REG - Predator O&G Hldgs - Operational Update and Placing

Predator Oil & Gas HoldingsAnnouncement

17/03/2022 07:00

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RNS Number : 0567F  Predator Oil & Gas Holdings PLC  17 March 2022

FOR IMMEDIATE RELEASE

17 March 2022

 

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")

 

 
      Operations update and Placing to raise £1.035 million

 
Highlights

·    Secure option on rig to drill within a definitive time window

 

·    Planned construction of two well pads

 

·    Competitiveness in accessing well services and materials enhanced

 

·    Second gas target identified for first well

 

·    Exploration target for Jurassic gas being matured

 

·    Quote received and reviewed for MOU-1 well testing

 

 

Predator Oil & Gas Holdings Plc (PRD), the Jersey-based Oil and Gas
Company with operations in Morocco, Ireland and Trinidad focussed on
diversification and security of European energy supply in the context of the
Energy Transition and based on gas as a sustainable lower carbon fuel, is
pleased to announce that it has conditionally placed 11,500,000  new ordinary
shares of no par value in the Company (the "Placing Shares") at a placing
price of 9 pence each (the "Placing Price") to raise £1.035 million before
expenses (the "Placing").

 

The Placing was significantly oversubscribed and utilises 5,000,000 million
shares of the Company's existing headroom shares ("First Tranche Shares") and
6,500,000 of the Company's additional available headroom shares after 27 March
2022 ("Second Tranche Shares") under the Financial Conduct Authority
restrictions for companies on the Official List (standard listing segment) of
the London Stock Exchange's main market for listed securities.

 

Lonny Baumgardner, an executive director of the Company, has participated in
the Placing for Ordinary Shares for a value of £50,000 at the Placing Price.
This participation is equivalent to 4.83% of the Placing.

 

Novum Securities are acting as sole placing agents to the Company.

 

 

 

Use of Proceeds

The Company is primarily intent in the near-term on expanding and executing
its planned 2022 drilling operations in Morocco as issues relating to security
and cost of gas supply  are set to be critical factors during the Energy
Transition influencing the ability to deliver affordable energy.

The strengthening of the Company's financial resources facilitates the
exercise of an option to drill using the Star Valley Rig 101 within a
definitive time window following all regulatory, environmental and partner
approvals. A rig inspection will be carried out shortly by the Company. The
option covers drilling up to three wells in 2022.

Civil works to construct the MOU-4 and MOU-5 well pads will commence following
receipt of all outstanding regulatory, environmental and partner approvals.

Rising costs of materials and services impacted by current tensions in Eastern
Europe dictate that it is prudent to allow for cost inflation to maintain
competitiveness in seeking quotes for well services and equipment and for
maintaining aggressive drilling timelines.

MOU-5 is now being prioritised ahead of MOU-4 for the first well in the
drilling programme. Following desk-top modelling of seismic response to gas in
MOU-1, two shallower gas targets additional to the primary "MOU-4 Fan"
appraisal target have been identified at the MOU-5 well location. The
shallowest of these targets had strong formation gas shows in MOU-1 (dry gas)
and was penetrated in MSD-1 where good quality reservoir was logged.

The MOU-NE prospective lead is being matured as a potential third well in the
planned drilling programme. 2D seismic reprocessing over this feature will be
completed by the end of May 2022. The primary target following further
desk-top studies is now anticipated to be a Lower Jurassic carbonate platform
build-up with potential for leached porosity development covering potentially
up to 100 sq. km., albeit within an area that lacks extensive seismic
coverage. Dry gas shows were encountered in TFR-1X at the top of this
interval. MOU-NE will potentially test the play concept some 1500+ metres
higher than the TFR-1X structure in an area favourably located for gas charge
from the MOU-1 Tertiary basin.  It represents a high-risk target but an
opportunity to test for Jurassic gas close to infrastructure at a drilling
depth of less than 1,450 metres TVD KB.

Additional funding allows the Company to further progress its: FSRU LNG import
projects for Ireland and, potentially, Morocco; set-up the next CO2 EOR
project in Trinidad; and further develop its concept to seek synergies for
green hydrogen and natural gas hybrid developments.

Existing working capital is sufficient to meet the Company's existing
commitments and corporate overheads in 2022, including the testing of MOU-1
which will be synchronised with mobilising the well services and equipment for
MOU-5 to reduce mobilisation and demobilisation costs. A quote for testing has
been received from Schlumberger and has been reviewed.

              USE OF NET PROCEEDS
        WORK PROGRAMME                                                                                                                 COSTS (GBP)
                                               REASONS
 Advance payment to Star Valley                To secure option to drill within an agreed time window and to carry out
                                               maintenance checks on Rig 101 ahead of planned drilling operations

                                                                                                                                                  275,000
 Civil works MOU-4 and MOU-5                   Upon receipt of all regulatory, environmental and partner approvals build the
                                               well pads at MOU-4 and MOU-5

                                                                                                                                                  250,000
 Well inventory purchases for MOU-4 and MOU-5  To cover increases due to rising costs of materials and services impacted by
                                               current political tensions in Eastern Europe

                                                                                                                                                  125,000
 Update MOU-4 and MOU-5 well design            Based on lessons learnt from MOU-1 and potential for cost savings                                    50,000
 Mature MOU-NE prospect                        Based on results of 2D seismic reprocessing expected in May this year and
                                               prepare a scoping drilling proposal

                                                                                                                                                    60,000
 CNG Morocco                                   Environmental Impact Assessment for potential CNG pilot development at Guercif                       50,000
 CO2 EOR Trinidad                              Carry out maintenance check on CO2 EOR equipment and prepare desk-top study
                                               for implementation of CO2 EOR in Lease Operators PS-1 field onshore Trinidad -

                                               basis for negotiating terms for joint venture SPV for CO2 EOR operations

                                                                                                                                                    40,000
 FSRU LNG and gas storage Ireland              Prepare public relations document and programme for the National Energy
                                               Conference Croke Park Dublin 26 April 2022Complete capacity study with

                                               third-party owner of gas infrastructure                                                              40,000
 New Ventures                                  Progress LNG FSRU options for Morocco

                                               Progress synergies for green hydrogen and natural                                                    60,000

                                               gas co-developments

                                                                                                                                     TOTAL GBP950,000
 CURRENT WORKING CAPITAL                       Current working capital is sufficient for the purposes of

                                               existing commitments and corporate overheads through 2022 including
                                               discussions with potential farminees and gas purchasers

 

"Use of Proceeds": The Company currently intends to spend the funds raised as
stated above. However, there may be circumstances where, for sound business
reasons, a re-allocation of funds may be deemed prudent or necessary. The
actual amount that the Company spends in connection with each of the intended
uses of proceeds may vary significantly from the amounts specified above and
will depend on a number of factors, including those referred to under "Risk
Factors" in the Company's published Annual Reports and UKLA IPO Prospectus.

 

 

 

Completion of the Placing

Completion of the Placing is conditional on, inter alia:-

The First Tranche Shares being admitted to listing on the Official List
(standard listing segment) and to trading on the London Stock Exchange's main
market for listed securities ("First Admission") on or before 25 March 2022
(or such later date as may be agreed by the Company and Novum Securities) and
the Second Tranche Shares being admitted to listing on the Official List
(standard listing segment) and to trading on the London Stock Exchange's main
market for listed securities ("Second Admission") on or before 31 March 2022
(or such later date as may be agreed by the Company and Novum Securities) .

Admission, Settlement and Dealings in Placing Shares

Applications will be made to the FCA and to the London Stock Exchange for
First Admission in respect of all the First Tranche Shares proposed to be
issued on completion of the Placing.  It is expected that First Admission
will become effective, and that dealings in the First Tranche  Shares are
expected to commence, at 8.00 a.m. on 25 March 2022.

Applications will be made to the FCA and to the London Stock Exchange for
Second Admission in respect of all the Second Tranche Shares proposed to be
issued on completion of the Placing. It is expected that Second Admission will
become effective, and that dealings in the Second Tranche Shares are expected
to commence, at 8.00 a.m. on 31 March 2022.

The rights attaching to the Placing Shares will be uniform in all respects and
all of the Placing Shares will rank pari passu, and form a single class for
all purposes with, the existing issued shares of no par value in the Company.

Following Admission of the First Tranche Shares the enlarged Share Capital
will be 297,946,267 ordinary shares of no par value.

Following Admission of the Second Tranche Shares the enlarged Share Capital
will be 304,446,267 ordinary shares of no par value.

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

"Today's announcement reinforces the Company's commitment to deliver an
aggressive, expansive and exciting 2022 drilling programme in Morocco building
on the success of the MOU-1 drilling campaign. The hard work necessary to
establish the Company as a successful and proficient, cost-effective operator
in Morocco last year, together with a cautious but thorough approach to the
technical  evaluation of the MOU-1 well results dictated by management's
extensive subsurface experience and understanding of technical risks and
commercial opportunities, is now set to pay dividends. We are perfectly
positioned to take advantage of the "dash for gas" in Europe with a drilling
programme that has been carefully constructed to maximise the opportunity to
appraise and develop gas close to infrastructure whilst also creating
exploration upside within a framework of maintaining a disciplined approach to
capital spending and within the confines of market conditions We seek to lead
by example and not to follow others."

 

 

 

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 (mailto:Info@predatoroilandgas.com)

 Lonny Baumgardner  Chief Operating Officer

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

 Jon Belliss

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

 Christian Dennis

 Peterhouse Capital Limited                                           Tel: +44 (0) 207 220 9791

 Charles Goodfellow

 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 developed and a further drilling programme is under
review.

 

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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