Predator Oil & Gas Holdings PLC Trinidad Progress Update (4292E)
04 Julio 2019 - 01:00AM
UK Regulatory
TIDMPRD
RNS Number : 4292E
Predator Oil & Gas Holdings PLC
04 July 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")
And Competent Person's Report
HIGHLIGHTS
-- Certificate of Environmental Clearance issued
-- Well completion design updated to potentially reduce costs and enhance economics
-- Well workovers AT-4 and AT-5X to begin shortly
-- CPR gives contingent, development pending, resources of 5.3 to 8.9 MM bo
Predator Oil & Gas Holdings Plc (PRD), the Jersey-based Oil
and Gas Company, today provides an update on its progress onshore
Trinidad.
Environmental Certificate
The Environmental Management Authority ("EMA") has issued a
Certificate of Environmental Clearance ("CEC") to Fram Exploration
Trinidad Ltd. ("FRAM"), the operator of the Inniss-Trinity field
and a wholly-owned subsidiary of Columbus Energy Resources PLC,
approving the injection of locally-sourced carbon dioxide ("C02
EOR"). The CO2 will be provided through arrangements developed and
progressed exclusively by Predator. Subject to further
consultations with Heritage Petroleum Company Ltd. and obtaining
requisite consents, permits and approvals from the Ministry of
Energy and Energy Industries C02 EOR operations can commence in the
AT-4 Block within the Inniss-Trinity oil field.
Operational Planning
During the period awaiting the issue of the CEC Predator has
maintained a very low level of expenditure which has been targeted
at achieving an optimum well completion design for the AT-4 and
AT-5X wells. The focus has been to potentially isolate downhole
individual Herrera reservoir sands for a C02 injectivity test to
determine the extent to which reservoir sands can be separately
repressured and what maximum initial oil flow rate can be achieved
for comparison with the Base Line Production Rate for these
wells.
The new completion design will concentrate the C02 injection
into only the most productive sands to potentially accelerate the
rate of reservoir pressure build-up and reduce the volumes of C02
required to achieve initial oil production. This should enhance
project economics, if the operational plan is successfully executed
and the reservoirs perform according to the desk-top reservoir
engineering models, and underpin the guidance on potential
net-backs per barrel as previously announced despite the lower oil
prices currently being experienced.
Data collected from monitoring the AT-4 and AT-5X wells during
injection and production will help assess the potential for
reservoir communication and are required for planning the upscaling
of operations to a full-field C02 EOR Project.
Next Step
FRAM will shortly use a workover rig to survey downhole the AT-4
and AT-5X wells to ensure there are no obstructions that would
prevent Predator's downhole completion design from being installed
across the Herrera sand interval chosen for the first injectivity
and production test.
A further operational update will be issued once the downhole
well survey results are available.
Competent Person's Report
A Competent Person's Report ("CPR") contingent resources audit
has been carried out by SLR Consulting (Ireland) Ltd. ("SLR")
taking into account the new reservoir engineering forecasts and
operational plan for the proposed AT-4 Block Pilot C02 EOR
Project.
The following table summarises the range of total gross and net
audited Inniss-Trinity contingent resources:
Table 1 Contingent Resources Inniss-Trinity
Gross
------------------ --------------------------------------------- --------- ------------------
Inniss-Trinity Low Estimate Best Estimate High Estimate Operator Chance
Field of Commerciality
------------------ ------------- -------------- -------------- --------- ------------------
OOIP (MM bo) 89 68 89 FRAM
------------------ ------------- -------------- -------------- --------- ------------------
Recovery Factor 6% 10% 10% FRAM
------------------ ------------- -------------- -------------- --------- ------------------
Gross Contingent C02 EOR
Resources Development
(MM bo) 5.3 6.8 8.9 FRAM Pending
------------------ ------------- -------------- -------------- --------- ------------------
Predator has the exclusive right to purchase FRAM through a
Share Purchase Agreement on or before 31(st) December 2019 for
US$4.2 MM.
If the C02 EOR Pilot is successful FRAM will pay Predator 100%
of the Market Value (less agreed costs and deductions) of any
enhanced crude oil production until full cost recovery, following
which net proceeds will be split 50/50.
Paul Griffiths, Chief Executive of Predator, commented:
We are pleased to have successfully achieved another important
milestone by obtaining the Certificate of Environmental Clearance
for the C02 EOR Pilot Project. Shareholders will understand that
compliance with the very highest environmental standards is an
important pre-requisite for the fossil fuel industry to enable
projects to progress to the operational phase. Operational planning
is progressing well and well workovers will commence shortly. The
new CPR provides an estimate of the Contingent Resources for the
Inniss-Trinity field if the C02 EOR Pilot Project is successful. In
this instance, and on an assumption that Predator exercises its
option to buy FRAM, Predator would be acquiring resources for
significantly less than US$1.0/brl.
Enquiries:
Predator Oil & Gas Holdings Tel: +44 (0)1534 834600
plc
Paul Griffiths, Chief Executive
Officer
Sarah Cope, Non-Executive Chairman
Brandon Hill Capital Tel: +44 (0)20 3463 5000
Jonathan Evans / Oliver Stansfield
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
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, for
which Successor Authorisations have been applied for, 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. A Successor Authorisation has been granted for the
Celtic Sea asset whilst the result of an application for a Frontier
Exploration Licence over the Slyne Basin exploration asset is is
pending.
Predator is operator of the Guercif Petroleum Agreement onshore
Morocco which is initially prospective for Tertiary gas in
prospects less than 10 kilometres from the Maghreb gas
pipeline.
The Company has a highly experienced management team with a
proven track record in the oil and gas industry.
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END
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