REG - Predator O&G Hldgs - Corporate Update

Predator Oil & Gas HoldingsAnnouncement

17/09/2024 07:00

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RNS Number : 4121E  Predator Oil & Gas Holdings PLC  17 September 2024

FOR IMMEDIATE RELEASE

 

17 September 2024

 

                          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")

 

Corporate Update

Highlights:

·    MOU-3 rigless testing programme being extended

·    Zenith Energy Limited (Aberdeen) appointed to provide additional well
engineering support as operations expand

·    MOU-5 helium study completed - potential resources estimates this
month

·    Acquisition of additional 16.2%  equity for zero cash consideration
in Cory Moruga approved

·    Memorandum of Understanding executed for application of patented
Saudi Arabian chemical wax treatment in Trinidad

Predator Oil & Gas Holdings Plc (PRD), the Jersey-based Oil and Gas
Company with near-term hydrocarbon operations focussed on Morocco and
Trinidad announces a corporate update.

 

Morocco

 

MOU-3 Sandjet rigless testing programme update

 

The rigless testing programme is being extended based on an initial analysis
of the 2024 rigless testing data that is currently being carried out by Dr.
John Tingas Petroleum and Chemical Engineer. Dr. Tingas has worked with the
Company's CEO on reservoir engineering projects offshore Ireland following the
successful testing of gas at commercial rates in 2006 and 2007;  on the
reservoir engineering for the Tendrara field onshore Morocco in 2013,
following which an appraisal well flowed at a high rate; and on the Company's
Inniss-Trinity CO2 EOR project in Trinidad, where enhanced oil production was
achieved.

 

The Company is fully funded to undertake all additional operations that may be
considered necessary to support reservoir flow assurance for the purposes of
planning a potential development option.

 

Appointment of Zenith Energy Limited (Aberdeen) for well engineering support

 

Zenith Energy Limited (Aberdeen), with their larger pool of worldwide
resources to call upon in the areas of well engineering, project management,
completion and well testing and well operator services, have been appointed to
provide well engineering support for Morocco initially and potentially other
geographic areas if and when required.

 

MOU-5 well and potential for helium

 

The geological model for the helium potential of the 187 km2 MOU-5 structure
has been completed by Scorpiongeoscience. Potential helium resources estimates
will be published this month.

 

Drilling of the high impact MOU-5 well will evaluate potential both for helium
and a gas-to-power project adjacent to the Maghreb Gas Pipeline. MOU-5 is a
conventional well that does not require the same specialist Rharb Basin
drilling experience and expertise that was necessary to successfully complete
the 2021 and 2023 drilling programmes.

 

 

Trinidad

 

Memorandum of Understanding for patented Saudi Arabian chemical wax treatment

 

The Company has executed a Memorandum of Understanding with a local company to
apply a patented wax treatment originating in Saudi Arabia to the Jacobin-1
oil reservoirs.

 

Jacobin-1 well workover

 

An oil sample has been collected from Jacobin-1 well and sent to an in-country
laboratory to carry out a wax analysis.

 

On sampling the oil in Jacobin-1 reservoir pressure was also found to have
increased to over 1600 psi over time from when  two of five potential oil
zones were  perforated but not produced by the previous operator. Reservoir
pressure is encouragingly now similar to that of the original pressure of the
adjoining Moruga West Field prior to its development.

 

Adjacent wells in the Moruga West oil field have initially flowed 60 bopd from
just one of the above five reservoir intervals penetrated by Jacobin-1.

 

The proposed chemical treatment for Jacobin-1 will simultaneously apply heat
and release nitrogen in the oil reservoirs to potentially provide a
sustainable increase in oil flow into the well bore.

 

In the Saudi Arabian examples the chemical wax treatment has shown to increase
oil flow rates by up to threefold.

 

A successful wax treatment of Jacobin-1, followed by Snowcap-1, may have a
significant implication for potentially increasing cash flow from low-cost
well workovers, particularly as the Company has US$ 55 million of inherited
tax losses in Trinidad to offset against Petroleum Profit Tax. Falls in oil
price below WTI US$70 per barrel are offset by the disapplication of 18%
Supplementary Petroleum Profit Tax below this spot price.

 

Increase in equity in Cory Moruga Licence approved

 

The Company has received the Ministry of Energy and Energy Industries consent
for the acquisition of the remaining 16.2% interest in the Cory Moruga Licence
for a zero cash consideration.

 

 

Paul Griffiths, Chief Executive Officer of Predator, commented:

"The Company's operations are progressing smoothly. Maintaining fiscal
discipline allows us not only to be fully funded  for all our firm
commitments for the next 12 months but also provides us with discretionary
cash flexibility to strengthen elements of our work programmes, if necessary,
to apply different technologies to potentially enhance reservoir performance
and de-risk flow assurance of oil and gas.

 

The Company's foundations are based on three pillars: fiscal discipline;
project diversity and flexibility from exploration through appraisal to
development and production; and the ability to add near-term producing assets
for minimal or zero cash consideration.

 

The flexibility for drilling the giant "World Class" MOU-5 structure with the
added potential of realising a helium play is an exciting near term prospect."

 

 

For further information visit www.predatoroilandgas.com (about%3Ablank)

 

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%3Ablank) :

 

Enquiries:

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

 Paul Griffiths                Chief Executive Officer                                                                                                                                                                                                                                                  Info@predatoroilandgas.com (about%3Ablank)

 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

 Camarco - Financial PR                                                                                                                                                                                                                                                                                 Tel: +44 (0)20 3757 4980

 Billy Clegg / Owen Roberts / Fergus Young                                                                                                                                                                                                                                                              P (mailto:PredatorOilGas@camarco.co.uk) redatorOilGas@camarco.co.uk

                                                                                                                                                                                                                                                                                                      (mailto:PredatorOilGas@camarco.co.uk)

 

Notes to Editors:

 

Predator is an oil & gas company with a diversified portfolio of scalable
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 and consultants 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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