Page 14 - NorthAmOil Week 11 2022
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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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