Pilot Enhanced Oil Recovery onshore Trinidad

RNS Number : 4561O

Predator Oil & Gas Holdings PLC

01 June 2020

 

FOR IMMEDIATE RELEASE

1 June 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") confirming the start of Phase 2 of the CO ₂ Pilot Project in the Inniss Trinity field.  

Predator's immediate   objective is now to maintain CO2 injection at the optimum peak rate of 9 metric tonnes per day, in accordance with pre-injection reservoir engineering recommendations.

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 plans and funds 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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