Ozona Reaches Agreement to Lease Pore Space for Cost Effective Long-Term Sequestration of Carbon Dioxide
January 31 2023 - 5:20PM
Business Wire
Ozona CCS LLC Plans to Drill Carbon Dioxide
Sequestration Well In the Permian Basin
Ozona CCS, LLC (“Ozona” or “the Company”) of San Antonio, Texas
has reached a definitive agreement with Texas Pacific Land
Corporation (NYSE: TPL) ("TPL") to lease approximately 5,173
contiguous acres of land for the purpose of drilling one of the
first commercial carbon dioxide (CO2) sequestration wells in the
Permian Basin.
This project is part of Ozona’s business strategy to provide
comprehensive long-term solutions to capture, transport, and
sequester CO2. The Permian Basin and the Texas Gulf Coast will be
the focus of Ozona’s initial capture and sequestration projects.
Initial anchor customers will include natural gas processing plants
and oil and gas operators in the region.
Ozona will immediately begin the permitting process with Federal
and State regulatory agencies to drill a CO2 disposal well on TPL
surface. The acreage has an estimated initial injection rate of up
to 25,000 barrels per day and an estimated total storage capacity
of at least 40,000,000 metric tons of CO2. The target in-service
date will be the third quarter of 2024. The Company can expand the
acreage as additional storage capacity needs increase.
“We are excited to collaborate with TPL on the first of its kind
project in the Permian Basin,” said Richard Adams, Co-Chief
Executive Officer and Chief Operations Officer of Ozona. “Drilling
one of the first carbon dioxide sequestration wells in the Permian
shows our ability as an industry leader in reducing carbon dioxide
in the atmosphere. We continue to build momentum in developing
carbon capture projects in the Permian and elsewhere across North
America. I am proud of our team and the effort they have put forth
to make this a reality.”
“Ozona shares our priorities for conservation and responsible
resource management, and this project serves as a significant
milestone in bringing scalable carbon capture solutions to the
Permian,” said Tyler Glover, CEO of TPL. “We are excited to see
Ozona bring these promising projects to reality. Carbon capture
opportunities like these align with our goal to leverage our vast
surface footprint to support sustainability initiatives and enhance
shareholder value.”
About Ozona CCS, LLC
Ozona CCS is a privately held environmental services company
based in San Antonio, Texas focused on a comprehensive carbon
capture and onshore sequestration solutions for CO2. The management
team has successfully designed, permitted, constructed, and
operated several CO2 sequestration systems over the past 20 years.
Ozona has a full staff of employees with extensive experience in
the technical aspects of CO2 capture and sequestration including
geology, reservoir engineering, well design, permits and
construction of CO2 facilities, wells, and pipelines. Ozona's
in-house technical team can evaluate a project's subsurface
characteristics using seismic and develop the CO2 plume model for
any type of sequestration well permit. The Management Team has
raised and deployed over $7 billion on large capital projects over
their careers. For more information, visit: www.ozonaccs.com
About Texas Pacific Land Corporation
Texas Pacific Land Corporation is one of the largest landowners
in the State of Texas with approximately 880,000 acres of land in
West Texas, with the majority of its ownership concentrated in the
Permian Basin. The Company is not an oil and gas producer, but its
surface and royalty ownership allow revenue generation through the
entire value chain of oil and gas development, including through
fixed fee payments for use of our land, revenue for sales of
materials (caliche) used in the construction of infrastructure,
providing sourced water, and treated produced water, revenue from
our oil and gas royalty interests, and revenues related to
saltwater disposal on our land. The Company also generates revenue
from pipeline, power line and utility easements, commercial leases,
and seismic and temporary permits related to a variety of land uses
including midstream infrastructure projects and hydrocarbon
processing facilities. For more information, visit:
www.texaspacific.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20230131006135/en/
Doug McClure Ozona CCS, LLC Vice President, Business Development
(210) 600-5781 doug.mcclure@ozonaccs.com
Texas Pacific Land (NYSE:TPL)
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