Predator Oil & Gas Holdings plc said it had started a litigation process over the £591,065 FRAM loan for its Inniss-Trinity carbon dioxide enhanced oil recovery (CO2 EOR) project in Trinidad.
FRAM
The company signed an agreement with FRAM Exploration Trinidad Ltd which is a wholly owned subsidiary of Challenger Energy Group plc.
Predator added that Challenger terminated the CO2 EOR project “prematurely and unilaterally on 1 August 2021”.
LITIGATION
The company added that the litigation process would involve three areas where it is seeking recompense.
These include the FRAM loan; full repayment of its project costs; and “substantial consequential losses”.
Predator said it had failed to receive from either FRAM or Challenger any firm proposals to allow an amicable settlement to be reached.
“Unilateral termination of the CO2 EOR project by Challenger without consultation with stakeholders and regulatory authorities deprived the company of the mechanism to recover its project costs,” added Predator today.
The company said it had also “lost its ability to potentially recover 853,000 barrels of oil from the AT-4 Block through expansion of the CO2 EOR project.”
MISINFORMATION
Executive chairman Paul Griffiths added that, in view of the scale of opportunity lost at Inniss-Trinity, Predator had no alternative but to start the litigation process.
“Even more significantly it is important to stifle misinformation that could potentially delay the accelerated roll-out of new CO2 EOR projects in Trinidad.”
NEW PROJECTS
Mr Griffiths said that Predator had met stakeholders to discuss the dispute with Challenger and to roll out up to six new CO2 EOR projects onshore Trinidad including the potential for a miscible CO2 flood.