Predator Oil & Gas Holdings PLC New Permit Negotiated Onshore Morocco (9808I)
November 30 2018 - 1:00AM
UK Regulatory
TIDMPRD
RNS Number : 9808I
Predator Oil & Gas Holdings PLC
30 November 2018
30 November 2018
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")
New Permit Negotiated onshore Morocco
Predator Oil & Gas Holdings Plc (PRD), the Jersey-based Oil
and Gas Company, with a portfolio of attractive upstream gas assets
adjacent to European gas infrastructure entry points, is pleased to
announce that an application for an exclusive licence for
hydrocarbon exploration and appraisal onshore northern Morocco has
been accepted by the Office National des Hydrocarbures et des Mines
("ONHYM") acting on behalf of the State.
The formal award of the exclusive licence is subject to the
provision by Predator of a Bank Guarantee prior to a formal Signing
Ceremony.
The licence will be for 8 years, split into 3 phases with an
Initial Period of 30 months followed by First and Second Extension
Periods of 36 and 30 months' duration respectively.
HIGHLIGHTS
-- Exclusive licence for exploration covering an area of
7,269km(2) and comprising the Guercif Permits I, II, III and IV,
lying east of the producing gas fields of the Gharb Basin and
northwest of the Tendrara gas project.
-- Predator will be operator through its wholly-owned subsidiary
Predator Gas Ventures Ltd with 75% equity interest and ONHYM 25%.
ONHYM has the right to "back-in" for up to and including 25% equity
in the event of a hydrocarbon development by paying its share of
forward costs
-- The work programme for the Initial Period will include 250
kilometres of reprocessing of existing seismic data and the
drilling of one well to a minimum depth of 2,000 meters to test a
large seismic anomaly interpreted as being indicative of the
presence of shallow Tertiary gas, similar to the producing Gharb
Basin.
-- The Guercif Licence is also prospective for deeper Triassic
gas and Jurassic oil and gas which can be evaluated in the First
and Second Extensions
-- The initial target for gas lies just 9 kilometres north of
the Maghreb - Europe gas pipeline, which has spare capacity in the
event of a major gas discovery, which is the desired objective of
Predator's exploration planning
-- Government taxes are confined principally to a 5% royalty for
gas and 30% Corporation Tax but with a total exemption for the
first 10 years of production
The Company will provide further updates on progress in Morocco
as activities ramp up.
Paul Griffiths, CEO of Predator Oil & Gas Holdings Plc
said:
"Predator management selected Guercif based on its 12 years'
experience of exploring and financing Moroccan opportunities. It
represents an asset that will fit very well with the Company's
strategy of developing gas opportunities adjacent to
infrastructure, where the geological and commercial risks can be
shown to be low. Guercif represents a high impact, low cost,
near-term drilling opportunity in a sophisticated and stable
business and operating environment that is well understood by
management. We are excited by this opportunity and by the potential
for cash flow from Trinidad C02 EOR operations through 2019, which
can underpin our plans to become a significant gas player connected
to the European gas market."
- ENDS -
For further information please contact:
Predator Oil & Gas Holdings Plc +44 (0) 1534 834 600
Sarah Cope Chairman Info@predatoroilabdgas.com
Paul Griffiths Chief Executive Officer
Novum Securities Ltd (Broker)
Jon Bellis +44 (0) 207 399 9425
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END
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