REG - Predator O&G Hldgs - Placing with Institutional Investor

Predator Oil & Gas HoldingsAnnouncement

04/11/2024 15:45

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20241104:nRSD8705Ka&default-theme=true

RNS Number : 8705K  Predator Oil & Gas Holdings PLC  04 November 2024

FOR IMMEDIATE RELEASE

 

4  November 2024

 

       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")

 

                      Placing to raise  £2 million with
Institutional Investor

 

Predator Oil & Gas Holdings plc (LSE: PRD), a Jersey based Oil and Gas
Company with near-term gas operations focussed on Morocco, is pleased to
announce that it has conditionally placed 40 million new ordinary shares of
no par value in the Company (the "Placing Shares") at a placing price of
5 pence each (the "Placing Price") to raise £2 million (before expenses)
(the "Placing").

The Placing was significantly oversubscribed and utlises some of the Company's
existing headroom shares under the Financial Conduct's Authority Prospectus
Regulation Rules.

 

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

 

 

Use of Proceeds

The Proceeds of the Placing, less expenses, will be spent on:

1.   new testing operations onshore Morocco that can further enhance the
value of the acreage for gas and, potentially, helium and to avail of the
unique licence location relative to gas infrastructure and attractive fiscal
regime;

 

2.   new opportunistic drilling operations where economies of scale reduces
costs by having equipment and well services already mobilised;

 

3.   completing the acquisition of a producing asset onshore Trinidad
suitable for production enhancement to accelerate realisation of the value of
the consolidated tax losses in T-Rex Resources Trinidad Limited, which for a
60 bopd well at WTI oil spot price US$69 per barrel is equivalent to an
additional US$16.49 per barrel for oil produced and sold;

 

4.   being prepared for a potential award of the Corrib South successor
authorisation offshore Ireland and concluding a farmout.

 

 

 

 

 USE OF PROCEEDS
                        Proposed projects                                         Budgeted estimated costs (£)
                     Guercif onshore Morocco
 1.   Perforate higher pressure gas sand between 339 and 350 metres in MOU-3
 (Safety Case being developed)

                                                                                                      600,000
 2.   Contingency for testing MOU-5 and potential helium sampling

                                                                                                        550,000
 3.   Satellite remote sensing and gravity/magnetic study to potentially
 locate fracture zones for enhanced helium concentrations

                                                                                                        50,000
 4.   Contingency to close out Corrib South farmout offshore Ireland -
 conditions for award of successor authorisation now a likely near-term goal in

 H1 2025

                                                                                                         25,000
 5.   Public Relations

 Predator's historical Trinidad CO2 EOR Project is being presented by the
 Ministry of Energy and Energy Industries at COP 29 - global PR opportunity

                                                                                                         10,000
 6.   MOU-6 well planning and long lead items                                                           300,000
                               Onshore Trinidad
 7.   Complete acquisition of new producing field

                                                                                                        15,000
 8.   Drill two infill shallow development wells on new field and apply
 chemical wax treatment.

                                                                                                      350,000
      Put on production - forecast 80 to 120

      bopd initially
 9.   Review new country entry onshore Africa.

 Prospective acreage analogous to geological basins in Algeria and Libya which
 contain large producing fields - First Mover status to negotiate a Production

 Sharing Agreement                                                                                    100,000
             TOTAL COSTS                                                                           2,000,000

 

Completion of the Placing

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

the Placing Shares being admitted to listing on the Equity Shares (transition)
category of the Official List and to trading on the London Stock
Exchange's main market for listed securities ("Admission").

 

Admission, Settlement and Dealings in the new Placing Shares

Applications will be made to the FCA and to the London Stock Exchange for
Admission in respect of all the Placing Shares proposed to be issued on
completion of the Placing.  It is expected that Admission will become
effective, and that dealings in the Placing Shares are expected to commence
at 8.00 a.m. on 8 November 2024.

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.

Warrants

The Placing is with a single institutional strategic investor as a consequence
of which 40 million warrants are being issued on a one-for-one basis
exercisable at 8p. The Warrants have an expiry date of three years from the
date of Admission.

The Warrants, if exercised in whole or in part, potentially provides the
Company with additional funding on the back of a successful outcome to the
MOU-5 drilling programme in Q1 2025 for follow-up appraisal/pre-development
drilling.

Total Voting Rights

Following Admission, the Company has  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
611,874,754. This figure of 611,874,754 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, Chief Executive Officer of Predator Oil & Gas Holdings
Plc commented:

"As a result of unsolicited investor demand, the Board carefully considered
the merits of a placing. The opportunity to strengthen the shareholder
register with a significant strategic investment from a single institution was
determined to be advantageous at this time to strengthen the Company's ability
to navigate through a period of market uncertainty as it focuses on delivering
its key exploration, appraisal and development assets.

 

The Company is at a stage where it is making excellent progress in developing
our portfolio strategy based on blending assets in different jurisdictions
where we have consummated a variety of transactions to develop a tax-efficient
production platform, applied innovative new technologies to discover material
gas resources, and have matured a huge drilling prospect onshore Morocco next
to gas infrastructure linked to the European gas network. Such a material
prospect would normally be in the domain of the super-majors pursuing offshore
exploration at much higher drilling and development costs. Success at MOU-5
potentially creates a unique divestment opportunity in terms of the ability to
monetise a large gas discovery in such an attractive fiscal regime adjacent to
up to 1 BCF/day spare infrastructure capacity.

 

We have developed our assets by not farming out and reducing our equity in our
licences, thereby maintaining operatorship and material project equities
necessary to provide substance for a divestment scenario. Furthermore we have
no debt.

 

It is in this context that the Board decided to strengthen our balance sheet
at this time with a placing. The additional funds will allow us to accelerate
building a production base in Trinidad; support the momentum for developing
the CNG gas business; further evaluate the helium potential in Guercif; and
prepare for a potential award of the Corrib South successor authorisation and
conclusion of a farmout for a structure that is potentially similar in size to
the Corrib gas field. Notwithstanding this the MOU-5 well is on course to be
drilled in Q1 2025 and represents one of the most significant risk-reward
propositions of any well to be drilled in the near future. The search has
commenced for the next generation MOU-5 target onshore Africa. A new country
entry is currently under consideration but it is too early to say if this will
provide the materiality that the Company seeks when assessing new ventures."

 

 

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 (about%3Ablank) :

 

 

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

 Camarco - Financial PR                                                                                                                                                                                                                                                                                 Tel: +44 (0)20 3757 4980

 Billy Clegg / Owen Roberts / Fergus Young                                                                                                                                                                                                                                                              P (mailto:PredatorOilGas@camarco.co.uk) redatorOilGas@camarco.co.uk

                                                                                                                                                                                                                                                                                                      (mailto:PredatorOilGas@camarco.co.uk)

Notes to Editors:

 

Predator is an oil & gas company with a diversified portfolio of scaled
assets including unique and highly prospective onshore Moroccan gas exposure,
with multiple fully financed upcoming catalysts.

 

Predator has two high quality, scalable gas projects in Morocco with fast pace
of commercialisation and blue sky potential. Guercif is a shallow CNG biogenic
gas development with multiple traps and at least 4 separate reservoirs with
recently drilled wells due to be flow tested. The Giant Jurassic Titanosaurus
is a shallow thermogenic gas prospect evaluating 249m of potential gross
reservoir thickness in a trap of 187 km2 for pipeline gas to power, with
pipeline 2.5km from wellhead.   Moroccan gas prices are high, and the fiscal
terms are some of the best in the world.  Predator also has a diversified
portfolio of assets across Ireland and Trinidad, which is a near-term
revenue-generating project.

 

Predator has an experienced management team with particular knowledge in
Moroccan sub surface and operations.  The team specialises in incorporating
modern, proven technologies and processes from Canada and the US to provinces
where the conventional technologies did not allow their hydrocarbon potential
to be revealed.

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  IOEFSDFILELSELF