Predator Progresses On Operational Planning For Advanced Oil Recovery

LONDON (Alliance News) - Predator Oil & Gas Holdings PLC on Thursday said operational planning to ...

Alliance News 6 December, 2018 | 4:04PM
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LONDON (Alliance News) - Predator Oil & Gas Holdings PLC on Thursday said operational planning to begin enhanced oil recovery operation at its Inniss-Trinity oil field in onshore Trinidad is progressing well.

Predator engages in developing enhanced oil recovery opportunities using carbon dioxide injection in Trinidad.

The company said it intends to use carbon dioxide injection pumps to increase production at Inniss-Trinity and expects an initial oil production rate in the first half of 2019 of between 318 and 292 barrels per day.

Delivery of the pumps from a US supplier is scheduled for January. The combined existing production rate from the Inniss-Trinity wells included in the pilot project is 45 barrels of oil per day.

This means that the minimum initial oil production expected using the pumps is six times higher than current levels.

Including capital expense, which Predator said is fully funded, the break-even enhanced oil production rate in the first year for the project is 110 barrels of oil per day based on a USD55 per barrel spot price.

Cash flow from operations is to begin in the first half of 2019.

Predator said is has taken the "precautionary step" of hedging US dollars at USD1.32 per GBP1.00 to cover is forecast capital expenditure for the carbon dioxide project.

Predator has also submitted its application to extended its offshore Ireland Ram Head licensing option 16/30 in the Celtic Sea.

A reservoir engineering study, according to Predator, shows potential development of Ram Head through ten wells capable of recovering more than 1 trillion cubic feet of gas in 11 years.

Ongoing discussions for farm-in partners with an interest in Preadtor's Irish assets are set to accelerate in January and Predator is looking to combine its assets into a "low risk drilling and re-entry programme in 2020".

Finally, in onshore Morocco, plans for drilling are to begin in 2019, the company having reported government acceptance of its hydrocarbon exploration licence application. A formal awarding of the licence is expected to follow.

"The company has now consolidated sufficiently material early stage gas assets capable of being linked to the European gas market to provide an attractive commercial proposition for larger industry players and infrastructure owners, whether it be through farm ins, or by acquisition of equity in the assets, or in the subsidiary Predator companies holding the assets," said Predator Chief Executive Paul Griffiths.

Shares in Predator were up 0.6% at 6.84 pence on Thursday.

By Anna Farley; annafarley@alliancenews.com

Copyright 2018 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar
Rating
Predator Oil & Gas Holdings PLC Ordinary Shares 8.78 GBX 0.39 -
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