REG - Predator O&G Hldgs - Rigless testing update

Predator Oil & Gas HoldingsAnnouncement

07/08/2024 07:00

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RNS Number : 4429Z  Predator Oil & Gas Holdings PLC  07 August 2024

FOR IMMEDIATE RELEASE

7 August 2024

 

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")

 

 

Morocco - rigless testing update

 

Predator Oil & Gas Holdings Plc (PRD), the Jersey-based Oil and Gas
Company with near-term hydrocarbon operations focussed on Morocco and Trinidad
announces an operations update.

 

 

·    Rigless testing has commenced

 

·    Regulatory granting of the entry into the First Extension Period

 

·    First use of new Sandjet and coiled tubing technology in Morocco

 

·    MOU-3 rigless testing programme unchanged

 

Sandjet rigless testing - CNG to Moroccan industrial market

Sandjet rigless testing tools and chemicals required for rigless testing
operations were imported into Morocco following customs clearance
documentation issued on 12 June 2024.

The remaining rigless testing equipment was imported after customs clearance
was granted on 2 August 2024. This comprised primarily the Baker Hughes
logging and coiled tubing units which were sourced from the Netherlands.
Pictures of the coiled tubing unit, new to Morocco, have been uploaded to the
Company's website at www.predatoroilandgas.com
(http://www.predatoroilandgas.com) to provide context for the scale of the
operation being undertaken by the Company.

The delay in customs clearance was beyond management's control.

First Extension Period

Ratification of Petroleum Agreement Amendment No. 4 which extended the Initial
Period of the Guercif Petroleum Agreement and corresponding Exploration
Permits to 61 months until 5 June, 2024 was announced on 1 May 2024.

An application to enter the First Extension Period was submitted as required 2
months before the expiry of the Initial Period on 5 June 2024.

Confirmation of entering the First Extension Period requires obtaining the
required statutory approvals under the form of an order executed by the
Ministry of Energy approving the extension to the Exploration Permits into the
First Extension Period.

MOU-3 rigless testing programme unchanged

The Company's rigless testing operations commenced before 5 June 2024 with
site preparations at MOU-3 with initial customs clearances received on 12 June
2024 to import the Sandjet testing tools and chemicals. Unfortunately it was
beyond management's control that the programme would be subsequently impacted
by the ratification required to approve entering the First Extension Period
with a corresponding delay in receiving further customs clearances.

The Company took steps to manage the mobilisation logistics to ensure that no
significant standby costs were incurred whilst waiting on regulatory
documentation.

At all times the Company's primary concern was to maintain the ability to
utilise the key rigless testing equipment and services within its available
time slot for exclusive use by the Company. This we have successfully
achieved.

The Company is introducing new rigless testing technology in the form of the
Sandjet testing tools and the Baker Hughes coiled tubing unit. Positive
results from MOU-3 could potentially transform rigless testing strategies and
increase cost-effectiveness.

The MOU-3 testing programme remains as announced on 6 June 2024.

A further operations update will follow once the MOU-3 rigless testing
programme is completed.

The Company does not intend to provide an operations schedule for testing at
present as plans remain flexible and may be modified depending on initial test
results and operational efficiencies.

The Company thanks ONHYM for their ongoing support and partnership through the
regulatory process which largely resulted from the Company's desire to keep
the momentum of operations going in order to avail of limited availability of
well services equipment in a competitive global market.

Paul Griffiths, Executive Chairman of Predator, commented:

"It goes without saying that the last 12 months following the achievement of
the MOU-3 and MOU-4 drilling programmes has been immensely frustrating for
Directors, Management and shareholders alike. Planning for rigless testing has
been impacted by several amendments to the Initial Period of the Guercif
Petroleum Agreement, whilst trying to balance access to limited well services
and equipment caused by global competition. Ours is a big operation for
Morocco but not by global standards. We have to be patient and creative.

However, by entering the First Extension Period we can look forward to
re-establishing our operational momentum and newsflow.

Our near-term ability to supply CNG to the Moroccan industry is more advanced
than other possible options. The Company is debt-free which allows it to have
greater flexibility when considering different options, including M&A
transactions and a partial divestment, for the modest levels of development
finance required for "First Gas". This is why Afriquia Gaz remains heavily
engaged with the Company and supportive of our efforts to get gas to market at
the very earliest opportunity."

 

For further information visit www.predatoroilandgas.com (about:blank)

 

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:blank) :

 

Enquiries:

 Predator Oil & Gas Holdings Plc                                                                                                                                                                                                                                                                        Tel: +44 (0) 1534 834 600

 Paul Griffiths                Executive Chairman                                                                                                                                                                                                                                                       Info@predatoroilandgas.com (about:blank)

 Lonny Baumgardner    Managing Director

 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.

 

Predator Oil & Gas Holdings plc is listed on London Stock Exchange's Main
Market with a Standard Listing (symbol: PRD). For further information, visit
www.predatoroilandgas.com (https://www.predatoroilandgas.com/)

 

 

 

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