Predator Oil & Gas Holdings (AIM:PRD ) has highlighted operational progress across its main assets during 2020 despite the challenges posed by the ongoing COVID-19 pandemic.

The Jersey-based Oil and Gas firm said it has successfully executed its Pilot CO2 EOR Project in Trinidad with 380 metric tonnes of CO2 successfully injected during the period.

One month from cessation of the initial CO2 injection, oil production rose sharply in a CO2 EOR monitoring well. Production was sustained at an average rate 88% higher than the average rate for the CO2 EOR monitoring well in the month prior to the start of injection.

The group said enhanced incremental oil production for the single CO2 EOR monitoring well is estimated to be around 2,200 barrels of oil since the commencement of CO2 injection.

In 2021, Predator will continue its CO2 injection at the AT-13 well and observe impact on the monitoring well, evaluate the potential to progressively add CO2 EOR production wells based on AT-13 CO2 EOR injection performance, as well as further reducing its operational costs. 

Predator will continue discussions with potential joint venture partners to focus on capitalising on the value of the success of the Pilot CO2 EOR project. It will also continue discussions with the Ministry of Energy and Energy Industries in regard to green fiscal incentives.

‘Sequestering CO2 in Trinidad is consistent with our goal of contributing to reducing CO2 emissions, now a vitally important investment ingredient for third party financing of infrastructure projects in our part of the energy sector,’ the company informed investors.

At Predator’s Guercif programme in Morocco, the group saw a 92% increase in gross prospective gas resources with a clear pathway to drilling and for potential early monetisation.

The company highlighted that it has identified the prospect as ‘commercially viable’ due to low cost of onshore drilling and development, the proximity to existing energy infrastructure, as well as the short lead time to a potential declaration of commerciality post-drilling.

It said Guercif has ‘multiple potential options’ to monetise including, amongst other options, satisfying Morocco's entire current gas requirement for gas-fired power generation.

During 1Q21, PRD plans to finalise the MOU-1 drilling programme and well services and to optimise its synergies with SDX Energy based on MOU-1 being the first well to be drilled.

PRD said it will continue discussions with a European entity regarding a joint venture in order to finance early development of Guercif gas for the compressed natural gas market.

“The key takeaway from the prospective resources upgrade at Guercif is that it underpins and increases the diversity of the options to monetise the gas both in-country and, in the upside case, for export,” said Paul Griffiths, Chief Executive Officer of Predator Oil and Gas.

He added, “With this material upgrade in prospective Guercif gas resources, we have taken all pre-drill steps necessary to ensure that we can attract finance to fast-track gas appraisal and development at Guercif following a successful short-term outcome to the MOU-1 drilling programme."

Meanwhile, in Ireland, the company continues to target first gas deliveries from its proposed floating Liquefied Natural Gas (LNG) import terminal off the coast of the country in 2024.

The group highlighted that it has executed an NDA with an unnamed significant global LNG player and a leading European finance broker for infrastructure deals while it said work continues to commence in regard to gathering material to support regulatory approvals.

In its forward programme for 1Q21, Predator intends to complete its application for a Floating Regasification and Storage Unit vessel ("FRSU") inclusion to establish an offshore LNG opportunity for Ireland to import LNG that does not use shale gas as a LNG feedstock.

Paul Griffiths, CEO of Predator Oil & Gas Holdings, described the FSRU LNG project as one that is gaining the company “access to global players in the downstream energy business.”

Shares in Predator Oil and Gas have traded within a range of 3.12p and 4p over the past month to open 7.25% lower this morning following the announcement.

Reasons to Follow Predator Oil and Gas

Predator has an established portfolio of assets in proven oil and gas regions and in countries in which the management team have significant operational knowledge and expertise.

A CO2 enhanced Oil Recovery project in Trinidad, which the Directors expect will provide early cash flow and CO2 sequestration capacity

Predator has established a portfolio of assets in proven oil and gas regions and in countries in which the management team have significant operational knowledge and expertise. The portfolio consists of:

A CO2 enhanced Oil Recovery project in Trinidad, which the Directors expect will provide early cash flow and CO2 sequestration capacity

  • An exciting and material gas exploration project onshore Morocco adjacent to a major gas pipeline; and
  • 2 significant gas exploration and appraisal projects offshore Ireland close to existing infrastructure with the potential to utilise infrastructure for statraegic gas storage and LNG imports

Predator recently submitted plans to commission a non-fixed, floating LNG offshore facility  with the potential to develop “Europe’s largest gas storage facility” to contribute to Ireland’s security of energy supply as a pragmatic solution  to the transition towards a “soft landing” renewable energy economy that protects jobs and the economy; facilitates tax revenues; and is sensitive to reducing CO2 emissions by gas replacing oil and coal and securing infrastructure and storage sites for longer term CO2 sequestration. 

Its proposed LNG FRSU project will be located at Ireland's first commercial gas find, the Kinsale gas field, which is close to being decommissioned after 40 years in operation. 

The Company recently set a target for achieving first gas deliveries from its proposed floating LNG import terminal off the coast of Ireland in 2024.

In Morocco, Predator maintains a drill-ready status for the MOU-1 Prospect at Guercif and can reinstate the operational planning and execution once COVID-19 restrictions are lifted. 

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