REG - Predator O&G Hldgs - Placing to raise £2 Million

Predator Oil & Gas HoldingsAnnouncement

17/03/2023 07:00

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RNS Number : 2907T  Predator Oil & Gas Holdings PLC  17 March 2023

FOR IMMEDIATE RELEASE

17 March 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")

 

Placing to raise £2 million

 

 

Highlights

·    To fully fund the MOU-3 well

·    Targeting Contingent and additional Prospective Resources in a single
well

·    Accelerating the potential for monetisation through a sales process
in 2023

 

 

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 that it has conditionally placed 15,500,000 new ordinary shares of no
par value in the Company and 20,863,636 existing ordinary shares of no par
value in the Company transferred by a director of the Company, Paul Griffiths,
( the "Placing Shares") at a placing price of 5.5 pence each (the "Placing
Price") to raise £2,000,000 (before expenses) (the "Placing").

The Placing utilises the Company's available headroom shares as of 31 March
2023 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.

Novum Securities Limited ("Novum") are acting as the sole placing agents to
the Company.

The Company will not have sufficient headroom to enable issue and admission of
all of the 36,363,636 Placing Shares which are required to be issued pursuant
to the Placing without producing of an FCA approved prospectus.

The Company is therefore proposing to issue and admit 15,500,000 new ordinary
shares (up to its existing headroom limit existing at 31 March 2023)  on or
around 3 April 2023.

On the same date, it is also intended for a director of the Company, Paul
Griffiths, to make up the shortfall by way of a loan of 20,863,636 existing
ordinary shares (the "Loan Shares") held by him in order to settle the Placing
in a timely manner. For the avoidance of doubt, the transfer of the shares
subject to Novum from Paul Griffiths involves no consideration being paid. The
transfer of these shares is expected to be made on or around 3 April 2023.

Use of Net Proceeds

 

 

 WORK PROGRAMME                                   COSTS (GBP)
 MOU-3     civil engineering                         130,000
                   site build
 MOU-3     drill to 1,500 metres                  1,800,000
 General working capital                               70,000

 

The MOU-3 surface location and drilling programme incorporates geological
information from the suspended MOU-2 well and allows the Company the first
opportunity to penetrate in a single well not only the Moulouya Fan primary
target but also the shallower potential gas target included in the first
Competent Persons Report produced by SLR Consulting Ireland Ltd. in March
2019.

MOU-3 will therefore target the Prospective and Contingent gas resources shown
in the table below.

 GAS RESOURCES                               Best Estimate   High Estimate     Best                High

             BCF                                                               Estimate            Estimate
                                             Gross           Net               Gross               Net
 PROSPECTIVE¹   Shallow target                     426              320                879               659
 CONTINGENT²     Moulouya Fan                      393              295                944               708
                    TOTAL                          819              615             1,823             1,367

 

¹    SLR Consulting (Ireland) Ltd. March 2019

²    SLR Consulting (Ireland) Ltd. January 2022

SLR Consulting (Ireland) Ltd. ² assigned an Expected Net Present Value of
US$1.99 million per BCF with a 25% chance of commerciality for the Contingent
Moulouya Fan gas resources.

Stock Lending Agreement

The Loan Shares will be documented in a single stock lending agreement between
Paul Griffiths and the Company (the "Stock Lending Agreement").

Under the unsecured Stock Lending Agreement between the Company and Paul
Griffiths the return of 20,863,636 shares loaned to the Company (the "Loan")
are intended to be issued to Mr Griffiths when the Company has additional
headroom and at an appropriate time, subject to the Company's dealing policy.
When repayment is due the Company will make the necessary listing and
admission hearing applications to have those new ordinary shares admitted to
trading.

Interest shall accrue on the Loan at a rate of 4% (four percent) above SONIA
of the principal sum lent of £1,147,500, being the market value of 20,863,636
shares at the Placing Price. The default rate of interest under the Stock
Lending Agreement for any sum which is not repaid when due is 12% per annum.

Related Party Transaction

Paul Griffiths is a director of the Company. The Stock Lending Agreement is
therefore considered to be a related party transaction.

Lonny Baumgardner, Alistar Jury and Carl Kindinger, being the independent
directors for the purposes of the Related Party Transaction consider that the
terms and conditions of the Stock Lending Agreement are fair and reasonable
insofar as the shareholders of the Company are concerned.

Completion of the new Placing Shares

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

15,500,000 ordinary shares of no par value of the total number of 36,363,636
Placing 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 ("Admission") on or before 3 April  2023 (or such later
date as may be agreed by the Company and Novum).

Admission, Settlement and Dealings in new Placing Shares

An application will be made to the FCA and to the London Stock Exchange
Admission in respect of those 15,500,000 new ordinary shares of no par value
of out of the total number of Placing Shares proposed to be issued on
completion of the Placing.  It is expected that Admission will become
effective, and that dealings in such shares are expected to commence, at 8.00
a.m. on 3 April 2023.

The rights attaching to the new Placing Shares will be uniform in all respects
and all of the new 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.

Total Voting Rights

Following Admission, the Company will have 401,294,903 ordinary shares of no
par value in issue, each with one vote per share (and none of which are held
in treasury). The total number of voting rights in the Company is therefore
increased by 15,500,000 to  401,294,903.  This figure of 401,294,903 may be
used by shareholders in the Company as the denominator for calculations to
determine if they have a notifiable interest in the share capital of the
Company under the Disclosure Guidance and Transparency Rules, or if such
interest has changed.

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

"The additional funding announced today allows us to advance the drilling of
MOU-3 to target for the first time all Prospective and Contingent gas
resources.

The learning curve has improved substantially following the information
gathered from the suspended well MOU-2. As a result we believe that bringing
forward the drilling of MOU-3, with a projected start date in the first week
of May, is a sensible course of action.

 

I am delighted to be supporting the Company and its shareholders through a
loan of shares to enable MOU-3 to proceed earlier than originally envisaged
based on attractive risk versus reward metrics."

 

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

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

 Christian Dennis, CEO

 Ben Maitland, Corporate Finance                                 Tel. +44 (0) 203 034 2707

 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 and suitable for the development of Compressed Natural
Gas for Morocco's industrial sector.  The MOU-1 well has been completed and
is subject to a follow-up testing programme. The MOU-2 well is currently
suspended pending a potential re-entry.

 

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 in oil
reservoirs.

 

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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