Page 18 - LatAmOil Week 29 2020

LatAmOil NEWS IN BRIEF LatAmOil

Columbus are currently in a proposed merger these will not be executed at unrealistic prices as the North and Northeast regions of Brazil, with
that under the Scheme Document prevents the management believes that specific assets can be installed capacity of 75mn cubic metres per day.
disposal of any material asset. enhanced in value only through the application The group formed by ENGIE and CDPQ has
Accordingly, Predator will progress discus- of its particular skill sets and proven track record a 90% stake in TAG, acquired from Petrobras in
sions further with Columbus when facilitated in the countries where it operates. June 2019.
by conclusion of the Columbus proposed merger Predator Oil & Gas Holdings, July 22 2020 Petrobras, July 20 2020
and before the expiry of the period under the
WPA relating to Predator’s rights upon a change Petrobras concludes the
of control of FRAM, insofar as it may or may not PERFORMANCE
impact Predator’s forward planning for expan- sale of TAG
sion of CO2 EOR activities in the Inniss-Trinity Trinidad: Trinity Exploration
field. Petrobras, following up on the press release of
Predator is recommending to carry out an March 13, 2020, informs that it has entered into announces Q2-2020
oil rate test for well AT-5X within the next two a share purchase and sale agreement, regarding
weeks to assess the impact of significant CO2 its remaining 10% interest in Transportadora operational update
injection to date on the potential for oil to flow Associada de Gás (TAG), with the group formed
from the injected reservoirs in Inniss-Trinity by ENGIE and Caisse de dépôt et placement du Trinity Exploration & Production, the inde-
at enhanced rates and to assess changes in the Québec (CDPQ). pendent E&P company focused on Trinidad and
properties of the oil with which to re-calibrate The value of the transaction was BRL1.1bn. Tobago, has provided an update on its operations
the CO2 injection parameters if required. Effec- Considering the discount of BRL110mn already for the three-month period ended June 30, 2020.
tiveness and retention of CO2 sequestration received in June as dividends and the other Trinity has continued to combine growing
capacity can also be assessed. adjustments foreseen in the contract, the trans- production levels, a low operating break-even
Financing: The cash consideration for an action was concluded for BRL1.0bn, fully paid and a technically advanced operating capabil-
acquisition of FRAM would be financed by today. ity with a robust financial position, putting the
a local Trinidadian company in return for it Comparing the value of this operation with Company in an exceptional position to contem-
being assigned operatorship and certain rights the value of 90% of TAG sale in June 2019, it is plate new investment opportunities.
as defined in the Incremental Production Ser- necessary to consider that TAG’s debt increased Significantly, production levels were main-
vices Contract for the Inniss-Trinity field , sub- from BRL2bn to BRL23bn, which generated a tained during Q2-2020 with production vol-
ject to consent from the MEEI and Heritage payment of BRL2bn to Petrobras, already con- umes averaging 3,272 bpd, yielding a H1-2020
for any proposed Change of Control of FRAM. sidered in the total amount disclosed at the average of 3,282 bpd. The Group’s unaudited
POGT would retain the tax losses in FRAM and close of the 90% stake sale, as disclosed in the cash balances increased to $19.7mn as at June
the profits from its Pilot Enhanced Oil Recov- third-quarter 2019 result. 30, 2020 ($13.8mn (audited), as at December
ery in the AT-4 Block using injected Carbon This transaction represents another impor- 31, 2019).
Dioxide (Pilot CO2 EOR) , on terms similar to tant milestone for the opening of the natural gas The Company reduced its pre-hedge income
those defined in the current WPA, except that in sector in Brazil, and with it, Petrobras fulfills, 18 operating break-even (revenues less royalties,
addition, on Completion of an Offer to acquire months in advance, one of the commitments opex and G&A) by over 15% quarter-on-quarter
FRAM, POGT shall be entitled to the profits assumed under the Agreement signed with the to $22.6 per barrel (unaudited) (Q1-2020: $26.7
from all future CO2 EOR operations anywhere Administrative Council for Economic Defense per barrel (unaudited)). After hedging income,
within the confines of the Inniss-Trinity field on (CADE) on July 8, 2019. this translates into an effective operating break-
the same commercial terms as currently exist for TAG is a company operating in the natural even of $21.6 per barrel, indicating that the
the AT-4 Block. gas transportation segment, currently holding Company is well on track to meet its target oper-
New opportunities: Separate to an Offer to long-term permits to operate and manage a ating break-even (inclusive of hedging income)
acquire FRAM, POGT and the local Trinidad- 4,500 km gas pipeline system, located mainly in of $20.5 per barrel for FY 2020.
ian company have agreed to look at evaluating
together two new CO2 EOR opportunities in
existing fields onshore Trinidad together with
a potential collaboration onshore Guyana,
whereby Predator can provide its technology,
experience and skills to, at Predator’s sole discre-
tion, have the option to participate in any new
joint venture arising from our joint evaluation
of the opportunities.
Paul Griffiths, Chief Executive of Predator,
commented: “We are looking to begin to execute
our M&A strategy by building on the businesses
we have initiated and developed in three sepa-
rate jurisdictions. New opportunities in Trini-
dad and potentially Guyana, combined with our
exclusivity over Trinidad’s surplus liquid CO2
supply and our successful implementation of
CO2 sequestration, creates the catalyst for val-
ue-enhancing M & A transactions. However,

P18 www. NEWSBASE .com Week 29 23•July•2020