Predator Oil & Gas returns ‘very encouraging’ results from Pilot CO2 EOR Project
(PRD ) has returned ‘very encouraging’ results from its Pilot CO2 EOR Project ("Pilot CO2 EOR") in the Inniss-Trinity field onshore Trinidad.
The project is focused on a single reservoir sand of the five producing Herrera reservoirs in the Inniss-Trinity Field, the Herrera #2 Sand, and a part of the field, the "AT-4 Block", representing around 10% of the total area potentially available for CO2 EOR injection.
It is designed to demonstrate safe injection of anthropogenic CO2, to allow for sufficient lag time post-injection for reservoir pressure to stabilise and to collect oil viscosity data.
The oil and gas group intends to use the results from the project to evaluate and calibrate the pre-injection desk-top production forecast and the CO2 EOR commercial model.
The initial results, when calibrated against the pre-Pilot desktop production profile forecast for the Herrera #2 Sand, are currently predicted to be at the upper end of the P50 to P10 range (243 to 547 bopd respectively) for the three production monitoring wells in the forecasts. The results also confirmed the potential of CO2 sequestration at the project.
It saw a CO2 pressure response in 5 monitoring wells during operations which potentially warrants adding 3 additional production wells to the CO2 EOR expanded programme as insurance against any future operational issues requiring well workovers for producing wells and allowing for variations in reservoir performance in any particular production well.
Despite several challenges posed - including but not limited to, the unforeseen COVID-19 pandemic and electrical power outages influencing the efficiency of the Inniss-Trinity field operations - the objectives of the group’s Pilot CO2 EOR have been successfully achieved.
In the Pilot CO2 EOR operations, Predator said its commercial model has been strengthened by optimising operating costs and the rise in West Texas Intermediate oil price.
The company added that pre-Pilot CO2 EOR success has de-risked CO2 EOR in Trinidad and has provided the commercial, environmental and technical model for future projects.
"The excellent results from the Pilot CO2 EOR project, despite a challenging operational environment due to COVID-19, has de-risked the case for CO2 EOR and established the Company as the ground-breaking leader in CO2 EOR expertise and delivery onshore Trinidad and within the wider Caribbean region,” said Paul Griffiths, CEO of Predator Oil & Gas.
He added, “Results more than just support pre-Pilot CO2 EOR forecasts and create a solid foundation for expanding production growth over the next twelve months. Expanding our successful CO2 EOR business can be achieved by increasing production revenues and also by offering fee-paying services to other operators with profit-sharing entitlements.”
Griffiths added that PRD’s Guercif drilling plans are targeting Q2 2021 for the execution of a potentially transformational exploration well to coincide “with a time when the potential to establish a pivotal position in the Moroccan gas market has never been stronger.”
The company informed investors that “production growth, cash in the bank and restricted cash” will provide the group with the funds required to execute its 2021 work programmes.
Positive news from PRD to start 2021 is welcome and goes some way to underpinning the share price appreciation over the past three months, which has increased from 3.0p in November 2020 to open at 3.8p following this announcement. With the objectives of the Pilot CO2 EOR successfully achieved and the production profile forecast is at the upper end of the P50 to P10 range (243 to 547 bopd respectively) for the three production monitoring wells included in the forecasts, the outlook for PRD is increasing positive for 2021.
Reasons to Follow PRD
Predator has an established portfolio of assets in proven oil and gas regions and in countries in which the management team have significant operational knowledge and expertise.
A CO2 enhanced Oil Recovery project in Trinidad, which the Directors expect will provide early cash flow and CO2 sequestration capacity
Predator has established a portfolio of 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 cash flow 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 strategic gas storage and LNG imports
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.
Plans are advancing in anticipation of commencing drilling operations as early as possible in 2Q21 in expectation of an accelerated international roll-out of the COVID-19 vaccine.
Guercif offers the only near-term drilling activity with a rig in-country capable of exploiting the commercial opportunity offered by the wider Moroccan gas market. The company said the prospect’s High Estimate gross prospective recoverable gas has increased to 1,823 BCF.
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