Progress Update Trinidad

RNS Number : 6632S

Predator Oil & Gas Holdings PLC

13 March 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")

Progress Update Trinidad - Carbon Dioxide Enhanced Oil Recovery ("C02 EOR")

Highlights

·    Predator's C02 EOR operational plan for the AT-4 Block in the Inniss-Trinity oil field to be progressed;

·    Delivery window for first C02 gas sales to the Inniss-Trinity field extended to 30 April 2019 under the Heads of Agreement ("HOA") with the local C02 Supplier;

·    For guidance purposes combined scoping production rate of 300 bopd is forecast from pre-pilot reservoir engineering studies by the end of H1 2019; 

·    Operations are forecast to remain profitable at current WTI oil prices generating for guidance purposes an average of US$10/brl net back after operational and C02 costs, royalties and taxes;

Predator Oil & Gas Holdings Plc (PRD), the Jersey-based Oil and Gas Company, today provides an update on its progress onshore Trinidad.

Onshore Trinidad - Inniss-Trinity oil field Pilot C02 EOR

Heritage Petroleum Company Limited ("Heritage") has confirmed in writing to FRAM Exploration (Trinidad) Ltd ("FRAM"), a wholly owned subsidiary of Columbus Energy Resources plc ("Columbus") and the operator of the Inniss-Trinity field, that it consents to the conduct of and operational plan for the C02 EOR Pilot Project devised and to be undertaken in the AT-4 Block in the Inniss-Trinity oil field. Approval is subject to obtaining all necessary consents, including Certificate of Environmental Clearance and other similar approvals from the Environmental Management Authority as well as all requisite consents, permits and approvals from the Ministry of Energy and Energy Industries in order to undertake the C02 Pilot Project. These approvals are progressing and do not impact the current schedule of in-field activities planned over the coming weeks in preparation for C02 injection.

The window for the first C02 gas sales to be delivered to the Inniss-Trinity field site has been extended to 30 April 2019 under the Heads of Agreement ("HOA") with the local C02 Supplier to facilitate smooth integration with the operational planning for re-pressurising the reservoirs in the AT-4 Block using C02 injection.

Pre-Pilot desk-top reservoir engineering forecasts for production guidance remain as previously reported with the objective of achieving 300 bopd by the end of H1 2019, subject to validating this pre-Pilot desk-top forecast following the start-up of C02 injection and production operations.

Operations are forecast to be profitable at current WTI oil prices and to generate an average net-back of US$10/barrel after taxes, royalties and C02 and other operational costs. Scope for reducing C02 and operating costs may exist as the first production data are collected from the Pilot C02 EOR operations to help facilitate planning for economies of scale.

Capital costs of less than US$ 600,000 remain as previously guided and are funded from the set-aside cash resources of the Company.

 Paul Griffiths, Chief Executive of Predator, commented:

We are pleased to have successfully achieved this important milestone in obtaining conditional approval from Heritage for the C02 EOR Project and are grateful for the support received by Columbus over the past few months in discussions with Heritage. This will be the first C02 EOR Project for the newly created State entity and its successful execution by Predator may open the door to additional CO2 EOR projects. Predator and FRAM instigated and developed this project over the past 18 months and it is reassuring that the geological and commercial case for C02 EOR in the Inniss-Trinity field has been accepted by Heritage in granting this consent in such a timely manner. Heritage's consent means that this project will have high visibility in Trinidad and internationally and we are excited about the potential opportunities that this may create to enhance our revenue-generating capabilities for our shareholders based on the C02 EOR expertise that the Company is developing."

This announcement contains inside information for the purposes of Article 7 of the Regulation (EU) No 596/2014 on market abuse

For more information please visit the Company's website at www.predatoroilandgas.com

or contact: 

Enquiries:

Predator Oil & Gas Holdings Plc Paul Griffiths, Chief Executive Officer Sarah Cope, Non-Executive Chairman		Tel: [phone] [e-mail]
Novum Securities Limited (Broker ) Jon Belliss		Tel: [phone]
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Notes to Editors:

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 a 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 and east of the Kinsale gas field and Barryroe oil field in the Celtic Sea.

The Company has a highly experienced management team with a proven track record in the oil and gas industry.

 

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