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LONDON (Alliance News) - Predator Oil & Gas Holdings PLC said Wednesday an initial assessment looking at the use of carbon dioxide enhanced oil recovery at its Inniss-Trinity oil field in Trinidad has confirmed the feasibility of the project.
Shares in the oil & gas company were up 13% on Wednesday at 7.40 pence each.
In this method of oil extraction, compressed carbon dioxide is injected into the oil reservoir to improve oil flow. A previous waterflood project at Inniss-Trinity, however, presents some difficulties for Predator when using this method.
"These challenges can be addressed by carbon dioxide injection when combined with the application of an appropriate reservoir engineering management plan," the company said.
Start-up capital costs for the project have been reduced to below USD600,000 and anticipated operating costs were also lowered as daily carbon dioxide injection rates are likely to be 35% below prior estimates.
The project's two trial wells have a combined estimated scoping production rate of 300 barrels of oil per day, six times their current production rates.
If these trials are successful, Predator said it could target between 8.1 million and 15.6 million barrels of incremental resources.
"A successful pilot project opens the door to expedient upscaling to further develop multi-million barrel producing oil fields onshore Trinidad using the technology and vision being pioneered in practice by your company, potentially establishing a niche position for the company in Trinidad," said Chief Executive Paul Griffiths.
"We look forward to keeping the market updated on our Trinidad operations together with our progress offshore Ireland with our Corrib South Project where we await the approval of our Frontier Exploration Licence," Griffiths added.