Trinity Exploration sells onshore assets for $21m

Trinity Exploration is selling its onshore assets for $20.8m to Touchstone Exploration.

The AIM-listed company announced the deal on Tuesday, which follows on from the company’s strategic review of assets announced in April.

It will sell its interests in the WD-2, WD-5/6, WD-13, WD-14 and FZ-2 licences and related fixed assets.

The sale is expected to be completed in the fourth quarter and will be effective as at the completion date.

The proceeds will enable the company to pay off its $13m debt, of which it has just been granted a two-day principal repayment extension.

It’s the ninth extension the company has received from its lender, and discussions are ongoing with the lender for a further extension of its credit facilities.

The company said it expect for there to be continued support from the lender as a result of the sale.

The proceeds will also use be used to pay outstanding creditors and strengthen the balance sheet.

Chief executive Joel Pemberton said Trinity's onshore portfolio has played a significant role in the early evolution of the company.

“However, greatest shareholder value can now be delivered by relieving balance sheet pressures and providing the financial flexibility to drive forward a focused offshore portfolio with a defined reserves base and significant further resource potential.”

Shares in Trinity Exploration were up 3.38p (67.6%) to 8.38p at 1122 BST.