Further on to my post regarding the New Ventures, I've seen FDR...

Further on to my post regarding the New Ventures, I've seen FDR mention CCS quite a few times now so I dug in to it and wow, I missed a big part of a developing FDR business strategy. I paid very little attention to the UK CCS market before so I spent the week diving into it. The UK Govt are upfronting the cost of creating the industry to the tune of US$25B. The likes of Harbour and BP have already JV'd and agreed to develop a major Carbon reinjection project using existing pipeline infrastructure and depleted O&G fields (https://www.vikingccs.co.uk/news/harbour-energy-and-bp-agree-to-develop-the-viking-ccs-project). Turns out that the NSTA held their first CCS Licensing round last year with successful bids being announced within the next couple months:






After reading the Quarterly directly mention CCS and given our UK focus and partnerships their with Harbour and Dana, it leaves little doubt we are pushing into this area. How does it provide value to company? Pretty much the same way exploring for fossil fuels does, except you are exploring for empty areas/pockets/permeability where you can store carbon at a depth where it liquifies at pressure. You do the technical work, find a drill target and farmout for drill. If a licensee drills and strikes a pocket then they essentially own the "storage" part in CCS. From there you can JV or go it alone developing a CCS project that could be cornerstoned by the UK Govt. UK are pushing for first carbon injection by 2027 and 20 - 30MTCO2 injection per YEAR by 2030. It is a major component of their net zero plan

19 Companies participated in the first licensing round with 26 bids for 13 CCS blocks.

If FDR are indeed going for this, we could be at the forefront of a major new UK Govt mandated and funded industry

GLTA