REG - Predator O&G Hldgs - Memorandum of Understanding with Afriquia Gaz S.A.

Predator Oil & Gas HoldingsAnnouncement

30/11/2023 07:15

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RNS Number : 1356V  Predator Oil & Gas Holdings PLC  30 November 2023

FOR IMMEDIATE RELEASE

30 November 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")

 

Memorandum of Understanding in relation to Gas Sales

   and Collaboration Agreements with Afriquia Gaz S.A.

 

 
Highlights

 

·    Memorandum of Understanding signed with Afriquia Gaz S.A.

 

·    12-month exclusivity period to negotiate legally binding Gas Sales
Agreement

 

·    CNG to be purchased  at the point of delivery of the gas to the CNG
trailers

 

·    Downstream transport and sale of gas to end user will be for Afriquia
Gaz S.A.

 

·    MOU facilitates increasing gas sales to up to 50 million cf/d

 

 

Predator Oil & Gas Holdings Plc (LSE: PRD), the Jersey based Oil and Gas
Company with near-term gas operations focussed on Morocco, is pleased to
announce the signing of a Memorandum of Understanding in relation to Gas Sales
and Collaboration Agreements (the "MOU") with Afriquia Gaz S.A. ("Afriquia"
and together the "Parties").

 

Duration of the MOU is for one year commencing 27 November 2023.

 

During the term of the MOU the Parties shall discuss in good faith and
endeavour to agree the terms and conditions of a legally binding gas sales
agreement ("GSA") between the Parties whereby Predator agrees to sell and
Afriquia to off-take and purchase the CNG corresponding to Predator's
participating interest in the Guercif Licence.

 

Afriquia will have a period of exclusivity during the duration of the MOU to
negotiate the terms and conditions of a mutually acceptable GSA with
Predator.

 

Subject to negotiations and terms and conditions to be mutually agreed between
the Parties the GSA is anticipated to include the following scoping terms:

 

·    Afriquia to purchase gas at the point of delivery of the gas to the
CNG trailers;

 

·    Predator shall fund and operate the CNG development and production
facilities;

 

·    Investment in CNG trailers shall either be through a purchase
arrangement or through a leasing contract which shall be negotiated and agreed
between the Parties and will be dependent on whether Predator or Afriquia are
the providers of the CNG trailers;

 

·    Take-or-Pay provisions (and associated make-up and carry forward
provisions) and fixed term contracts with an agreed Purchase Price for 8 to 10
years;

 

·    It is anticipated that any increases in the initial contracted daily
deliveries shall be phased over 3 years and shall be subject to an absolute
cap of 1.4 million cubic metres per day (equivalent to 50 million cf/day) and
the results of the Guercif Rigless Testing Programme and 2024 Drilling
Programme.

 

 

For information on Afriquia Gaz S.A.

https://www.afriquiagaz.com/ (https://www.afriquiagaz.com/)

 

 

Paul Griffiths, Executive Chairman of Predator, commented:

"We are pleased to have agreed the MOU with Afriquia Gaz S.A. in relation to
entering into substantive discussions regarding a Gas Sales Agreement upon
completion of the rigless testing programme at Guercif.

 

This is the first MOU of its kind in Morocco to address specifically the sale
of CNG at a scale of up to potentially 50 million cubic feet of gas per day
over time.

 

The MOU ensures that we have the solid foundation to penetrate the downstream
Moroccan industrial market. It allows us to focus on our core upstream
strengths which are the identification and maturing of exploration assets
where success is aligned with capturing the greatest uplift for shareholders
in the hydrocarbon value chain for prudent levels of investment."

 

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

 

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 (about:blank) :

 

Enquiries:

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

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

 Lonny Baumgardner    Managing Director

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

 David Coffman / Jon Belliss

 Fox-Davies Capital                                                Tel   +44 (0)203 884 7447

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

 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 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 and the MOU-3 well drilled in 2023
have been completed for rigless testing in 2024. Focus is on supplying
compressed natural gas to the Moroccan industrial market. Further drilling
activity is being progressed to evaluate Jurassic prospects.

 

Predator is seeking to apply CO2 EOR techniques onshore Trinidad which have
the advantage of  sequestrating anthropogenic carbon dioxide. Acquisition
opportunities are also being progressed which are compatible with this
strategy.

 

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 successfully executing operations in the oil and gas sector.

 

 

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