Ozona Reaches Agreement to Lease Pore Space for Cost Effective Long-Term Sequestration of Carbon Dioxide

January 31, 2023 05:20 PM Eastern Standard Time SAN ANTONIO, Texas--(BUSINESS WIRE)--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.

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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.