Trinidad massive upgrade Aug 1810 Sep 2018 15:49
CEO, Paul did mention the restructure of Petrotrin (Trinidad's Oil & Gas Company) on the recent podcast. Here he's followed it up with some thoughts after Petrotrin’s recent announcement to close their local refinery:
The re-structuring of Trinidad’s State Oil Company Petrotrin, announced on Tuesday, is long overdue.
Petrotrin will exit its huge loss-making local refinery and focus on exporting indigenous oil. This will make no difference to the sale of oil from the onshore producers, which is currently sold to Petrotrin for a discount of around 4 – 6% to West Texas prices. However the closure of the refinery could lead now to oil being sold for export at prices more in line with the prevailing West Texas and World spot price. So this is a potential positive. Indeed oil might be sold from our future Trinidad operations at a premium to spot prices given its good quality.
More significantly the Government has said that Petrotrin will now focus on exploration and production in a drive to increase onshore oil production.
Predator is uniquely-placed to capitalise on these exciting new developments having just this week met with Petrotrin to progress our CO2 EOR in Trinidad. We have cornered the existing C02 Supply and have put together the highest quality internal and local team to execute the CO2 EOR Pilot.
Successful CO2 EOR for Predator will result in the opportunity to rapidly grow our EOR business in Trinidad as the only provider of such services – with experience and funding from cash flow. It’s a unique in-country position that puts Predator firmly in the public eye in Trinidad. The potential is huge.
Indicative reserves and production rates could be up to 380 million barrels could be recovered onshore Trinidad from C02 EOR which could add another 30,000 bopd of onshore production but are subject to further studies and an increased supply of C02 EOR.
However they do provide an initial indication of the material scale of what could be unlocked if a C02 EOR Pilot is seen to be successfully executed with positive results”
No wonder the government are keen to support our business model.
Rarely does a micro-cap company generate such an opportunity. It’s a sign of the strength and track record of our management and our ability to build teams necessary to deliver results.
As you can appreciate we are focussed on “getting it right” with proper joined-up planning which involves all the local stakeholders. This is a once in a lifetime opportunity for us in Trinidad and we intend to patiently progress it to a successful conclusion.
Regards
Paul (CEO)
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