Predator Oil & Gas (PRD) specialises in upstream exploration, appraisal and development of oil and gas projects, with assets in Trinidad and Republic of Ireland.
The company released an operational update of its Onshore Trinidad Inniss-Trinity oil field Pilot, where an initial reservoir engineering assessment independently validated the feasibility of the technical case for its carbon dioxide enhanced oil recovery (C02 EOR) operations.
The combined scoping production rate of 300 barrels of oil per day forecast for the initial two wells was greater than 6 times selected current well production rates.
Furthermore, independent estimates of daily C02 injection rates were 35% less than management estimates: which will reduce anticipated operating costs.
Incremental resources for the Pilot target are estimated at 859,000 barrels, an incremental recovery factor of 12.3%.
Assuming the Pilot were to be replicated throughout the field, management's estimates of potential recoverable resources for field-wide C02 EOR range from 8.12 million barrels to 15.62 million barrels.
There is potential for a significant upscaling to other parts of the Inniss-Trinity field based on current expectations of forecast available C02 Supply.
Start-up capital costs were reduced to less than US$ 600,000, well below the Company's budgeted cash, and net-back after taxes and costs forecast to be in the range of US$10 - 12 per barrel based on an un-escalated WTI Spot Price of US$73.25 per barrel.
The exclusivity period with a local C02 supplier to enter into a gas sales agreement has been extended to 30 Nov 2018 with a deadline for deliveries extended to 31st January 2019.
A target of Q1 2019 has been set for first incremental production from Pilot C02 EOR operations.
Paul Griffiths, Chief Executive of Predator, commented: "We are absolutely delighted with the results of the Initial Reservoir Engineering Assessment as it tangibly confirms our long-held belief that C02 EOR is the way to enhance oil recovery at commercial rates from Trinidad's mature oil fields.”
Below is an exclusive early listen to the Vox Markets Podcast which features Paul Griffiths speaking about the update.
The company was up 11% to 7.3p a share by market close day of announcement.
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