REG - Predator O&G Hldgs - Operations Update

Predator Oil & Gas HoldingsAnnouncement

30/08/2023 07:00

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RNS Number : 7201K  Predator Oil & Gas Holdings PLC  30 August 2023

FOR IMMEDIATE RELEASE

30 August 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")

 

 

 
                          Operations update

 

 
Highlights

 

·    Guercif rigless testing on track and scheduled for September
execution

 

·    CNG development planning on schedule

 

·    Future attractive risk-reward Jurassic drilling being matured

 

·    Cory Moruga acquisition opportunity making progress

 

·    Continuing dialogue on Corrib South successor authorisation

 

 

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 an operations update.

 

Morocco

 

Testing programme

 

The proposed rigless testing programme has been presented to the Office
National des Hydrocarbures et des Mines ("ONHYM").

 

MOU-1 will be the first well in the rigless testing programme to be performed
by Energy Consulting Services ("ECS") based in France and with a licence to
use and operate the Sandjet perforating technology.

 

Ten individual horizons within the interval 1217 to 1300 metres TVD KB have
been selected for perforating.

 

In the interval 769 to 912 metres TVD KB a further eight individual horizons
have been selected for perforating.

 

Four additional data points between 1397 to 1400.5 and 967 to 991 metres and
at 1035 metres TVD KB may be added to provide information that may be
potentially useful for the finalisation of the MOU-3 rigless testing
programme.

 

The MOU-1 well will establish Sandjet rigless testing procedures and will
adjust the operating parameters to optimise the depth of penetration into the
reservoirs of interest if and where required.

 

Testing individual sands in sequence from the bottom of the MOU-1 well upwards
will evaluate the potential for co-mingling different sand intervals on
production and help determine if there is a requirement to isolate any
interval downhole based on any material water cut.

 

An alternative to a coiled tubing unit originally sourced out of Tunisia,
which is required to run the Sandjet perforating tool, has been now been
sourced in France by ECS. This will enable the testing programme to commence
at the earliest possible opportunity in September. Shipping logistics from
Tunisia, due to competition for vessel cargo space, created uncertainty
regarding the exact scheduling of commencement of field operations.

 

The adjusted schedule for delivery of the Sandjet equipment is currently being
put together by ECS and a further announcement will be made when this is
finalised..

 

Future drilling opportunities

 

The updip appraisal of the Jurassic target encountered in MOU-4 is a key
objective of the Company.

 

Three preliminary drilling locations are being selected for inclusion in a new
Environmental Impact Assessment ("EIA").

 

Well design and sourcing of long lead well inventory has commenced.

 

A field trip is being planned for the autumn to evaluate the reservoir
potential of the entire interval of interest in Jurassic surface exposures to
the south of the Guercif licence area.

 

Geochemical source rock quality and maturation studies, including evidence for
migrated gas, for the Jurassic section penetrated in the MOU-4 well are
expected to be completed in September.

 

Two other near-term drilling opportunities are also being assessed, one
location covered by an existing EIA and the other to be added to the new EIA.
Evaluation of the higher pressure shallow gas encountered in MOU-3 and a
southwest extension of the MOU-3 structure would be the targets for future
drilling.

 

Trinidad

 

On 8 March 2023, the Company announced that it had entered into an agreement
("Agreement") with Challenger Energy Group Plc pertaining to the sale of the
Cory Moruga asset in Trinidad. In that announcement, it was noted that
completion of the transaction was conditional on consent of the Trinidadian
Ministry of Energy and Energy Industries ("MEEI") to a revised work programme
for the Cory Moruga licence proposed by the Company, as well as agreement of
MEEI to a revision of future fees for the Cory Moruga licence and a settlement
/ cancellation of past claimed dues pertaining to the Cory Moruga licence. The
Agreement stipulated a long stop date of 31 August 2023 for securing the
relevant consent and agreements from MEEI.

Dialogue with MEEI continues, with the parties having made progress on
reaching acceptable terms, and the parties remain confident that appropriate
consents and agreement will be forthcoming. However, completion of the
transaction will not be possible by 31 August 2023. Accordingly, the parties
have mutually agreed to extend the last date for completion of the intended
transaction by 3 months, to 30 November 2023.

The Company sees the opportunity for a future drilling programme at Cory
Moruga with the objective of confirming hydrocarbon resources and delivering a
high productivity well in a primarily undeveloped field.

As part of the Agreement, and as advised on 8 March 2023, the parties had also
agreed to establish a collaboration in relation to CO2 EOR activities and
projects in other areas in Trinidad. In parallel to the ongoing process to
complete the sale of the Cory Moruga asset in Trinidad, the parties have
progressed discussions seeking to re-establish partnering arrangements in
relation to other assets, in particular the Inniss-Trinity field - further
announcements will be made as appropriate.

In the longer term, scaling up of potential CO2 EOR operations and the
creation of cost-saving operational synergies are likely to be considered by
the Company subject to updating of project economics. CO2 EOR operations would
initially be conducted on an individual well basis to potentially provide a
contribution to Company overheads and operating costs as a Cory Moruga
drilling programme progresses, subject to regulatory consents.

Ireland

On the 28 July 2023 the Company received an acknowledgement from the
Department of the Environment, Climate and Communications ("DECC") that a
request made on behalf of the Company and its potential partner in the event
of a future award of a Frontier Exploration Licence in respect of "Corrib
South" was receiving attention.

 

Corrib South has mid and high case estimates for gross gas resources of 137.8
and 484.8 BCF respectively (PRD net interest 50%) with a 44% chance of
geological success and a 50% chance of development (Tracs International
Limited July 2023).

 

 

 

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

"The Sandjet rigless testing programme is on track and scheduled to be
executed and completed in September.

In parallel with the testing programme agreements for the sale of gas and
sourcing and scheduling for delivery of long lead items required for the CNG
development and an Environmental Impact Assessment are being progressed.

Company strategy is to develop a revenue-generating business opportunity
capable of being monetised under the right market conditions.

Opportunities for further drilling, in particular to evaluate the Jurassic
structure partly penetrated by MOU-4, are being developed. The strategy has a
clear objective to identify and pursue balanced risk-reward projects where
early near-term shareholder value can be delivered through drilling success.
Current market dynamics support drilling activity and very near-term value
creation.

Subject to rigless testing results, an initial Compressed Natural Gas
development can potentially be funded by a debt instrument linked to
production thereby freeing up existing cash resources for more high impact
drilling.

Trinidad offers a separate potential future drilling opportunity in an
under-developed onshore field. The project is capable of adding primary
hydrocarbon resources that can grow into a significant cash-generating
business. There are few such opportunities remaining onshore in Trinidad.

Corrib South in Ireland remains an attractive commercial proposition for gas
whilst also potentially contributing to the longevity and commerciality of the
Corrib infrastructure through the energy transition. This could underpin
potential use of the infrastructure beyond the Energy Transition for blended
gas and hydrogen storage.

The Company remains active on three fronts and will continue to deliver
shareholder value as and when the opportunity arises within its portfolio of
projects."

 

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

 David Coffman / Jon Belliss

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

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

 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 less than 10 kilometres from the Maghreb gas
pipeline.  The MOU-1 well drilled in 2021 is being prepared for a follow-up
testing programme to coordinate with a further drilling programme to move the
project to a CNG development stage.

 

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.

 

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 operations in the oil and gas industry.

 

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