Page 14 - NorthAmOil Week 11 2022

NorthAmOil NEWS IN BRIEF NorthAmOil

in both Canada and the United States and ENERGY TRANSITION Donaldsonville and lower Plaquemines
resulted in improved activity for both Akita’s Parish.
Canadian and US operations. The company’s Denbury enhances Denbury also executed a new pore space
focus in 2021 shifted towards rig reactivations agreement adjacent to the acreage leased
and positioning Akita’s fleet to participate industry-leading carbon under the company’s recently announced
fully in the 2022 drilling year that was agreement near Donaldsonville, Louisiana.
anticipated to be strong and which is already sequestration portfolio This new agreement expands the potential
off to a favourable start with the active rig volume of CO2 that the company estimates
count in the US crossing above 600 active with new agreements can be sequestered at the combined site to
rigs in early January and industry utilisation more than 220mn metric tons, approximately
in Canada above both 2019, 2020 and 2021 in Louisiana’s industrial a 50% expansion to the original site. The
levels at the start of 2022. The company spent combined 11,000-acre site is located less
$16,416,000 on capital expenditures in 2021 corridor than 10 miles from the Company’s existing
(compared to $7,793,000 in 2020) primarily CO2 pipeline infrastructure, and there are
at the end of the year on rig reactivations and Denbury today announced three new lease approximately 30mn metric tons of CO2
Level-4 inspections that enabled it to activate agreements with large private landowners currently emitted annually within a 20-mile
eleven rigs in Canada to start 2022, compared in Louisiana, securing additional exclusive radius of the site.
to eight rigs operating in Canada in the month rights to develop significant carbon dioxide Chris Kendall, Denbury’s president and
of January during each of the previous three (CO2) sequestration projects in high quality, chief executive officer, commented: “These
years. Similarly, the company operated a total high-capacity reservoirs underlying deep agreements further cement Denbury’s
of thirteen rigs in the US in January of 2022, sealing formations along the state’s industrial position as the definitive leader in CCUS, and
compared with nine the year prior. corridor. we are continuing to advance negotiations
Linda Southern-Heathcott, Akita’s Two of the agreements cover a contiguous with multiple industrial partners whose
executive chair and chief executive officer area of approximately 84,000 acres located captured emissions would be stored in these
stated: “Coming off collapsed oil and gas approximately thirty miles southeast of New sites. Today, through our unrivalled CO2
commodity prices and low activity levels that Orleans, Louisiana. Denbury estimates this pipeline infrastructure and enhanced oil
characterised the prior year, 2021, in many site will provide more than 500mn metric recovery operations, Denbury is uniquely
ways, was a year of recovery for the company. tons of potential CO2 sequestration capacity. able to provide transportation and certainty
Capital was spent to reactivate rigs that had The company plans to initially connect of storage capacity for captured industrial
been idle and utilisation levels improved emissions from nearby industrial facilities CO2 emissions. Looking forward, we are
materially for the both Akita’s Canadian and to this site, with future plans for a pipeline poised for continued growth and success in
US divisions. Despite improving activity connection to the company’s Green Pipeline the emissions-intensive Gulf Coast region, as
levels, low day rates persisted throughout in Donaldsonville, Louisiana. The planned we significantly expand our storage capacity
most of the year while supply chain pipeline route is within 10 miles of multiple through the addition of a diverse portfolio
disruptions increased the cost of operations. industrial sources that collectively emit over of sequestration sites, exemplified by the
However, by the end of 2021 it became clear 20mn metric tons of CO2 annually. The agreements announced today.”
that industry fundamentals were improving, company believes that this site will provide DENBURY, March 16, 2022
and we are working to secure day rate an economic, large-scale solution for the
increases throughout 2022. We expect 2022 to transportation and permanent sequestration
continue to strengthen through the year.” of captured industrial emissions along
AKITA DRILLING, March 14, 2022 the Louisiana industrial corridor between

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