TIDMPRD
RNS Number : 1344I
Predator Oil & Gas Holdings PLC
31 March 2020
Predator Oil & Gas Holdings PLC
31 March 2020
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")
Company Update
Predator Oil & Gas Holdings Plc (PRD), the Jersey-based Oil
and Gas Company, provides the following company update to the
market in light of the ongoing worldwide situation with regard to
the Coronavirus.
The fundamentals of the Company are unchanged -
well-capitalised, low overheads, revenues anticipated from Trinidad
in due course, Trinidad operations forecast to be profitable even
at lower oil price; drilling opportunity in Morocco which still
aims to exploit a very attractive gas pricing scenario which
remains robust when selling to an industrial domestic market in
competition against more expensive imported fuels.
Trinidad
The Company's Enhanced Oil Recovery ("EOR") project in Trinidad
remains on track for revenues and encouragingly for Predator the
project economics are still attractive even at WTI 20 $/brl.
Trinidad like most countries has implemented restrictions on
movement of people for non- essential work and these policies will
remain in place for at least the next few weeks. The Inniss-Trinity
Field does remain operational and oil field personnel have been
issued with passes to travel to and from the field.
The Company has injected more CO2 into AT-5X as part of
initiating Phase 2 of the CO2 EOR pilot project and has observed
encouraging downhole pressure build-up. The remote access data
gathering system that was put in place before Coronavirus struck
allows the Company to monitor real-time pressure data and to adjust
injection pressures and CO2 injected volumes remotely through the
Company's CO2 EOR operating personnel in the field. The next step
is to inject CO2 at even higher pressures and on a continuous basis
and Predator's CO2 provider is currently working to achieve this
objective as quickly and safely as possible working under the
current revised HSE protocols.
Predator are progressing with desktop work and approvals
processes to further develop its ability to increase the volume of
CO2 supply to the CO2 EOR operations using only our existing
in-country equipment and field site for CO2 equipment layout. The
Company is also importing spare components to ensure there is some
ability to continue operations without being delayed waiting on
replacement components should the need arise during the early
period of the Coronavirus emergency. The Directors of the Company
are encouraged by progress to date, despite a very challenging
global environment and see that this is an opportune time to gather
more technical and reservoir engineering data and to prepare for an
expansion of CO2 EOR operations both within the Inniss-Trinity
field and to other fields in Trinidad, which have been identified
as being potentially attractive for pilot CO2 EOR operations. The
Company has developed a viable template for CO2 EOR projects and
has achieved some recognition of its Intellectual Property rights
in respect of this template. It makes commercial sense for the
Company to focus on developing these new opportunities to a stage
whereby they can be implemented to increase potential cash flow
from CO2 EOR by gradually upscaling, with very low capital
commitments as the market begins to strengthen as Coronavirus is
addressed and ultimately defeated. Positive cash flow at low oil
prices will be critical during this transition period and the
Company now has additional time to potentially expand CO2 EOR
operations in Trinidad for very low capital investment and
therefore potential for additional revenues whilst Morocco remains
in the drill planning stage, allowing the Company to accumulate
additional cash prior to drilling.
Morocco
The rig earmarked for drilling the Company's Guercif prospect is
stacked in a secure yard at SDX Energy, de-manned but ready to be
reactivated for use by Predator with very basic routine maintenance
when restrictions on travel for essential rig crew and service
personnel are eased or lifted. Desktop planning for the well
continues at minimal cost and inventory for the well is still
available within Morocco. No commercial contracts have been or will
be entered into by the Company in respect of drilling until the
Coronavirus restrictions permit normal business operations to be
resumed. Morocco is impacted by Coronavirus and like Trinidad is
not yet at the peak. The Company's target is to be "drill-ready" to
move to execute the drilling programme at the appropriate time
following lifting of Coronavirus restrictions.
Corporate
The Company is still planning to issue its 2019 Annual Accounts
by 30 April 2020 and is working with our auditors to meet this
schedule. These will contain a summary of operations and
developments for the year under review together with a review of
business strategy going forward to mitigate against the impact of
Coronavirus.
Paul Griffiths, CEO of Predator Oil & Gas Holdings Plc said
:
"Following our recent equity fundraise of GBP3.56m before
expenses and given that our fixed corporate overheads are very low,
the Company is very well-placed to ride out the current worldwide
issues which will gradually subside. Our projects are in good order
and we are fortunate that with a strong net cash position we are in
an excellent position to take advantage of any acquisition
opportunities that may arise as a result of the present situation
to enhance our portfolio and create additional value for
shareholders. Whilst we are opportunistic we remain conservative
and focused on our existing projects."
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
Carl Kindinger Chairman 834 600
Paul Griffiths Chief Executive Officer Info@predatoroilandgas.com
Novum Securities Limited Tel: +44 (0) 207
Jon Belliss 399 9425
Optiva Securities Limited
Christian Dennis Tel: +44 (0) 203
137 1902
Follow us also on VOX Market https://www.voxmarkets.co.uk/
Qualified Person's statement:
The information contained in this document has been reviewed and
approved by Mr. Paul Griffiths, Chief Executive Officer. Mr
Griffiths has a BSc in Geology from Imperial College London and is
an Associate of the Royal School of Mines. Mr. Griffiths has over
43 years of relevant experience in the upstream oil industry.
Background to Guercif Drilling Plans
The initial drilling programme will comprise the drilling of the
Moulouya-1 Prospect, subject to all regulatory consents and
approvals, to a depth of 2,000 metres. The drilling rig
mobilisation and drilling operations are expected to take up to 30
days.
Completion of the first well will release US$ 1 million of
PGVL's US$ 1.5 million bank guarantee with ONHYM, subject to final
delivery of all the data from the well to ONHYM.
At PGVL's sole option, and subject to ONHYM approval and all
regulatory consents being received, PGVL shall have the option to
extend the drilling programme by the drilling of either an
appraisal well, if required, or a follow-up exploration well to
capitalise on significantly reduced mobilisation and well services
costs attributable to having an active rig available for immediate
use.
Notes to Editors:
Predator is operator of the Guercif Petroleum Agreement onshore
Morocco which is prospective for Tertiary gas in a prospect 4
kilometres from the Maghreb gas pipeline, and deeper Triassic gas.
A well location has been selected for drilling in Q2 2020 and a rig
option agreement has been exercised.
Predator is an oil and gas exploration company with the
objective of participating with FRAM Exploration Trinidad Ltd. in
further developing the remaining oil reserves in the producing
Inniss Trinity oil field onshore Trinidad, primarily through the
application of C02 EOR technology. Potential for cash flow exists
by executing the Pilot Enhanced Oil Recovery project using locally
sourced carbon dioxide for injection into the oil reservoirs ("C02
EOR"). Near-term expansion and growth potential is focussed on
upscaling the C02 EOR operations in the Inniss-Trinity oil
field.
In addition, Predator also operates exploration and appraisal
assets in licensing options offshore Ireland, for which Successor
Authorisations have been applied for, adjoining Shell's Corrib gas
field in the Slyne Basin on the Atlantic Margin and east of the
Kinsale gas field and Barryroe oil field in the Celtic Sea. Ireland
however remains a very challenging regulatory environment for
business investment in the oil and gas sector and is not the
immediate focus of the Company's near-term operations.
The Company has a highly experienced management team with a
proven track record in the oil and gas industry.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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