Trinidad-focused oil company Trinity Exploration & Production (TRIN:AIM) has been one of the best performing oil stocks this year on AIM following the completion of its financial restructuring in January.

The shares, which were suspended at 1.75p last July before the balance sheet fix, now trade at nearly 13.5p. There could be further upside to come as Trinity executes on its low cost and high margin growth strategy in the Caribbean.

House broker Cantor Fitzgerald has a price target of 37p, which is nearly three times the current share price.

Onshore development drilling is expected to lift output from 2,500 barrels of oil per day (bopd) to 3,000 bopd over the coming 12 months.

Cantor analyst Sam Wahab comments: ‘In the current low oil price environment the company has prioritised the allocation of capital to its production and development assets to generate material cash flows and compelling economic returns, focusing on extracting value from the “low hanging fruit” in its portfolio.’

Trinity joined AIM in February 2013 through a reverse takeover of Bayfield Energy. Founder Bruce Dingwall, who serves on the board
as executive chairman, has enjoyed success in the past with North Sea-focused Venture Production.

Venture was floated at 170p in 2002 and subsequently acquired by Centrica (CNA) in August 2009 for 845p.

Trinity is on a firmer footing. Keep buying.

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