tax loss of US$2.1mln from the assets over that year.
Bruce Dingwall, Trinity’s executive chairman, said: "Trinity's West Coast portfolio played a significant role in the early evolution of the company.
“However, greater shareholder value can now be delivered by focusing our financial and management resources on driving forward a focused onshore and offshore portfolio."
Range added that the acquisition increases its current production in Trinidad by approximately 33% to over 800 bopd, while also boosting its footprint and providing significant operational synergies with its existing operations.
Cost of acquisition is about US$1.75mln per 2P barrel.
It is Range’s second acquisition this month following the purchase of a stake in production assets in Indonesia.
The Brighton Marine field has been in production since the 1950's with over 60mln barrels produced to date. It is operated primarily via 9 unmanned, offshore platforms with all oil handling and sales infrastructure in place onshore.
The current Point Ligoure licence was awarded to Trinity in 2012 and also has a long history of prior production.