Trinity Exploration & Production Trinidad and Tobago Budget Highlights
11 Ottobre 2019 - 8:00AM
RNS Non-Regulatory
TIDMTRIN
Trinity Exploration & Production
11 October 2019
Trinity Exploration & Production plc
("Trinity" or "the Group" or "the Company")
Trinidad and Tobago Budget Highlights
Trinity, the independent E&P company focused on Trinidad and
Tobago notes the Government of Trinidad and Tobago's proposed
reforms encouraging investment in the energy sector included in
this week's Budget Statement.
The Statement, in relation to oil production, specifically
contained three notable changes as described below:
1) Supplemental Petroleum Tax ("SPT"): an increase in Investment
Tax Credit from 20% to 25% thereby increasing the amount of capital
expenditures that can be used to offset against SPT
2) Capital Allowances for Tangible and Intangible Drilling &
Development costs: changing the allowance profile from 50% in year
1; 30% in year 2 and 20% in year 3 to 20% straight-line basis over
5 years, that is, 20% of costs per year
3) Loss Relief: a reduction in the rate from 100% to 75% of
taxable profits. Thereby 75% of the current year taxable profits
would be sheltered from Petroleum Profits Tax ("PPT") by brought
forward losses, with any remaining tax losses continuing to be
carried forward indefinitely
All changes will be effective from 1 January 2020.
Bruce Dingwall CBE, Executive Chairman of Trinity,
commented:
"Whilst the change to investment tax credits to offset against
SPT is to be welcomed, its impact on Trinity is effectively negated
by the deferral of benefits for capital allowances and PPT relief.
In aggregate, the net effect of the changes on Trinity's portfolio
NAV, and expected free cash flow profile, is not expected to be
material. There is an industry wide call for more fundamental SPT
reform to encourage greater investment in the energy sector, and we
remain at the forefront of discussions which we hope will result in
further significant changes in due course. In the meantime, our
focus remains on deploying both financial and operational levers to
ensure Trinity can be free cash flow positive across the broadest
possible range of oil prices (including a worst case SPT scenario).
"
The full Budget Statement is available here:
https://www.finance.gov.tt/wp-content/uploads/2019/10/BUDGET-STATEMENT-2020.pdf
Enquiries:
For further information please visit www.trinityexploration.com
or contact:
Trinity Exploration & Production plc +44 (0)131 240 3860
Bruce Dingwall CBE, Executive Chairman
Jeremy Bridglalsingh, Chief Financial Officer
Tracy Mackenzie, Corporate Development
Manager
SPARK Advisory Partners Limited (Nominated
Adviser and Financial Adviser) +44 (0)20 3368 3550
Mark Brady
Miriam Greenwood
Andrew Emmott
Cenkos Securities PLC (Broker)
Joe Nally (Corporate Broking)
Neil McDonald
Derrick Lee +44 (0)20 7397 8900
Pete Lynch +44 (0)131 220 6939
Whitman Howard Limited (Equity Adviser) +44 (0)20 7659 1234
Nick Lovering
Hugh Rich
Walbrook PR Limited +44 (0)20 7933 8780
Nick Rome trinityexploration@walbrookpr.com
About Trinity (www.trinityexploration.com)
Trinity is an independent oil and gas exploration and production
company focused solely on Trinidad and Tobago. Trinity operates
producing and development assets both onshore and offshore, in the
shallow water West and East Coasts of Trinidad. Trinity's portfolio
includes current production, significant near-term production
growth opportunities from low risk developments and multiple
exploration prospects with the potential to deliver meaningful
reserves/resources growth. The Company operates all of its nine
licences and, across all of the Group's assets, management's
estimate of 2P reserves as at the end of 2018 was 24.5 mmbbls.
Group 2C contingent resources are estimated to be 18.8 mmbbls. The
Group's overall 2P plus 2C volumes are therefore 43.3 mmbbls.
Trinity is quoted on the AIM market of the London Stock Exchange
under the ticker TRIN.
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contact rns@lseg.com or visit www.rns.com.
END
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