Pilot Enhanced Oil Recovery Onshore Trinidad

RNS Number : 6979M

Predator Oil & Gas Holdings PLC

13 May 2020

 

FOR IMMEDIATE RELEASE

 13 May 2020

Predator Oil & Gas Holdings Plc / Index: LSE / Epic: PRD / Sector: Oil & Gas

Predator Oil & Gas Holdings Plc

("Predator" or the "Company" and together with its subsidiaries "the Group")

  Pilot Enhanced Oil Recovery onshore Trinidad

  using injected Carbon Dioxide ("Pilot CO2 EOR")

Predator Oil & Gas Holdings Plc (PRD), the Jersey-based Oil and Gas Company with operations in Trinidad, Morocco and Ireland, notes the announcement today by Columbus Energy Resources PLC ("Columbus"), that the Petroleum Operations Management Division of the Ministry of Energy and Energy Industries ("MEEI") has granted approval for the AT-5X carbon dioxide and injection system to start injecting for a period of 90 days. This will allow the maximum carbon dioxide injection rate and pressure, as determined by the reservoir engineering forecasts, to be achieved.

The carbon dioxide injection and delivery system and site layout has been independently inspected to ensure that the highest HSE standards possible are applied to enable operations to continue uninterrupted during the COVID-19 public health emergency. 

  Paul Griffiths, Chief Executive of Predator, commented:

"This is an important operational development that allows us to increase our ability to sequestrate anthropogenic carbon dioxide whilst accelerating the point at which revenues are generated. Enhancing the scale of return on investment can be achieved by maximising well deliverability. We are pleased that continuing to execute our CO2 EOR strategy by increasing CO2 injection volumes is helping us to reach our near-term goal of developing a carbon-neutral energy business. At the same time, we are maintaining during these difficult times our support for contributing to the local economy, which is significantly dependent on the energy industry." 

Background - Trinity Inniss CO ₂ Project

As previously announced, the term of the Inniss-Trinity Incremental Production Service Contract ("IPSC") has been extended to allow for the implementation of Pilot CO2 EOR. 

The first tranche of CO ₂ has now been injected into well AT5X in the Inniss-Trinity field and will over time contribute to the determination of  any impact on enhancement of  production in offset wells to AT5X. Predator and Columbus, its joint venture partner, will inject further tranches of CO ₂ as is required to fully evaluate the potential of CO ₂ injection to increase oil production from the offsetting wells in the AT-4 Block, which is the site of the initial Pilot CO2 EOR.

Predator benefits from a Well Participation Agreement with FRAM Exploration Trinidad Ltd ("FRAM"), a wholly owned subsidiary of Columbus, whereby Predator will help plan and fund the Pilot CO ₂ EOR  in return for 100% recovery of its project costs from Pilot CO2 EOR profits from oil sales, and thereafter 50% of all profits attributable to the Pilot CO2 EOR.  As part of the agreement with FRAM, Predator has the right (until 30 September 2020) to acquire FRAM's interest (the "Interest") in the Inniss-Trinity field for US$4.2m. 

The following table summarises the range of total gross and net CO2 EOR audited Inniss-Trinity contingent, pending development, resources attributable to the Interest, as previously announced following an independent Competent Persons Report by SLR Consulting commissioned by Predator .

Table 1  Contingent Resources Inniss-Trinity

Gross
Inniss-Trinity Field	Low Estimate	Best Estimate	High Estimate	Operator
OOIP (MM bo)	89	68	89	FRAM
Recovery Factor	6%	10%	10%	FRAM
Gross Contingent Resources (MM bo)	5.3	6.8	8.9	FRAM	C02 EOR Development Pending

This announcement contains inside information for the purposes of Article 7 of the Regulation (EU) No 596/2014 on market abuse

For more information please visit the Company's website at  www.predatoroilandgas.com : 

Enquiries:

Predator Oil & Gas Holdings Plc Carl Kindinger Chairman Paul Griffiths  Chief Executive Officer	Tel: [phone] [e-mail]
Novum Securities Limited Jon Belliss Optiva Securities Limited Christian Dennis	Tel: [phone] Tel: [phone]
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Qualified Person's statement:

The information contained in this document has been reviewed and approved by Mr. Paul Griffiths, Chief Executive Officer. Mr Griffiths has a BSc in Geology from Imperial College London and is an Associate of the Royal School of Mines. Mr. Griffiths has over 43 years of relevant experience in the upstream oil industry.

Notes to Editors:

Predator is an oil and gas exploration company with the objective of participating with FRAM Exploration Trinidad Ltd. in further developing the remaining oil reserves in the producing Inniss Trinity oil field onshore Trinidad, primarily through the application of C02 EOR technology. Potential for cash flow exists by executing a Pilot Enhanced Oil Recovery project using locally sourced liquid carbon dioxide for injection into the oil reservoirs ("C02 EOR"). Near-term expansion and growth potential is focussed on upscaling the C02 EOR operations in the Inniss-Trinity oil field and potential acquisitions of assets suitable for C02 EOR development, subject to all necessary approvals. 

In addition, Predator also owns and operates exploration and appraisal assets in current licensing options offshore Ireland, for which Successor Authorisations have been applied for, adjoining Shell's Corrib gas field in the Slyne Basin on the Atlantic Margin and east of the Kinsale gas field and Barryroe oil field in the Celtic Sea.

Predator is operator of the Guercif Petroleum Agreement onshore Morocco which is initially prospective for Tertiary gas in prospects less than 10 kilometres from the Maghreb gas pipeline.

The Company has a highly experienced management team with a proven track record in the oil and gas industry.

 

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