Lets make the % suffer29 Nov 2025 22:13
With thanks to Keith oz
There are many T&T oilfields in private hands that have received little investment and are now only producing marginal amounts of oil. Unlike almost anywhere else, oilfields change hands valued on a daily production rate, rather than $ value per in-ground barrel. This means you can buy high reserves but low production fields cheaply, restore them to decent production rates, then sell for a tidy profit. Currently PRD has five T&T oilfields and is looking for more. How are they intending to go about the crucial step of increasing daily production?
*Workovers – Old wells are unclogged and cleaned up using a lightweight drilling rig. This is fast and cheap.
*Infill drilling – Has started on Bonasse and will be extended to other fields. A rule of thumb is that a nodding donkey can optimally drain 100,000m² (25 acres), so used where there are gaps between existing bores.
*De-waxing – Much T&T oil is relatively viscous and contains paraffins. As the oil is brought to the surface, it cools and depressurises, the paraffin crystallises, and clumps of crystals form a waxy deposit that clogs up the wellbores and piping. This can be overcome by injecting a chemical that releases nitrogen and heat. The heat liquifies the wax, and the nitrogen helps lift the oil to surface.
*CO2EOR. T&T ammonia companies produce over 300 MMcf of CO2 per day as a by-product, currently released as waste into the atmosphere. Injecting CO2 into an oil reservoir reduces the oil viscosity and increases the reservoir pressure, thus increasing recoverability. PRD has developed an injection process which has been tested on the Innis-Trinity field (now owned by PRD). Paul has mentioned several times recently that this process could be rolled out to our other fields. Depending upon oil viscosity, 1–6 mcf of CO2 is required per barrel. Paul has presented the I-T trial results to MEEI, and he is a member of the T&T Government committee on enhanced oil production.
Pp 17 - 25 of the July 2020 presentation give some interesting estimates of T&T CO2EOR profitability, based on $41 per bbl WTI ($58.50 today). Since both price and operating costs have changed dramatically, and the I-T field is now in PRD hands, I am reluctant publicly to provide an updated forecast, but incremental production from selected wells in the five suitable horizons of just I-T should produce a profit in excess of today's market capitalisation. I will try to obtain some up-to-date numbers in order to firm up my assumptions, but don't hold your breath.
https://wp-predatoroilandgas-2024.s3.eu-west-2.amazonaws.com/media/2024/09/Corporate-Presentation-29-July-2020_FINAL-DRAFT-1.pdf
P.7 of 2020 Annual Report gives for the AT-12 well a pressure increase of 87psi, incremental production of 21bopd, 69% above forecast.
https://wp-predatoroilandgas-2024.s3.eu-west-2.amazonaws.com/media/2024/09/Webinar-Presentation-website-Version-28092021-Corrections-15.40pm.pdf
Sign In
Follow the stocks
