Predator enters extended phase for Pilot CO2 Project in Trinidad
(LSE:PRD ) said it has received all approval procedures necessary to enter into the extended phase of CO2 injection and oil production for its Pilot CO2 EOR Project.
The Company received a WO1 Approval Notification for the restoration, by means of a well workover, of the AT-5X CO2 injection well to oil production by the Ministry of Energy and Energy Industries ("MEEI")
The Company also updated investors that approval has also been granted by the MEEI to commence injecting CO2 into the AT-13 well in the AT-4 Block in the Inniss-Trinity field.
Predator previously won approval from the MEEI for the commissioning and use of its CO2 Recovery system at the FRAM Exploration Gathering Station #4 in the Inniss-Trinity field.
Portable Predator wholly-owned CO2 EOR injection/production equipment
CEO, Paul Griffiths, described this type of approval as “an important development” that will allow the Company to separately process enhanced oil production from CO2 Enhanced oil recovery (“EOR”) operations for sale and export through the existing pipeline infrastructure.
Commenting on this morning’s news, Griffiths said, "The announcement today completes the approval procedures necessary for entering into the extended phase of CO2 injection and simultaneous oil production for the Pilot CO2 EOR Project.”
He added, “We are pleased to have progressed matters to completion despite the COVID-19 constraints. We are demonstrating our ability to work together with our excellent in-country team of partners to maintain operational progress through adversity to deliver results."
Predator noted in its half-year report for H120 that it holds £2.098m of cash and restricted cash for its investment in the Pilot CO2 EOR project meaning it is fully funded in Trinidad.
Despite COVID-19 restrictions, 380 metric tonnes of CO2 were injected from May 18 until June 18 2020 into the AT-5X well in the AT-4 Block to reach another “important milestone” to fulfil Phases 1 and 2 of the Pilot CO2 EOR Project, the company recently told investors.
Up until September 2020, Predator accumulated 1,047 barrels of enhanced oil production with ‘no evidence of CO2 leakage to the atmosphere' recorded by the CO2 surface monitors.
Shares in Predator Oil & Gas have traded within a range of 2.80p and 3.50p over the past two weeks to open 3.28% higher this morning at 3.15p following the announcement.
has rapidly established a portfolio of attractive assets in proven oil and gas regions and in countries in which the management team have significant operational knowledge and expertise. The portfolio consists of:
- A CO2 enhanced Oil Recovery project in Trinidad, which the Directors expect will provide early cashflow and CO2 sequestration capacity
- An exciting and material gas exploration project onshore Morocco adjacent to a major gas pipeline; and
- 2 significant gas exploration and appraisal projects offshore Ireland close to existing infrastructure with the potential to utilise infrastructure for statraegic gas storage and LNG imports
This announcement therefore marks a key milestone for Predator in Trinidad whereby enhanced oil production, in response to CO2 injection at AT-5X, in the above CO2 EOR monitoring well, between 19 July to 31 August 2020 represented an increase of 99% on pre-injection primary production rates.
Predator recently submitted plans to commission a non-fixed, floating LNG offshore facility with the potential to develop “Europe’s largest gas storage facility” to contribute to Ireland’s security of energy supply as a pragmatic solution to the transition towards a “soft landing” renewable energy economy that protects jobs and the economy; facilitates tax revenues; and is sensitive to reducing CO2 emissions by gas replacing oil and coal and securing infrastructure and storage sites for longer term CO2 sequestration. Its proposed LNG FRSU project will be located at Ireland's first commercial gas find, the Kinsale gas field, which is close to being decommissioned after 40 years in operation. The Company recently set a target for achieving first gas deliveries from its proposed floating LNG import terminal off the coast of Ireland in 2024.
In Morocco, Predator maintains a drill-ready status for the MOU-1 Prospect at Guercif and can reinstate the operational planning and execution once COVID-19 restrictions are lifted.
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