REG - Predator O&G Hldgs - Operational update and commencement of oil sales

Predator Oil & Gas HoldingsAnnouncement

24/03/2025 07:00

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RNS Number : 8004B  Predator Oil & Gas Holdings PLC  24 March 2025

FOR IMMEDIATE RELEASE

 

24 March 2025

 

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")

 

Operational update and commencement of oil sales

 

 

·    CEG Trinidad acquisition progressing on schedule through regulatory
process

 

·    Adds 272 bopd on completion

 

·    Bonasse oil off-take agreement executed and oil sales to commence

 

·    Bonasse Production and Field Services Management Agreement executed

 

·    Company receives a royalty of 30% on gross sales revenues with no
cost exposure

 

·    Bonasse workover programme underway and building to 35 bopd initial
target

 

·    SGN thermo-chemical wax treatment received regulatory approval for
use in Trinidad

 

·    Jacobin-1 workover will be the first test of the SGN patented
technology in Trinidad

 

·    Monitor well performance to evaluate whether Saudi Arabian experience
of 3-fold increase in oil flow rates can be replicated

 

·    Perforating the MOU-3 shallow higher pressure gas onshore Morocco

 

·    Prepare farmout package for 3D seismic and an updip well on the
Titanosaurus structure based on new insights following assessment of MOU-5
drilling results

 

·    Fully-funded for all 2025 firm commitments

 

·    Production revenues are excess discretionary cash

 

Predator Oil & Gas Holdings Plc (PRD), the Jersey-based Oil and Gas
Company with near-term hydrocarbon operations and production focussed on
Morocco and Trinidad is pleased to announce an operational update and
commencement of oil sales.

Bonasse Field

Restoration of oil field facilities and Bonasse-Steeldrum Oilfield throughput
Services Agreement

·    In-field gathering infrastructure and oil storage tanks have been
brought back into service.

 

·    A throughput and services agreement has been signed by the Company
with Steeldrum Oilfields South Erin Trinidad Limited ("Steeldrum") that allows
the Company to sell all crude oil from the Bonasse field via access to the
existing crude oil sales arrangement and under the same commercial terms and
conditions applicable to Steeldrum under the said arrangement.

 

·    The Company has access to Steeldrum' s infrastructure, including a
storage unit of 250 barrels capacity until such time as the Company puts in
place additional storage capacity as production from Bonasse ramps up.

Production and Field Services Management Agreement

·    The Company has executed a Production and Field Services Management
Agreement ("PAFSMA") with NABI Construction (Trinidad and Tobago) Limited
("NABI"), a highly competent in-country provider of drilling and workover
services, equipment and expertise particular to the producing onshore oil
fields in Trinidad.

 

·    Under the PAFSMA, The Company will receive 30% of gross sales
receipts at the sales point, after 12.5% government royalty ("revenues"). All
investment costs and field operating costs will be solely for the NABI
account.

 

·    In the event of any new drilling by NABI, and not the Company, the
Company will receive 20% of revenues after NABI recovers its drilling costs.

 

·    The Company and NABI are working together to identify new drilling
and perforating opportunities in the Bonasse field.

Phase 1 well workovers under the PAFSMA.

·    4 wells were identified for light workovers to bring the Bonasse
field back into production.

 

·    Forecast production is building to the first target of 35 bopd.

 

·    Results from the first two workovers have established production of
16 bopd.

 

 SGN  thermo-chemical was treatment

·    The Ministry of Energy and Energy Industries has approved E.A.R.T.H.
Company Limited's ("EARTH") chemical products SGN Reagent A and SGN Reagent B
for use in the Snowcap-1 and Jacobin-1 workover programmes, subject to HSE and
environmental compliance checks.

 

·    The Company has an existing Memorandum of Understanding with EARTH to
roll out for the first time in Trinidad the new technology that has proven to
enhance oil production in some Saudi Arabian fields by up to 3-fold.

Jacobin-1 and Snowcap-1 workovers, Cory Moruga Exploration and Production
Licence

·    With the approval to use the SGN thermo-chemical wax treatment the
Company can now prepare service contracts to perform the said workovers and to
apply the new wax treatment.

 

·    The Company is fully-financed to fund this low-cost work programme
and will retain 100% of the rights for the anticipated sales revenues based on
these wells potentially delivering higher flow rates after wax treatment.

 

·    Additional storage tank capacity will be required to be moved to Cory
Moruga and a sales offtake agreement with a gathering station with sufficient
spare capacity to take the anticipated higher level of production.

 

·    Conservatively therefore, first revenues from the workover programme
are forecast to occur from July 2025.

Acquisitions

·    The transaction with Challenger Energy ("CEG") for the acquisition of
its St Lucia domiciled subsidiary company, Columbus Energy (St. Lucia)
Limited ("CEG Trinidad"), which in turn holds various subsidiary entities
collectively representing all of the Company's business, producing assets and
operations in Trinidad and Tobago, is proceeding on schedule through the
regulatory consent process.

 

·    Once completed, additional average production of 272 bopd will be
added to the Company's production forecasts.

 

·    Conservatively, first revenues from the acquisition are forecast for
July 2025.

 

·    The interests in the Goudron, Icacos and Inniss-Trinity fields being
acquired will provide 237 existing wells of which a significant proportion
will be suitable for workovers and potentially wax treatment.. Based on the
encouraging initial results after prioritising wells for workover and
efficiently executing improved operational procedures in the Bonasse field,
the Company anticipates a significant potential uplift in production from the
assets being acquired during 2025.

 

·    75% of current consolidated tax losses of approximately USD 55
million are available to offset against Petroleum Profit Tax each year. The
utilisation of the tax losses becomes increasingly efficient when revenues
from production are materially uplifted.

 

·    Drilling of the MOU-5 well under-budget has released discretionary
funds that will allow the Company to seek to acquire additional producing
assets onshore Trinidad if and when they become available in 2025.

 Forward plans

Fully financed near-term firm commitments.

Trinidad

·    Continue Bonasse field workovers to increase production.

 

·    Commence thermo-chemical wax treatments for Jacobin-1 and Snowcap-1.

 

·    Complete CEG acquisition of producing assets and operations in
Trinidad and Tobago.

 

·    Desktop work only to prepare the well design and drilling programme
for the Snowcap-3 appraisal/development well.

Morocco

·    Perforate the shallow higher-pressure gas in MOU-3.

 

·    If sustained gas flow achieved from this zone in MOU-3 then seek to
sell an interest in the shallow gas project to an indigenous entity.

Medium-term discretionary commitments financed by existing cash reserves

Trinidad

·    Target further  acquisitions of onshore producing fields in Trinidad
that can demonstrate a net operating profit and where upside exists to
increase production.

Morocco

·    Prepare the farmout case for 3D seismic acquisition over the entire
Titanosaurus structure.

 

·    Prepare the well programme and AFE for MOU-5 updip well 12 kilometres
to the north.

 

·    Farmout marketing from July 2025 after completion of the MOU-3
shallow testing programme.

 

 

Paul Griffiths, Chief Executive Officer of Predator, commented:

"The update in respect of our Trinidad operations and the acquisition of  CEG
Trinidad demonstrates that we are making steady regulatory, operational and
commercial progress towards developing our production capabilities in
Trinidad.

Production has been established and the sales mechanism secured along with an
innovative and commercially attractive royalty override agreement for one of
our producing asset.

We are fully-funded from existing cash resources for all our firm operational
plans in Trinidad and Morocco as laid out herein. Additional discretionary
balance sheet cash is available for further acquisitions of producing assets
in Trinidad.

Production revenues accruing during 2025 are considered only as additional
discretionary cash and not included in our current cash flow models.
Production income from the CEG assets to be acquired will be significant but
is based on an existing production profile. We have shown from a very
encouraging start to the Bonasse workover programme and our commercial
transactions that scope exits for boosting the production profiles from a very
conservative current base line.

Thermo-chemical wax treatment may enhance these base lines over time by up to
three fold. Infill drilling and heavy workovers under our PAFSMA also have the
ability to boost revenue generation at no cost to the Company.

We are fully-funded to perforate the "low hanging fruit" that the shallow
higher pressure gas in MOU-3 always represented. Two years ago the market was
focussed on high impact materiality. Today cash flow generation and conserving
existing cash resources is the critical medium term strategy for 2025, even if
it is unspectacular, until the market re-adjusts to a more stable footing and
the farmout potential of the MOU-5 structure can be realised.

The Company has always considered it important to maintain a debt-free status,
never as important as at a time of unpredictability in the stability of the
public markets.

We are confident about our Company's future as we have taken into account our
growing ability to organically fund any discretionary spending to offset the
weakness in the public equity markets."

 

 

 

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

 

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 (http://www.predatoroilandgas.com) :

 

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

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

 Tim Thompson                                                                                                                                                                                                                                                                                            predator@flagstaffcomms.com (about%3Ablank)

 Mark Edwards

 Fergus Mellon

Notes to Editors:

 

Predator is an oil & gas company with a diversified portfolio of assets
including unique and highly prospective onshore Moroccan gas exposure and
production, appraisal and exploration projects onshore Trinidad.

 

Morocco offers a potentially faster route to commercialisation of shallow
biogenic gas through a CNG development. The MOU-3 well is currently the focus
of rigless well testing activities. The next step will be to perforate the
shallowest sand seen in this well that has yet to be evaluated. Moroccan gas
prices are high, and the fiscal terms are some of the best in the world.

 

Trinidad offers the security of a mature onshore oil province that has been
producing hydrocarbons for over 50 years. Predator is assembling a portfolio
of onshore producing fields with opportunities for production enhancement and
additional infill development and appraisal drilling. Significant legacy tax
losses, economies of scale and the application of new low-cost technologies
are factors that can improve profit margins per barrel of oil produced.

 

Predator has an experienced management team with particular knowledge of the
Moroccan and Trinidad sub- surface and operations.

 

Predator Oil & Gas Holdings plc is listed on the Equity Shares
(transition) category of the Official List of the London Stock
Exchange's main market for listed securities (symbol: PRD).

 

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

 

 

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