REG - Predator O&G Hldgs - Settlement Agreement with Challenger Energy

Predator Oil & Gas HoldingsAnnouncement

08/03/2023 07:00

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RNS Number : 2063S  Predator Oil & Gas Holdings PLC  08 March 2023

FOR IMMEDIATE RELEASE

8 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")

 

Update on Acquisition of Cory Moruga, future EOR collaboration and

settlement agreement with Challenger Energy Group Plc

 

    Highlights

 

·    Fully termed long-form legal documentation for the conditional
acquisition of 100% of the issued share capital of T-Rex Trinidad Limited
("T-Rex") entered into.

 

·    Technical due diligence completed to support independent Competent
Persons Report.

 

·    Predator and T-Rex are a natural fit for a miscible CO2 enhanced oil
recovery project ("CO2 EOR")

 

 

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 update that, further to entry into a binding term sheet with
Challenger Energy Group PLC and relevant subsidiary entities ("CEG") as
announced on 19 December 2022 ("the Transaction"), the Company has now
completed all confirmatory due diligence and the Company and CEG have
subsequently entered into fully termed long-form legal documentation.

The terms remain unchanged from those previously announced on 19 December
2022, being:

·    The Company will acquire 100% of the issued share capital of T-Rex
Trinidad Limited ("T-Rex"), an indirectly wholly owned subsidiary of CEG that
holds CEG's 83.8% interest in, and operatorship of, the Cory Moruga licence;

·    CEG will retain the option in the future to repurchase 25% of
Predator's share in T-Rex on an agreed basis;

·    Predator and CEG have established a collaboration in relation to
CO(2) EOR activities and projects in other areas in Trinidad; and

·    the Company and CEG have agreed to a mutual settlement and discharge
of all disputes and claims in relation to the Inniss-Trinity CO(2) EOR pilot
project.

 

Completion of the Transaction is 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.
Completion will occur 7 days after satisfaction of this condition. The parties
have agreed to work together to secure the required consents and agreements
with MEEI and thus achieve completion as soon as reasonably practicable on or
before 30 May 2023, with a long stop date of 31 August 2023.

Competent Persons Report

 

Following receipt of extensive technical data from CEG and the completion of
the Company's more in depth in-house technical due diligence, including an
analysis of the 3D seismic data with integration of past wells drilled on the
Cory Moruga Licence, the Company has updated the material available for a
Competent Persons Report ("CPR") and expects to have this completed well in
advance of the required MEEI  regulatory consents and Completion.

 

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

"We are delighted to have had the opportunity to evaluate the Cory Moruga
technical database and are extremely upbeat about the opportunity for
unrealised potential in Cory Moruga, both for conventional appraisal and
production and for the application of our CO2 EOR expertise. Cory Moruga is a
near-virgin field unlike many of Trinidad's onshore oil fields. As a result it
is an excellent candidate for miscible CO2 EOR projects.

The CPR will be important for independently validating these potential
resources."

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:

About Cory Moruga field

·    The Cory Moruga licence is a direct licence from the Trinidadian
Ministry of Energy and Energy Industries ("MEEI") in which Challenger Energy's
wholly owned subsidiary T-Rex Resources (Trinidad) Limited ("T-Rex"), holds an
83.8 % interest, alongside its partner Touchstone Exploration Inc. which has
16.2% interest. T-Rex is operator.

 

·    The Cory Moruga licence includes the Snowcap oil discovery, with oil
previously having been produced on test from the Snowcap-1 and Snowcap-2ST
wells. On the basis of the production tests, a development plan was submitted
in 2018, prior to Challenger Energy taking control of the asset, however, the
block was not further developed. Subsequent to the acquisition of Columbus
Energy Resources PLC in 2020, Challenger Energy undertook a detailed technical
review of its Trinidad portfolio and assessed that Cory Moruga field required
further appraisal before a commercial development decision could be made.

 

·    Challenger Energy considers the Cory Moruga licence to be non-core to
its cash flow generative production-focused business in Trinidad, and
therefore no further work has been planned for the Cory Moruga field in the
near-term. At the same time, Predator considers that the Cory Moruga field
represents an ideal candidate for a CO(2) EOR project.

 

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 finalised to coordinate with a further drilling
programme beginning in 2022.

 

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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