Ozona Bags the Lease of over 5,500 Acres of Contiguous Land in The Permian Basin
Ozona, an environmental services firm, has secured a significant lease for over 5,500 acres of pore space in Loving County, Texas. This move is aimed at the development of several commercial carbon dioxide (CO2) sequestration wells in the renowned Permian Basin. With this acquisition, Ozona expands its Carbon Capture and Storage (CCS) leasehold to more than 10,000 continuous acres, offering an estimated pore space capacity of 120 metric tonnes.
Request Access To The Latest Price Trends of Natural Gas
Following the acquisition, Ozona plans to initiate the state and federal permitting procedures to drill and operate multiple CO2 disposal wells across its expansive acreage. Once these wells are drilled, it's projected that each will have an initial CO2 injection rate of 25,000 barrels daily. The company anticipates that these Class VI wells will be operational by the first quarter of 2026.
Rich Adams, the Co-CEO and Chief Operating Officer of Ozona, expressed enthusiasm about the acquisition, viewing it as an integral step towards the company's vision of offering enduring solutions for the capture, transportation, and sequestration of CO2. Adams elaborated on their initial customer base, noting it would encompass existing natural gas processing units and oil & gas operators in the vicinity. Moreover, industrial and power generation projects under development are also potential collaborators.
The Permian Basin, primarily situated in West Texas and southeastern New Mexico, is recognized as one of the most productive oil and natural gas regions in the United States. Given the substantial emissions linked with fossil fuel extraction in the area, there's an increasing interest in tapping CCS opportunities within the Permian Basin as a means to offset greenhouse gas emissions.
Read More About Natural Gas Production Cost Reports - Get Free Sample Copy in PDF
In a related development earlier this year, the Global CCS Institute endorsed the call to action from G7 leaders, urging a global scale-up of CCS technologies. This appeal was in response to a communique released by the G7, emphasizing the necessity for the extensive deployment of CCS solutions. The statement by the G7 underscored the urgency to expand CO2 storage and transport infrastructures as a pivotal measure to speed up industry-wide decarbonization efforts.
According to the article by Procurement Resource, Ozona, an environmental services firm, has acquired over 5,500 acres in Loving County, Texas, to establish commercial carbon dioxide (CO2) sequestration wells in the Permian Basin. This acquisition boosts Ozona's CCS lease to over 10,000 continuous acres. The company aims to begin drilling CO2 disposal wells after obtaining necessary permits, with each well potentially injecting 25,000 barrels of CO2 daily by Q1 2026. This initiative supports the broader goal of reducing greenhouse gas emissions in a major US oil-producing region.