Jersey-based Predator Oil & Gas (AIM:PRD ) said ministry consent has now been received to enable the start of continuous injection of CO₂ in the Trinity Inniss field located in Trinidad.
The group said Columbus Energy Resources (LON:CERP), its JV partner, was granted approval from the Ministry of Energy and Energy Industries (“MEEI”) to commence CO₂ operations.
The term of the Inniss-Trinity Incremental Production Service Contract ("IPSC") was previously extended to allow for the implementation of a pilot CO₂ enhanced oil recovery.
The first tranche of CO₂ has been injected into the AT5X well and over time is expected to contribute “to the determination of any impact on enhancement of production in offset wells to AT5X.”
The site will now be injected for a 90 day period and will allow the maximum CO₂ injection rate and pressure - as determined by the reservoir engineering forecasts - to be achieved.
Shares in Predator Oil & Gas were trading flat at 2.6p during Wednesday morning.
Further tranches of CO₂ will be injected to fully evaluate the potential of CO₂ injection to increase oil production from the offsetting wells in the AT-4 Block, which is the site of the initial CO₂ pilot.
Predator’s CEO, Paul Griffiths, said this will allow the firm to increase “its ability to sequestrate anthropogenic CO₂ whilst accelerating the point at which revenues are generated.”
“Enhancing the scale of return on investment can be achieved by maximising well deliverability,” commented Griffiths.
Predator will help plan and fund the CO₂ EOR and in return will receive 100% recovery of its project costs from the EOR’s profits from oil sales, and thereafter 50% of all profits attributable to the EOR.
The company further acknowledged that the increasing of CO₂ injection volumes would contribute towards its near-term goal of developing a carbon-neutral energy business.
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