Heritage Petroleum Company has confirmed to FRAM (CERP subsidiary) as operator of the Innis-Trinity field in Trinidad that it has given consent to the conduct and operational plan for the CO2 EOR project on the AT-4 block on the field. Predator has the right to buy FRAM from CERP for $4.2m.

This means that Predator’s operational plan for the block can be progressed, the delivery window for first CO2 gas sales to the field has been extended to 30th April and agreed with the supplier. Guidance has been issued at a combined scoping production rate of 300 b/d by the end of 2019.

Predator say that operations ‘ are forecast to remain profitable at current WTI oil prices generating an average of $10/brl net back after operational and CO2 costs royalties and taxes. It should be borne in mind that scope for reducing CO2 and operating costs may exist as the initial prod data is collected from pilot operations and thus facilitate planning for economies of scale. Capital costs of less than $600,000 remain as previously guided and are funded from the set-aside cash reserves of the company.

This is indeed an ‘important milestone ‘ as described by CEO Paul Griffiths and with which I concur. The fact that Heritage has validated the technical and commercial model for CO2 EOR is good news from a third party and one who is the largest holder of mature onshore producing fields on the island.

Predator are in an incredibly strong position here, with a successful pilot they can upscale very profitably, the Government has clearly endorsed the strategy to boost onshore production and PRD has exclusivity over CO2 supply. All in all very good news for Predator shareholders and this stock is very much on the radar screen.

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2 comments on “Predator/Columbus
  1. William Harris says:

    I would like to subscribe to mailing list
    Thank you

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