Bayfield Energy Holdings and Trinity Explorer hit by production issues

published 13 February 2013

Bayfield Energy Holdings and Trinity Explorer said operational problems have hit production at their Trintes oil field off the coast of Trinidad.

The companies reported a failure of the main generator of its Alpha platform at the prospect.

"Following repairs to the generator, intervention work has been undertaken to resume production from the wells impacted by the power outage," Bayfield said in a statement.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

"Production from these wells is increasing though still at levels below those achieved prior to the incident.

"12 wells from a total of 36 potential production wells are currently shut-in awaiting remediation."

Remedial action is in progress and expected to add up to circa 410 barrels of oil per day (bopd) by the end of March. Current gross production is circa 1,800 bopd.

A new generator will be installed on Alpha along with preventative maintenance.

The problems were noted alongside Trinity's sales results for January which averaged 2,260bopd net, ahead of budget for the period.

The news comes after Bayfield said it would merge with Trinity, in a reverse takeover of the London-listed company.

Each Trinity share will receive about 7,478 new ordinary shares of Bayfield.

Monty Pemberton, Chief Executive Officer of Trinity, said he was pleased with the company's results last month and is looking forward to the merger.

"We eagerly await completion of the merger with Bayfield to provide the financial resources needed to rectify Bayfield's current production issues and deliver the work programme as presented in the Admission Document," he said.

"We remain confident that we will achieve the previous guidance of 5,000 bopd exit rate for 2013."