FOR IMMEDIATE RELEASE
12 November 2019
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")
CO2 EOR Trinidad Update
Highlights
· Stepping stone to the goal of a lower carbon footprint for Trinidad
· Extension of the Columbus Inniss-Trinity IPSC from January 2020 to 31 December 2021
· CO2 EOR replaces the drilling of 7 development wells
· Recognition of the significance of the Pilot CO2 EOR Project
Predator Oil & Gas Holdings Plc (PRD), the Jersey-based Oil and Gas Company with operations in Trinidad, Morocco and Ireland, provides the following update about the Pilot CO2 EOR Project in the Inniss-Trinity field using injected CO2.
Inniss-Trinity Incremental Production Service Contract ("Inniss-Trinity IPSC") Extension
Columbus Energy Resources PLC ("Columbus") has today announced the extension of the Inniss-Trinity IPSC to allow for the implementation of the Pilot CO2 EOR Project and the substitution of the existing minimum work obligations for the drilling of 7 development wells with the Pilot CO2 EOR Project.
The two-year extension from January 2020 to 31 December 2021 was a condition precedent to the Well Participation Agreement between FRAM Exploration Trinidad Ltd., a wholly owned subsidiary of Columbus, and Predator, as amended effective 31 May 2018 to facilitate the replacement of infill drilling by a Pilot CO2 EOR Project of sufficient duration to allow for an extended period of potential enhanced oil production and analysis of the production data.
Project Costs and Supplementary Petroleum Profit Tax ("SPPT")
The CO2 EOR Project costs, given the regulatory classification of the investment, are able to be offset against SPPT by FRAM, thereby improving project economics attributable to the Well Participation Agreement.
Well Participation Agreement ("WPA") amendment
The WPA has been further amended to extend the period to acquire FRAM under the terms of the WPA to 30 September 2020, or 30 June 2020 should CO2 injection in accordance with Phase 2 of the work programme for the extension to the IPSC not occur.
Operations schedule
Initial results from the Pilot CO2 EOR Project are expected in Q1 2020 as previously guided.
The CO2 Delivery System designed by Predator for Inniss-Trinity is scheduled to be assembled and tested by Massy in their work yard during December 2019 before moving to the Inniss-Trinity site.
Paul Griffiths, Chief Executive of Predator, commented:
"We are pleased that the extension to the IPSC has been secured by Columbus. It is a recognition of the importance of this project not only to the potential enhancement of Trinidad's onshore oil production from mature oil fields if successful, but also for the potential to sequestrate significant CO2 volumes to advance a reduction in Trinidad's carbon footprint. The Company and its partners have worked hard to coordinate and develop all aspects of this project to give the best opportunity for a successful outcome. It is rare for a company of Predator's size to create and fill a niche position outside of the USA in the field of CO2 EOR. That it has only taken 18 months to reach this position from scratch is remarkable. We now look forward with excitement to the beginning of operations that will evaluate whether or not the benefits of CO2 EOR will be transformational to the onshore oil industry in Trinidad."
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 Bellis |
Tel: +44(0) 207 399 9425 |
Follow us also on VOX Market https://www.voxmarkets.co.uk/ This announcement contains inside information for the purposes of Article 7 of the Regulation (EU) No 596/2014 on market abuse |
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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 operator of the Guercif Petroleum Agreement onshore Morocco which is prospective for Tertiary gas in prospects less than 10 kilometres from the Maghreb gas pipeline, and deeper Triassic gas. A well location has been selected for drilling in early 2020 and discussions with rig contractors are progressing.
Predator is an oil and gas exploration company with the objective of participating with FRAM Exploration Trinidad Ltd. in further developing the remaining oil reserves in the producing Inniss Trinity oil field onshore Trinidad, primarily through the application of C02 EOR technology. Potential for cash flow exists by executing the Pilot Enhanced Oil Recovery project using locally-sourced carbon dioxide for injection into the oil reservoirs ("C02 EOR"). Near-term expansion and growth potential is focussed on upscaling the C02 EOR operations in the Inniss-Trinity oil field and potential acquisitions of assets suitable for C02 EOR development, subject to all necessary approvals.
In addition, Predator also owns and operates exploration and appraisal assets in current licensing options offshore Ireland, adjoining Shell's Corrib gas field in the Slyne Basin on the Atlantic Margin, for which a Successor Authorisation has been applied for, and east of the Kinsale gas field in the Celtic Sea, where a Successor Authorisation has also been applied for by the Company.
The Company has a highly experienced management team with a proven track record in the oil and gas industry.
