Trinity Exploration & Production PLC’s (LON:TRIN) third quarter production averaged 2,816 barrels of oil per day in the third quarter as the Trinidad oiler delivered new wells.
The company has now completed four new onshore wells in its current drill programme, including its first ‘high angle well’ (HAW) which is described as performing in line with expectations.
Two of the four new wells came online in the third quarter, and the third began producing since the end of September.
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Production in October to date has averaged 3,017 bopd as rates rise steadily, and, the company expects to exit 2018 producing at around 3,400 bopd.
The first HAW is expected to deliver around 134 bopd once its fully optimised.
Trinity is more broadly optimising its operations with the use of SCADA, a field monitoring system provided by partner Weatherford.
Trinity also highlighted that it moved opportunistically to implement further hedging activities amid spiking oil prices, with the efforts partially intended to mitigate the negative impacts of Trinidad’s Supplementary Petroleum Tax. Currently, the company has some 35,000 barrels of monthly production under hedging arrangements.
Looking ahead, it noted that the fourth new well will be put on production in the coming days, and, the drill programme will shortly move onto the location for the fifth new well and a sixth well will be drilled during the fourth quarter.
"We continue to focus on increasing our low-cost high margin production while developing our asset base and utilising new technologies in order to maximise the resultant returns,” said Bruce Dingwall, Trinity executive chairman.
“The company is pleased with the production achieved by the three new completed infill wells, including from our first HAW which we see as integral to achieving our growth ambitions going forward.
Dingwall added: "When we couple these new higher production levels, our low cost base and the increased production rates seen on our trial digital SCADA wells, we believe we are in a great place to move forward as a free cash flow generating business with significant upside potential."