Trinidad31 Aug 2023 15:52
Long term strategy here but looks good .
Trinidad
On 8 March 2023, the Company announced that it had entered into an agreement ("Agreement") with Challenger Energy Group Plc pertaining to the sale of the Cory Moruga asset in Trinidad. In that announcement, it was noted that completion of the transaction was conditional on consent of the Trinidadian Ministry of Energy and Energy Industries ("MEEI") to a revised work programme for the Cory Moruga licence proposed by the Company, as well as agreement of MEEI to a revision of future fees for the Cory Moruga licence and a settlement / cancellation of past claimed dues pertaining to the Cory Moruga licence. The Agreement stipulated a long stop date of 31 August 2023 for securing the relevant consent and agreements from MEEI.
Dialogue with MEEI continues, with the parties having made progress on reaching acceptable terms, and the parties remain confident that appropriate consents and agreement will be forthcoming. However, completion of the transaction will not be possible by 31 August 2023. Accordingly, the parties have mutually agreed to extend the last date for completion of the intended transaction by 3 months, to 30 November 2023.
The Company sees the opportunity for a future drilling programme at Cory Moruga with the objective of confirming hydrocarbon resources and delivering a high productivity well in a primarily undeveloped field.
As part of the Agreement, and as advised on 8 March 2023, the parties had also agreed to establish a collaboration in relation to CO2 EOR activities and projects in other areas in Trinidad. In parallel to the ongoing process to complete the sale of the Cory Moruga asset in Trinidad, the parties have progressed discussions seeking to re-establish partnering arrangements in relation to other assets, in particular the Inniss-Trinity field - further announcements will be made as appropriate.
In the longer term, scaling up of potential CO2 EOR operations and the creation of cost-saving operational synergies are likely to be considered by the Company subject to updating of project economics. CO2 EOR operations would initially be conducted on an individual well basis to potentially provide a contribution to Company overheads and operating costs as a Cory Moruga drilling programme progresses, subject to regulatory consents.
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