REG - Predator O&G Hldgs - Morocco Operations Update

Predator Oil & Gas HoldingsAnnouncement

05/10/2023 07:00

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RNS Number : 7405O  Predator Oil & Gas Holdings PLC  05 October 2023

FOR IMMEDIATE RELEASE

5 October 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")

 

 

            Update on gas offtake, development financing and
rigless testing

 

 
Highlights

 

·    Discussions opened to sell the Company's share of gas at the well
head

 

·    Financing options for the Company's share of future potential CNG
development costs  being discussed with preferred parties

 

·    Rigless testing programme amended to test MOU-3 first

 

·    High impact MOU-3  well to lead commercial negotiations for offtake
of gas

 

 

Predator Oil & Gas Holdings Plc (LSE: PRD), the Jersey based Oil and Gas
Company with near-term gas operations focussed on Morocco, announces an update
for the Guercif Compressed Natural Gas ("CNG") project.

 

The Company has opened exploratory discussions with a group focussed on the
downstream energy business to potentially sell its share of gas produced at
the well head subject to an approved CNG development plan.

 

In order to accelerate the timing of substantive negotiations for the sale of
its share of gas, subject to an approved Declaration of Commerciality, the
Company has decided to amend its rigless testing programme. MOU-3 will now be
the first well to be tested. This will establish the potential to maximise gas
flow rates for the purpose of setting commercial parameters for the sale of
the Company's share of potential gas produced to the present and future CNG
industrial market irrespective of pre-drill production profile constraints
imposed by its initial "Proof of CNG Concept" strategy.

 

The Company has been waiting for over three weeks for an in-country wireline
logging unit. A perforating depth control (PDC) log is required to depth
correlate the perforating points with a similar log run before the casing was
set during well completion. Critically this ensures that perforations are
aligned with the reservoir sand intervals to be tested.

 

As a result of this delay in the provision of a third party service the
current slot for using Sandjet as the means of perforating has passed and
therefore this phase of the testing programme is now being re-scheduled.

 

In order not to delay further it has been decided to test MOU-3 and MOU-1
using conventional perforating guns.

 

The Company is confident that the testing programme will deliver the results
necessary to progress commercial negotiations for the offtake of its share of
future potential CNG gas from the well head.

 

Rigless testing MOU-3 using conventional perforating guns is currently
forecast to begin on or before 16 October 2023, assuming that the wireline
logging unit is released from its present contract on or before 10 October
2023. The Company will provide an update if there is any change to this date.

 

A follow-up Sandjet testing programme will take place later to test other
reservoir intervals that are likely to respond better to the Sandjet
perforating technique compared to conventional perforating guns.

 

The Company is also in discussion with several parties regarding the financing
of the CNG development. Upon achieving acceptable financial terms funds set
aside in the Company's strong balance sheet would be re-purposed for follow-up
appraisal drilling.

 

 

 

Paul Griffiths, Executive Chairman of Predator, commented:

"Following the completion of drilling and prior to the execution of the
rigless testing programme the Company has had a period of time to integrate
the results from its MOU-1, MOU-2, MOU-3 and MOU-4 wells and mature its
understanding of the structures holding possible gas accumulations. On this
basis the MOU-3 well and structure is now defined as the focal point for a
potential CNG development hub. As a result this well has been promoted to the
first well in the rigless testing programme.

 

Good progress has been made on opening discussions for the offtake of gas on a
larger scale than was previously envisaged by the "Proof of CNG Pilot Concept"
strategy.

 

Financing options are being crystallised which will allow funds to be
re-purposed for further appraisal drilling activity and value accretion
through drilling success."

 

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 2023. 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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