REG - Predator O&G Hldgs - Loan of Net Proceeds of Directors Share Sales

Predator Oil & Gas HoldingsAnnouncement

28/06/2023 07:00

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RNS Number : 1192E  Predator Oil & Gas Holdings PLC  28 June 2023

FOR IMMEDIATE RELEASE

28 June 2023

 

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

 
LEI 213800L7QXFURBFLDS54

Predator Oil & Gas Holdings Plc

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

 

Loan of net proceeds of Directors' share sales through Novum Securities
Limited to raise £1,890,000

 

 

Loan of net proceeds of Directors' share sales

 

The Company does not have sufficient headroom to enable issue and admission of
new ordinary shares without the production of an FCA approved prospectus.

Accordingly, Novum Securities have received firm orders to buy 18,000,000
existing ordinary shares of no par value in the Company at a price of 10.5
pence each.

Paul Griffiths and Lonny Baumgardner will sell17,500,000 and 500,000 ordinary
shares respectively (the "Sales Shares") at a price of 10.5 pence each (the
"Sales Price") to raise £1,890,000 (before expenses) (the "Sales Proceeds").
The transfer of the Sales Shares is expected on or around 28 June 2023.

The net Sales Proceeds are being loaned to the Company (the  "Loans").

 

Use of Net Proceeds

The additional funding allows for MOU-4 drilling to progress on schedule
without incurring potential standby time waiting on advance payments for well
services.

 WORK PROGRAMME                                                     COSTS (GBP)
 MOU-4     Advance payments for well services and site build           1,300,000
 MOU-3     Additional, diesel chemicals and drilling fluids               400,000
 General working capital and broker expenses                              190,000

 

Loan Agreement

The Loans will be documented in separate agreements between Paul Griffiths and
Lonny Baumgardner and the Company (the "Loan Agreements").

Under the unsecured Loan Agreements the Loans will be capitalised with the
return of the same number of Sales Shares to Mr Griffiths (17,500,000 ordinary
shares of no par value) and Mr. Baumgardner (500,000 ordinary shares of no par
value) when the Company has additional headroom and at an appropriate time,
subject to the Company's dealing policy. When repayment of the Loans are due
pursuant to the terms of the Loan Agreements the Company will make the
necessary applications to the FCA and LSE to have those new ordinary shares
admitted to trading.

It is anticipated that the Company will complete and publish a Prospectus in
the coming weeks to, amongst other things, enable the return of all shares due
to Paul Griffiths and Lonny Baumgardner (including those loaned previously)
before the rigless well testing programme commences in Guercif. Additional
working capital will be required in the future to help accelerate a potential
Compressed Natural Gas development.

An updated Competent Person's Report will be produced at the time of a
Prospectus.

Interest shall accrue on the Loans at a rate of 4% (four per cent.) above
SONIA of the principal sums lent of £1,837,500 and £52,500, being the market
value of the Sales Shares at the Sales Price. The default rate of interest
under the Loan Agreements for any sum which is not repaid when due is 12% per
annum.

Related Party Transaction

Paul Griffiths and Lonny Baumgardner are directors of the Company. The Loan
Agreements are therefore considered to be a material related party
transaction.

Alistar Jury and Carl Kindinger, being the independent directors for the
purposes of the Related Party Transaction consider that the terms and
conditions of the Loan Agreement are fair and reasonable insofar as the
shareholders of the Company are concerned.

Total Voting Rights

The total number of voting rights in the Company remains unchanged. The figure
of 426,403,418 may be used by shareholders in the Company as the denominator
for calculations to determine if they have a notifiable interest in the share
capital of the Company under the Disclosure Guidance and Transparency Rules,
or if such interest has changed.

 

 

For further information visit www.predatoroilandgas.com
(http://www.predatoroilandgas.com)

 

Follow the Company on twitter @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 (http://www.predatoroilandgas.com/) :

 

 

 

Enquiries:

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

 Paul Griffiths               Executive Chairman                 Info@predatoroilandgas.com (mailto:Info@predatoroilandgas.com)

 Lonny Baumgardner   Managing Director

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

 David Coffman / Jon Belliss

 Fox-Davies Capital                                              Tel +44 (0)2038847447

 Jerry Keen                                                      jerry@fox-davies.com (mailto:jerry@fox-davies.com)

 Optiva Securities Limited                                       Tel: +44 (0) 203 137 1902

 Christian Dennis

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

 Tim Thompson                                                    predator@flagstaffcomms.com (mailto:predator@flagstaffcomms.com)

 Mark Edwards

 Fergus Mellon

 

 

 

 

Notes to Editors:

 

Predator is operator of the Guercif Petroleum Agreement onshore Morocco which
is prospective for Tertiary gas less than 10 kilometres from the Maghreb gas
pipeline.  The MOU-1 well drilled in 2021 is being prepared for a follow-up
testing programme to coordinate with a further drilling programme to move the
project to a CNG development stage.

 

Predator is seeking to further develop the remaining oil reserves of
Trinidad's mature onshore oil fields through the application of CO2 EOR
techniques and by sequestrating anthropogenic carbon dioxide.

 

Predator owns and operates exploration and appraisal assets in licensing
options offshore Ireland, for which successor authorisations have been applied
for, adjoining Vermilion's Corrib gas field in the Slyne Basin on the Atlantic
Margin and east of the decommissioned Kinsale gas field in the Celtic Sea.

 

Predator has developed a Floating Storage and Regasification Project ("FSRUP")
for the import of LNG and its regassification for Ireland and is also
developing gas storage concepts to address security of gas supply and
volatility in gas prices during times of peak gas demand.

 

The Company has a highly experienced management team with a proven track
record in operations in the oil and gas industry.

 

 

 

 

 

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