Last checked at 27 Jan 2020 07:00
FOR IMMEDIATE RELEASE
27 January 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"), that the first injection of CO2 into the Inniss-Trinity field has been successfully achieved.
Paul Griffiths, Chief Executive of Predator, commented:
"This is an important operational milestone in the development and execution of our Pilot CO2 EOR project with Columbus. Pilot CO2 EOR is important to Predator for the potential to provide both near term revenues and future growth in revenues. The first injection of CO2 is a practical demonstration of our core commitment to sustainability and helping to reduce CO2 emissions through sequestration in Trinidad. I look forward to updating the market as to further progress of the Pilot CO2 EOR in due course."
Background - Trinity Inniss CO2 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 CO2 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 CO2 as is required to fully evaluate the potential of CO2 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 will help plan and fund the Pilot CO2 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 |
Enquiries:
Predator Oil & Gas Holdings plc Paul Griffiths Chief Executive Officer Carl Kindinger Non-Executive Chairman
| Tel: +44 (0)1534 834600 |
Novum Securities Limited Jon Belliss
Optiva Securities Limited Christian Dennis
|
Tel: +44(0) 207 399 9425
Tel: +44(0) 203 137 1902 |
|
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 also operator of the Guercif Petroleum Agreement onshore Morocco which is prospective for Tertiary gas in prospects less than 4 kilometres from the Maghreb gas pipeline, and deeper Triassic gas. A well location has been selected for drilling in 2020 and a rig option agreement has been signed with Star Valley.
In addition, Predator also operates exploration and appraisal assets in 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. Ireland however remains a very challenging regulatory environment for business investment in the oil and gas sector and is not the immediate focus of the Company's near-term operations.
The Company has a highly experienced management team with a proven track record in the oil and gas industry.