Predator Oil & Gas Holdings plc expects to start receiving revenues from its new 51% holding in the operator of the Bonasse field in the Southwestern Peninsular, Trinidad.
TECHNOLOGY
The $170,000 investment in Caribbean Rex Ltd adds to Predator’s existing country assets of the Cory Moruga oil field, containing the Snowcap discovery, and its extension, Moruga West.
Caribbean Rex is currently restoring to production seven existing shut-in wells in Bonasse ahead of generating revenue.
The acquisition includes the field’s storage tanks some of which Predator plans to use for workovers and eventual field development of Cory Moruga, so avoiding costs of purchasing production facilities.
The company, which first evaluated the project in 2015, said that Bonasse was suitable for patented new SGN Technology chemical wax treatments that could be a ‘game changer’.
The wax treatments are due to be used for the Jacobin-1 workover on Cory Moruga to “enhance recovery and oil flow rates” and will be the technology’s first use in Trinidad.
Legacy analysis of the Bonasse well drainage areas indicate a typical drainage area of 4.5 acres per well and a STOIIP volume of 382,500 barrels of 22.8 API oil, added Predator.
The field’s production licence expires in 2039 and has no remaining work commitments.
Caribbean Rex and its subsidiaries will have $5.3m tax losses, which Predator said it could amalgamate with tax losses of its own local subsidiary T-Rex Resources (Trinidad) Ltd.
Chief executive Paul Griffiths added that production income could be reinvested in further field development if the new technology proved to be successful.
“Growing an income in United States dollars will provide some protection against the weakness of the United Kingdom currency at this time.”
Predator’s local subsidiary T-Rex Resources (Trinidad) Ltd acquired the majority holding in Caribbean Rex.
Previous owner Challenger Energy Group sold Caribbean Rex in 2023 to a Trinidadian oil services company.