Oklahoma City-based Riley Exploration Permian Inc. announced updates related to its enhanced oil recovery (EOR) pilot project and its upcoming dividend.

The Northwest Shelf operator said it executed two agreements, effective October 7, 2021, related to its EOR pilot project.

Riley Permian entered into an agreement with the Cortez Pipeline Co. relating to the connection and establishment of a delivery point for Riley Permian on the Cortez Pipeline at its Champions assets in Yoakum County, Texas. Cortez owns and operates a pipeline system originating in or near Cortez, Colorado and traversing the states of New Mexico and Texas for the transportation of CO2.

Riley Permian also entered into an agreement with Kinder Morgan CO2 Company LLC, an affiliate of Kinder Morgan, Inc. (together with Kinder Morgan CO2 Co.), one of the largest energy infrastructure companies in North America, relating to the purchase and sale of CO2 from Kinder Morgan. Riley Permian will purchase CO2 from Kinder Morgan, which will be delivered to Riley Permian's properties via its planned connection to the Cortez Pipeline.

Separately, Riley Permian announced Oct. 7 that its board of directors has declared a cash dividend on the company's common stock in the amount of $0.31 per share. The dividend is payable on November 4, 2021 to stockholders of record as of the close of business on October 21, 2021.

Based in Oklahoma City, Riley Exploration Permian focuses on developing conventional oil and natural gas properties in the Northwest Shelf of the Permian Basin. Its acreage is primarily located on large contiguous blocks in Texas’ Yoakum County and New Mexico’s Lea, Roosevelt and Chaves counties. 

Bobby Riley, Riley Permian's chairman and CEO, commented, "We're pleased to announce these positive developments. We're excited to work with such respectable industry players as Kinder Morgan and the Cortez Pipeline Company and to continue to advance our EOR pilot project. This pipeline connection and purchase agreement represents the first step for Riley Permian in gaining direct access to a wider network of CO2 pipeline infrastructure and to CO2 source product. Related to the operations of this project, we've begun the drilling of vertical injection wells in the field, and we're laying water and gas line infrastructure, according to plans previously disclosed. Finally, the approximate 10% increase in our dividend is a testament to the continued execution of our business plan and return of capital to shareholders."

Comments