Home' Trinidad and Tobago Guardian : May 2nd 2013 Contents BG12 | ENERGY
BUSINESS GUARDIAN www.guardian.co.tt MAY 2013 • WEEK ONE
As Trinity Exploration and Production
plc falls to new lows on the London
Stock Exchange (LSE) Alternative
Investment Market (AIM), its largest
investor is also its most optimistic.
A leading UK financial services company, Legal
and General Group plc (L&G), acquired 25.43 per
cent of Trinity plc in the days after the San Fernan-
do-domiciled company completed its reverse takeover
of Bayfield Energy, and relisted for trading as TRIN
on AIM for £1.20 per share on February 14.
In a telephone interview from London, Matthew
Evans, the L&G fund manager in charge of the invest-
ment into Trinity Plc, reaffirmed L&G s faith in Trinity
management, and explained why the L&G became
the T&T-based company s single largest shareholder.
L&G is a major shareholder, defined by the LSE as
owning at least three per cent, in several FTSE-100
companies that have already invested heavily in T&T,
including BP, BG Group, BHP Billiton, Royal Dutch
Shell and Centrica.
When Bayfield Energy was listed on the London
Stock Exchange s junior market, L&G "spent some
time assessing the oil and gas industry in T&T, and
we felt it looked quite interesting. However, at the
time we were looking at Bayfield, it wasn t quite
appropriately set up for us to invest in that," Evans
However, he said, Bayfield s assets resembled the
North Sea assets in that it was tasked with extracting
oil and gas "from a fairly mature field."
He said L&G "felt there was a chance to replicate
the North Sea model," but it was only when Trinity
acquired Bayfield through a reverse takeover that "it
felt like the right time to get involved."
Evans said: "The management team
at Trinity brought some very good local
management and operational capability
on the ground in Trinidad, which we
felt added quite a lot to the additional
skills and criteria that we would look
for in the top management; on the
ground; operational expertise which we
felt looked attractive."
Asked if his confidence is in not only
the asset but also the management,
Evans said "Yes, well, we knew Bayfield
before, but had not invested in it, but
we felt that Trinity s management and
operational expertise would be spread
across the company over a broad range
He said the Trinity management
"gave us confidence that they could
extract value from that portfolio." Trinity
plc is successor to the Bruce Dingwall-
started Trinity Exploration and Pro-
duction Ltd which was previously 10
The L&G fund manager said he was
familiar with Dingwall as the founder
of Venture Production, which success-
fully did in the North Se, what Bayfield
was trying to do on Trinidad s east
coast. Evans said he also met Trinity
plc chief executive officer Monty Pem-
berton twice in London and was
impressed with his track record at 10
Degress North and Trinity Exploration
and Production Ltd.
"We knew the guys who were ex-
Venture from the Trinity side. We knew
Bruce Dingwall from his days at Venture
Production and we felt he did a good
job there," he said.
What sealed the deal was "actually,
the local management team who gave
us confidence that they had the skills
to really extract the maximum value
from assets that are based in Trinidad,"
Asked if he was concerned the stock
was sliding and, at the time of the inter-
view, trading below its opening price,
Evans pointed outt it was trading even
lower than the Business Guardian had
"The stock markets, at the moment,
are pretty volatile," he said.
One of the issues that Trinity will
have, he said, is that although it has a
"good core of assets" they are "quite
mature and will require a bit of work,"
but will incrementally boost the com-
pany s production.
"I think the stock market in London
will take some time to fully appreciate
the value that that can add to a business
over time," he said.
Still, he said, "It s a good core asset
base. We believe it s fundamentally
He said L&G is prepared to wait for
the first 12-18 months to let the com-
pany "really highlight" how good the
assets are and by then, the shares will
be "more fairly priced."
Asked if he thought the assets are
undervalued, he said: "That s one of
the biggest things for us. Really, the
asset base is undervalued."
Trinity plc opened at £1.20 on Feb-
ruary 14, hit its high of £1.34 on the
same day, and low of £1.05 on April
29. Since March 14, when it reached a
high of £1.30, it has been in steady
UK's L&G in with
Trinity for the long haul
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