REG - Predator O&G Hldgs - MOU-2 Well Preparations

Predator Oil & Gas HoldingsAnnouncement

08/11/2022 07:00

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RNS Number : 5962F  Predator Oil & Gas Holdings PLC  08 November 2022

FOR IMMEDIATE RELEASE

 8 November 2022

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")

 

 

MOU-2 well preparations

Highlights

 

 

·    Estimated MOU-2 will commence drilling within the first two weeks of
December

 

·    Well costs prudently managed and as for MOU-1 despite cost inflation

 

·    Gas sales and CNG financing agreements triggered by release of test
results

 

·    Corporate transaction to monetise shareholder value will be
considered

 

after MOU-2 and MOU-1 rigless testing

 

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
provide an update on progress towards finalising its drilling operation to
enable the MOU-2 well to commence drilling.

Currently it is estimated that the well will commence drilling within the
first two weeks of December. The exact date will be determined by when all
pre-ordered drilling materials have cleared Moroccan customs in the coming
weeks. Materials have been sourced from Canada, Egypt, France, the UK and the
Middle East, reflecting the pressure on logistics and the supply chain that
the war in Ukraine has created for the larger drilling services companies.

Re-assessing and adjusting the components of the drilling mud system and
carefully adjusting mud weights based on the information gathered from MOU-1
is anticipated to afford greater reservoir protection whilst drilling and to
facilitate a successful rigless testing programme.

Optimisation of the overall drilling programme by using the MOU-1 experience
together with our ability to connect to multiple service providers to overcome
supply chain issues has enabled the Company to make significant cost savings
such that the budgeted cost of MOU-2 remains very close to the final well cost
for MOU-1. This is despite the significant increase in the cost of equipment,
materials and personnel as a result of challenging global market conditions.

Following initial discussions during this year with a number of parties it is
anticipated that the Company will sign agreements shortly after the
announcement of the MOU-2 test results with certain companies that it has
prioritised for gas sales and an initial financing package for a simple
Compressed Natural Gas ("CNG") pilot development. CNG is easily scalable,
unlike a fixed pipeline development, and is attractive for developers of gas
seeking a near-term increase in gas revenues.

Paul Griffiths, Executive Chairman of Predator Oil & Gas Holdings
Plc commented:

"We are delighted to have made excellent progress towards commencing the
drilling of the MOU-2 well as a result of being able to develop a diverse
supply chain to ensure that all drilling materials are available at the well
site to enable operating a successful well.

 

We are please with the level of interest being generated within Morocco and
amongst those groups seeking gas to address the rise in demand for secure new
gas resources.

 

We have multiple gas prospects in this area of the Guercif licence for further
"running room" without any requirement to expand our licence portfolio.

 

The option to prudently finance further step-out drilling on the back of
revenue generation from CNG sales is an attractive business development
strategy. However MOU-2 and MOU-1 rigless testing could potentially confirm
continuity of the Moulouya Fan over an area of 30km² to support a case for
the higher end of the net contingent gas resources to the Company of 708 BCF,
as defined in the independent SLR Consulting Ireland Ltd. ("SLR") Competent
Persons Report ("CPR"), (February 2020 and January 2022 "MOU-4" updated). If
this were the case the Company would not hesitate to initiate a corporate
transaction to monetise shareholder value. In the current climate gas assets
attract a significant premium as they can contribute to security of energy
supply and the Energy Transition to help stabilise the near-term cost of
energy."

 

 

 

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

 Jon Belliss

 David Coffman

                                                                 Tel: +44 (0) 203 137 1902

 Optiva Securities Limited

 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 in prospects less than 10 kilometres from the
Maghreb gas pipeline.  The MOU-1 well has been completed and a follow-up
testing programme is being finalised to coordinate with a further drilling
programme beginning in 2022.

 

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 to produce
"greener" oil.

 

In addition, Predator also 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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