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Columbus Energy and Predator kick-start gas injection at Trinity Inniss field

09:35, 27th January 2020
Francesca Morgan
Company News
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London-listed Columbus Energy Resources (AIM:CERP) FOLLOW and Predator Oil & Gas (AIM:PRD) FOLLOW, partners in the enhanced oil recovery project in Trinidad, said they have successfully injected the first tranche of CO₂ at the Trinity Inniss field.

In a morning statement, Columbus informed investors that it had injected the first tank of CO₂ into well AT5X in the field and will, over time, determine the impact for enhanced production in offset wells to AT5X.

“The CO₂ project is an important enhanced oil recovery project for both the Company and Trinidad,” said Leo Koot, Executive Chairman of Columbus.

The addition of CO₂ via EOR technique increases the overall pressure of an oil reservoir, forcing the oil towards production wells.

CERP price chart

Columbus is partnered with fossil fuel group, Predator Oil & Gas, in the EOR joint venture and together will proceed to continuous injection of CO₂, the statement detailed.

Predator is funding the joint venture with the option to acquire Columbus’ interest in the Inniss-Trinity field for $4.2m with a deadline of 30 September 2020.

In a separate statement, Paul Griffiths, Chief Executive of Predator, identified the EOR pilot project as having reached “an operational milestone.”

He said, “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.”

Shares in Predator Oil & Gas were trading 1.65% higher at 6.15p on Monday morning.

PRD price chart

Carbon sequestration, or the removal of CO₂, is considered a long-term storage solution of the gas to either mitigate or defer global warming and avoid dangerous climate change.

Carbon negative oil, whilst dependant on the boundaries of analysis and CO₂ origins, could help reduce emissions from ‘hard-to-decarbonise sectors’ that are traditionally dependent on energy-dense fuels, said Senior Energy Analyst, Christophe McGlade at the International Energy Agency.

According to the IEA’s new global database of EOR projects, about 500,000 oil barrels are produced daily using CO2-EOR, representing around 20% of total oil production from EOR.

In a previous November statement, Columbus Koot said the sequestration project would give both parties “valuable insight” into alternative EOR and had the potential to transform oil & gas operations in the Inniss-Trinity field and in similar fields across Trinidad. 

In an 2018 Annual Report, Predator identified that a successful Pilot CO₂ EOR could “unlock further upside” and that given the company’s “exclusivity” in CO₂ supply, would put the company in “pole position” as the implementer of CO₂operations in Trinidad.

Follow News & Updates from Columbus Energy Resources here: FOLLOW and Predator Oil & Gas here: FOLLOW

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The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.

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