REG - Predator O&G Hldgs - Acquisition Majority Shareholding Caribbean Rex

Predator Oil & Gas HoldingsAnnouncement

21/01/2025 07:00

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RNS Number : 0215U  Predator Oil & Gas Holdings PLC  21 January 2025

FOR IMMEDIATE RELEASE

 

21 January 2025

 

                          Predator Oil & Gas
Holdings Plc / Index: LSE / Epic: PRD / Sector: Oil & Gas

Predator Oil & Gas Holdings Plc

("Predator" or the "Company" and together with its subsidiaries "the Group")

 

                           Acquisition of majority
shareholding in Caribbean Rex Limited ("CRL")

 

 

·    Strategic investment in Caribbean Rex Limited

 

·    Seven existing wells currently being restored to production

 

·    Establishes the Company as a producer with production revenues

 

·    Suitable asset for deployment of patented new SGN Technology chemical
wax treatments not previously applied in Trinidad

 

·    The new technology is a potential "game changer"

 

Predator Oil & Gas Holdings Plc (PRD), the Jersey-based Oil and Gas
Company with near-term hydrocarbon operations and production focussed on
Morocco and Trinidad is pleased to announce the completion by T-Rex Resources
(Trinidad) Limited ("TRex"), a wholly owned subsidiary of Predator Oil &
Gas Holdings Plc, of a strategic investment to acquire 51% of the issued share
capital of CRL.

CRL'S sole asset is a 100% interest in and operatorship of the Bonasse Field
in the SW Peninsular, Trinidad.

This asset was previously evaluated for acquisition in 2015 by a member of the
Company's executive management team.

The Bonasse field is directly licenced by the Ministry of Energy and Energy
Industries ("MEEI") and is a production licence expiring in 2039. There are no
remaining work commitments.

Consideration

The Consideration for the strategic investment in CRL is US$170,000.

The investment in CRL will give TRex ownership of the Bonasse field
facilities, including oil storage tanks, some of which will be required for
the Cory Moruga workovers and ultimate field development. The value of these
assets therefore can be offset against the costs that would have been incurred
in purchasing some production facilities required for the Jacobin-1 and
Snowcap-1 workovers and the eventual appraisal of the Snowcap oil field. These
costs were already factored into the Company's existing working capital
requirements therefore this investment removes the need for this expenditure.

There shall be US$5.3 million in tax losses in CRL and its subsidiaries, if
warranted these can be amalgamated and consolidated in the future with the tax
losses in T-Rex.

Rationale for the strategic investment

·    The Bonasse field currently contains 7 wells that were producing
until being recently shut in for third-party contractual and non-operational
reasons.

 

·    The structure of the field is analogous to that of the Cory Moruga
and Moruga West fields

 

·    Legacy analysis of the well drainage areas based on extrapolated
pressure data for some shallow Middle Cruse reservoirs above 2,000 feet
drilling depth indicate a typical drainage area of 4.5 acres per well and a
STOIIP volume of 382,500 barrels of 22.8 API oil. Historical primary recovery
factor is as low as 4.18%.

 

·    Low primary recovery factor creates an opportunity for the
application of the patented SGN Technology chemical wax treatment, presently
being prepared for the Jacobin-1 workover in the Company's Cory Moruga
licence, to enhance recovery and oil flow rates.

 

·    Optimising the costs of shallow drilling and applying a successful
chemical wax treatment to generate a payback on investment after 6 months are
crucial factors to be taken into account before developing the undrained areas
of the field.

 

Paul Griffiths, Chief Executive Officer of Predator, commented:

"The transaction that we have announced today represents another step towards
building a robust production portfolio suitable for the application of a new
patented chemical wax treatment and rigorous management oversight of field
operating and administrative costs to maximise profit margins and avail of
substantive inherited tax losses through economies of scale and establishing
operational synergies.

If the new chemical wax treatment proves to be a "game changer" in the context
of improving and maintaining oil flow rates, then further field development by
reinvesting production income will be warranted.

Growing an income in United States Dollars will provide some protection
against the weakness of the United Kingdom currency at this time ."

 

 

For further information visit www.predatoroilandgas.com (about:blank)

 

Follow the Company on X @PredatorOilGas.

 

This announcement contains inside information for the purposes of Article 7 of
the Regulation (EU) No 596/2014 on market abuse.

 

 

For more information please visit the Company's website
at www.predatoroilandgas.com (about:blank) :

 

Enquiries:

 Predator Oil & Gas Holdings Plc                                                                                                                                                                                                                                                                        Tel: +44 (0) 1534 834 600

 Paul Griffiths                Chief Executive Officer                                                                                                                                                                                                                                                  Info@predatoroilandgas.com (about:blank)

 Novum Securities Limited                                                                                                                                                                                                                                                                               Tel: +44 (0)207 399 9425

 David Coffman / Jon Belliss

 Oak Securities                                                                                                                                                                                                                                                                                         Tel: +44 (0)203 973 3678

 Jerry                                                                                                                                                                                                                                                                                                  Jerry.keen@oak-securities.com (mailto:Jerry.keen@oak-securities.com)
 Keen

 Flagstaff Strategic and Investor Communications                                                                                                                                                                                                                                                        Tel: +44 (0)207 129 1474

 Tim Thompson                                                                                                                                                                                                                                                                                            predator@flagstaffcomms.com (about:blank)

 Mark Edwards

 Fergus Mellon

Notes to Editors:

 

Predator is an oil & gas company with a diversified portfolio of scaled
assets including unique and highly prospective onshore Moroccan gas exposure,
with multiple fully financed upcoming catalysts.

 

Predator has two high quality, scalable gas projects in Morocco with fast pace
of commercialisation and blue sky potential. Guercif is a shallow CNG biogenic
gas development with multiple traps and at least 4 separate reservoirs with
recently drilled wells due to be flow tested. The Giant Jurassic Titanosaurus
is a shallow thermogenic gas prospect evaluating 249m of potential gross
reservoir thickness in a trap of 187 km2 for pipeline gas to power, with
pipeline 2.5km from wellhead.   Moroccan gas prices are high, and the fiscal
terms are some of the best in the world.  Predator also has a diversified
portfolio of assets across Ireland and Trinidad, which is a near-term
revenue-generating project.

 

Predator has an experienced management team with particular knowledge in
Moroccan sub surface and operations.  The team specialises in incorporating
modern, proven technologies and processes from Canada and the US to provinces
where the conventional technologies did not allow their hydrocarbon potential
to be revealed.

 

Predator Oil & Gas Holdings plc is listed on London Stock Exchange's Main
Market with a Standard Listing (symbol: PRD). For further information, visit
www.predatoroilandgas.com (https://www.predatoroilandgas.com/)

 

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