TIDMPRD
RNS Number : 1356V
Predator Oil & Gas Holdings PLC
30 November 2023
FOR IMMEDIATE RELEASE
30 November 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")
Memorandum of Understanding in relation to Gas Sales
and Collaboration Agreements with Afriquia Gaz S.A.
Highlights
-- Memorandum of Understanding signed with Afriquia Gaz S.A.
-- 12-month exclusivity period to negotiate legally binding Gas Sales Agreement
-- CNG to be purchased at the point of delivery of the gas to the CNG trailers
-- Downstream transport and sale of gas to end user will be for Afriquia Gaz S.A.
-- MOU facilitates increasing gas sales to up to 50 million cf/d
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 the signing of a Memorandum of
Understanding in relation to Gas Sales and Collaboration Agreements
(the "MOU") with Afriquia Gaz S.A. ("Afriquia" and together the
"Parties").
Duration of the MOU is for one year commencing 27 November
2023.
During the term of the MOU the Parties shall discuss in good
faith and endeavour to agree the terms and conditions of a legally
binding gas sales agreement ("GSA") between the Parties whereby
Predator agrees to sell and Afriquia to off-take and purchase the
CNG corresponding to Predator's participating interest in the
Guercif Licence.
Afriquia will have a period of exclusivity during the duration
of the MOU to negotiate the terms and conditions of a mutually
acceptable GSA with Predator.
Subject to negotiations and terms and conditions to be mutually
agreed between the Parties the GSA is anticipated to include the
following scoping terms:
-- Afriquia to purchase gas at the point of delivery of the gas to the CNG trailers;
-- Predator shall fund and operate the CNG development and production facilities;
-- Investment in CNG trailers shall either be through a purchase
arrangement or through a leasing contract which shall be negotiated
and agreed between the Parties and will be dependent on whether
Predator or Afriquia are the providers of the CNG trailers;
-- Take-or-Pay provisions (and associated make-up and carry
forward provisions) and fixed term contracts with an agreed
Purchase Price for 8 to 10 years;
-- It is anticipated that any increases in the initial
contracted daily deliveries shall be phased over 3 years and shall
be subject to an absolute cap of 1.4 million cubic metres per day
(equivalent to 50 million cf/day) and the results of the Guercif
Rigless Testing Programme and 2024 Drilling Programme.
For information on Afriquia Gaz S.A.
https://www.afriquiagaz.com/
Paul Griffiths, Executive Chairman of Predator, commented:
"We are pleased to have agreed the MOU with Afriquia Gaz S.A. in
relation to entering into substantive discussions regarding a Gas
Sales Agreement upon completion of the rigless testing programme at
Guercif.
This is the first MOU of its kind in Morocco to address
specifically the sale of CNG at a scale of up to potentially 50
million cubic feet of gas per day over time.
The MOU ensures that we have the solid foundation to penetrate
the downstream Moroccan industrial market. It allows us to focus on
our core upstream strengths which are the identification and
maturing of exploration assets where success is aligned with
capturing the greatest uplift for shareholders in the hydrocarbon
value chain for prudent levels of investment."
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 2024. 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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