TIDMPRD
RNS Number : 7405O
Predator Oil & Gas Holdings PLC
05 October 2023
FOR IMMEDIATE RELEASE
5 October 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 gas offtake, development financing and rigless
testing
Highlights
-- Discussions opened to sell the Company's share of gas at the well head
-- Financing options for the Company's share of future potential
CNG development costs being discussed with preferred parties
-- Rigless testing programme amended to test MOU-3 first
-- High impact MOU-3 well to lead commercial negotiations for offtake of gas
Predator Oil & Gas Holdings Plc (LSE: PRD), the Jersey based
Oil and Gas Company with near-term gas operations focussed on
Morocco, announces an update for the Guercif Compressed Natural Gas
("CNG") project.
The Company has opened exploratory discussions with a group
focussed on the downstream energy business to potentially sell its
share of gas produced at the well head subject to an approved CNG
development plan.
In order to accelerate the timing of substantive negotiations
for the sale of its share of gas, subject to an approved
Declaration of Commerciality, the Company has decided to amend its
rigless testing programme. MOU-3 will now be the first well to be
tested. This will establish the potential to maximise gas flow
rates for the purpose of setting commercial parameters for the sale
of the Company's share of potential gas produced to the present and
future CNG industrial market irrespective of pre-drill production
profile constraints imposed by its initial "Proof of CNG Concept"
strategy.
The Company has been waiting for over three weeks for an
in-country wireline logging unit. A perforating depth control (PDC)
log is required to depth correlate the perforating points with a
similar log run before the casing was set during well completion.
Critically this ensures that perforations are aligned with the
reservoir sand intervals to be tested.
As a result of this delay in the provision of a third party
service the current slot for using Sandjet as the means of
perforating has passed and therefore this phase of the testing
programme is now being re-scheduled.
In order not to delay further it has been decided to test MOU-3
and MOU-1 using conventional perforating guns.
The Company is confident that the testing programme will deliver
the results necessary to progress commercial negotiations for the
offtake of its share of future potential CNG gas from the well
head.
Rigless testing MOU-3 using conventional perforating guns is
currently forecast to begin on or before 16 October 2023, assuming
that the wireline logging unit is released from its present
contract on or before 10 October 2023. The Company will provide an
update if there is any change to this date.
A follow-up Sandjet testing programme will take place later to
test other reservoir intervals that are likely to respond better to
the Sandjet perforating technique compared to conventional
perforating guns.
The Company is also in discussion with several parties regarding
the financing of the CNG development. Upon achieving acceptable
financial terms funds set aside in the Company's strong balance
sheet would be re-purposed for follow-up appraisal drilling.
Paul Griffiths, Executive Chairman of Predator, commented:
"Following the completion of drilling and prior to the execution
of the rigless testing programme the Company has had a period of
time to integrate the results from its MOU-1, MOU-2, MOU-3 and
MOU-4 wells and mature its understanding of the structures holding
possible gas accumulations. On this basis the MOU-3 well and
structure is now defined as the focal point for a potential CNG
development hub. As a result this well has been promoted to the
first well in the rigless testing programme.
Good progress has been made on opening discussions for the
offtake of gas on a larger scale than was previously envisaged by
the "Proof of CNG Pilot Concept" strategy.
Financing options are being crystallised which will allow funds
to be re-purposed for further appraisal drilling activity and value
accretion through drilling success."
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 and the MOU-3 well drilled in 2023 have been completed for
rigless testing in 2023. Focus is on supplying compressed natural
gas to the Moroccan industrial market. Further drilling activity is
being progressed to evaluate Jurassic prospects.
Predator is seeking to apply CO2 EOR techniques onshore Trinidad
which have the advantage of sequestrating anthropogenic carbon
dioxide. Acquisition opportunities are also being progressed which
are compatible with this strategy.
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 successfully executing operations in the oil
and gas sector.
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END
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