Ozona CCS LLC has reached a definitive agreement with a private landowner to lease 5,722.79 contiguous acres of pore space in Loving County, Texas, for the purpose of drilling multiple commercial carbon dioxide (CO2) sequestration wells in the Permian basin.
This acquisition increases Ozona’s CCS lease position to over 10,000 contiguous acres with estimated pore space capacity of 120 million metric tons. Ozona will start the federal and state permitting process to drill and operate multiple CO2 disposal wells across its acreage position. Each well will have an initial injection rate of 25,000 barrels per day. The target in-service date for Class VI wells will be the first quarter of 2026.
“This acquisition is another key component in our goal to provide comprehensive long-term solutions to capture, transport, and sequester CO2 in the Permian Basin,” Rich Adams, co-CEO and COO of Ozona, said. “Initial anchor customers will include existing natural gas processing plants and oil and gas operators in the region in addition to industrial and power generation under development.”