TIDMPRD
RNS Number : 7201K
Predator Oil & Gas Holdings PLC
30 August 2023
FOR IMMEDIATE RELEASE
30 August 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")
Operations update
Highlights
-- Guercif rigless testing on track and scheduled for September execution
-- CNG development planning on schedule
-- Future attractive risk-reward Jurassic drilling being matured
-- Cory Moruga acquisition opportunity making progress
-- Continuing dialogue on Corrib South successor authorisation
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 operations update.
Morocco
Testing programme
The proposed rigless testing programme has been presented to the
Office National des Hydrocarbures et des Mines ("ONHYM").
MOU-1 will be the first well in the rigless testing programme to
be performed by Energy Consulting Services ("ECS") based in France
and with a licence to use and operate the Sandjet perforating
technology.
Ten individual horizons within the interval 1217 to 1300 metres
TVD KB have been selected for perforating.
In the interval 769 to 912 metres TVD KB a further eight
individual horizons have been selected for perforating.
Four additional data points between 1397 to 1400.5 and 967 to
991 metres and at 1035 metres TVD KB may be added to provide
information that may be potentially useful for the finalisation of
the MOU-3 rigless testing programme.
The MOU-1 well will establish Sandjet rigless testing procedures
and will adjust the operating parameters to optimise the depth of
penetration into the reservoirs of interest if and where
required.
Testing individual sands in sequence from the bottom of the
MOU-1 well upwards will evaluate the potential for co-mingling
different sand intervals on production and help determine if there
is a requirement to isolate any interval downhole based on any
material water cut.
An alternative to a coiled tubing unit originally sourced out of
Tunisia, which is required to run the Sandjet perforating tool, has
been now been sourced in France by ECS. This will enable the
testing programme to commence at the earliest possible opportunity
in September. Shipping logistics from Tunisia, due to competition
for vessel cargo space, created uncertainty regarding the exact
scheduling of commencement of field operations.
The adjusted schedule for delivery of the Sandjet equipment is
currently being put together by ECS and a further announcement will
be made when this is finalised..
Future drilling opportunities
The updip appraisal of the Jurassic target encountered in MOU-4
is a key objective of the Company.
Three preliminary drilling locations are being selected for
inclusion in a new Environmental Impact Assessment ("EIA").
Well design and sourcing of long lead well inventory has
commenced.
A field trip is being planned for the autumn to evaluate the
reservoir potential of the entire interval of interest in Jurassic
surface exposures to the south of the Guercif licence area.
Geochemical source rock quality and maturation studies,
including evidence for migrated gas, for the Jurassic section
penetrated in the MOU-4 well are expected to be completed in
September.
Two other near-term drilling opportunities are also being
assessed, one location covered by an existing EIA and the other to
be added to the new EIA. Evaluation of the higher pressure shallow
gas encountered in MOU-3 and a southwest extension of the MOU-3
structure would be the targets for future drilling.
Trinidad
On 8 March 2023, the Company announced that it had entered into
an agreement ("Agreement") with Challenger Energy Group Plc
pertaining to the sale of the Cory Moruga asset in Trinidad. In
that announcement, it was noted that completion of the transaction
was 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. The Agreement stipulated a long stop date
of 31 August 2023 for securing the relevant consent and agreements
from MEEI.
Dialogue with MEEI continues, with the parties having made
progress on reaching acceptable terms, and the parties remain
confident that appropriate consents and agreement will be
forthcoming. However, completion of the transaction will not be
possible by 31 August 2023. Accordingly, the parties have mutually
agreed to extend the last date for completion of the intended
transaction by 3 months, to 30 November 2023.
The Company sees the opportunity for a future drilling programme
at Cory Moruga with the objective of confirming hydrocarbon
resources and delivering a high productivity well in a primarily
undeveloped field.
As part of the Agreement, and as advised on 8 March 2023, the
parties had also agreed to establish a collaboration in relation to
CO2 EOR activities and projects in other areas in Trinidad. In
parallel to the ongoing process to complete the s ale of the Cory
Moruga asset in Trinidad, the parties have progressed discussions
seeking to re-establish partnering arrangements in relation to
other assets, in particular the Inniss-Trinity field - further
announcements will be made as appropriate.
In the longer term, scaling up of potential CO2 EOR operations
and the creation of cost-saving operational synergies are likely to
be considered by the Company subject to updating of project
economics. CO2 EOR operations would initially be conducted on an
individual well basis to potentially provide a contribution to
Company overheads and operating costs as a Cory Moruga drilling
programme progresses, subject to regulatory consents.
Ireland
On the 28 July 2023 the Company received an acknowledgement from
the Department of the Environment, Climate and Communications
("DECC") that a request made on behalf of the Company and its
potential partner in the event of a future award of a Frontier
Exploration Licence in respect of "Corrib South" was receiving
attention.
Corrib South has mid and high case estimates for gross gas
resources of 137.8 and 484.8 BCF respectively (PRD net interest
50%) with a 44% chance of geological success and a 50% chance of
development (Tracs International Limited July 2023).
Paul Griffiths, Executive Chairman of Predator Oil & Gas
Holdings Plc commented :
"The Sandjet rigless testing programme is on track and scheduled
to be executed and completed in September .
In parallel with the testing programme agreements for the sale
of gas and sourcing and scheduling for delivery of long lead items
required for the CNG development and an Environmental Impact
Assessment are being progressed.
Company strategy is to develop a revenue-generating business
opportunity capable of being monetised under the right market
conditions.
Opportunities for further drilling, in particular to evaluate
the Jurassic structure partly penetrated by MOU-4, are being
developed. The strategy has a clear objective to identify and
pursue balanced risk-reward projects where early near-term
shareholder value can be delivered through drilling success.
Current market dynamics support drilling activity and very
near-term value creation.
Subject to rigless testing results, an initial Compressed
Natural Gas development can potentially be funded by a debt
instrument linked to production thereby freeing up existing cash
resources for more high impact drilling.
Trinidad offers a separate potential future drilling opportunity
in an under-developed onshore field. The project is capable of
adding primary hydrocarbon resources that can grow into a
significant cash-generating business. There are few such
opportunities remaining onshore in Trinidad.
Corrib South in Ireland remains an attractive commercial
proposition for gas whilst also potentially contributing to the
longevity and commerciality of the Corrib infrastructure through
the energy transition. This could underpin potential use of the
infrastructure beyond the Energy Transition for blended gas and
hydrogen storage.
The Company remains active on three fronts and will continue to
deliver shareholder value as and when the opportunity arises within
its portfolio of projects."
For further information visit 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 :
Enquiries:
Predator Oil & Gas Holdings Plc Tel: +44 (0) 1534 834 600
Paul Griffiths Executive Chairman Info@predatoroilandgas.com
Lonny Baumgardner Managing Director
Novum Securities Limited Tel: +44 (0)207 399 9425
David Coffman / Jon Belliss
Fox-Davies Capital Tel +44 (0)203 884 7447
Jerry Keen jerry@fox-davies.com
Flagstaff Strategic and Investor Communications Tel: +44 (0)207 129 1474
Tim Thompson 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 less than 10
kilometres from the Maghreb gas pipeline. The MOU-1 well drilled in
2021 is being prepared for a follow-up testing programme to
coordinate with a further drilling programme to move the project to
a CNG development stage.
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.
Predator 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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