TIDMPRD
RNS Number : 0274B
Predator Oil & Gas Holdings PLC
05 October 2020
FOR IMMEDIATE RELEASE
5 October 2020
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")
Operational Update and CO2 Supply Trinidad
Predator Oil & Gas Holdings Plc (PRD), the Jersey-based Oil
and Gas Company with operations in Trinidad, Morocco,
and Ireland, provides the following operational update.
Trinidad
The Exclusivity Period under the terms of the Heads of Agreement
for C02 Gas Sales entered into by Predator with Massy Gas Products
("Massy"), has been extended to 31 March 2022.
Approvals to return AT-5X to production; to commission the new
CO2 EOR production facilities, provided by the Company; and to
continuously inject C02 at AT13 are progressing satisfactorily and
a further update will be given in due course.
In accordance with the Well Participation Agreement ("WPA") with
FRAM Exploration Trinidad Ltd. ("FRAM") (and as subsequently varied
by mutual agreement), the Company advises that it is not entering
into a Sale and Purchase Agreement to acquire FRAM by the
previously agreed deadline of 30 September 2020. Only this specific
aspect of the WPA has lapsed, all other conditions of the WPA
remaining in full force and effect.
After careful consideration, the Company decided that acquiring
ownership of an oil field that continues to produce by conventional
methods does not fit with its business strategy, which is focussed
on addressing climate change concerns through sequestrating CO2 and
exploring for and developing gas. Furthermore, in line with the
Company's prudent management of resources through the COVID-19
crisis, it was deemed inappropriate to enter into a corporate
transaction that would involve significant transaction costs;
potential delays in regulatory approvals; taking on liabilities and
administrative burdens associated with an Incremental Production
Service Contract; and potentially significant shareholder
dilution.
Extension of exclusivity over Trinidad's entire surplus liquid
CO2 supply and the successful execution of Trinidad and Tobago's
first large scale CO2 EOR project for many years are compatible
with the Company's strategy of developing and offering a flexible
CO2 EOR services business in Trinidad to other operators. This is
achievable without the onerous burden of licence liabilities.
Morocco
An independent third party technical update on the new MOU-4
Prospect has been completed.
It confirms that the MOU-4 prospect is seismic
amplitude-supported and covers an area of 38 km(2). The MOU-4
Prospect is located 6 kilometres from the MOU-1 drill site and
offers the opportunity for additional drilling whilst the rig is
mobilised on the MOU-1 site. The primary gas target is prognosed to
occur at 1475 metres TVD KB.
SLR Consulting Ireland Ltd will complete a Competent Persons
Report for the new MOU-4 Prospect and an update on the results will
be provided.
COVID-19 restrictions remain in force. The Company remains
"drill ready" based on the operational planning and site visit
undertaken in March this year and bids for well services that have
been received.
Ireland
An independent third party preliminary Front End Engineering
Design study has been authorised by the Company. This will address
the onshore gas transmission network upgrades required to
accommodate gas from a new entrant to the gas transmission grid at
the scoping volumes of up to 300 mm cfgpd that are potentially to
be delivered from the offshore Floating Storage and Regasification
Unit vessel. "First Gas" is projected for Q1/Q2 2024, subject to
receipt of all regulatory and government consents.
Paul Griffiths, Chief Executive of Predator, commented:
"We are pleased to be continuing to make operation progress on
all fronts despite the obvious constraints that COVID-19 impose,
particularly in an onshore operating environment embedded within
local communities. We have prudently taken steps to ensure we focus
personnel and cash resources during COVID-19 on maturing our
businesses and developing credible additional opportunities for
them in order to strengthen the ability to generate potential,
project-backed, M & A value. Acquiring an asset such as FRAM
would have been non-sensical in this context. It would have
potentially diverted valuable resources away from Morocco, which
remains the greatest potential risk/reward prize in the Company's
portfolio and is an absolute priority for the Company to drill as
early as COVID-19 restrictions allow."
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
Dr. Stephen Staley Non-executive Chairman Info@predatoroilandgas.com
Paul Griffiths Chief Executive Officer
Novum Securities Limited Tel: +44 (0) 207 399 9425
Jon Belliss
Optiva Securities Limited Tel: +44 (0) 203 137 1902
Christian Dennis
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 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 a Pilot Enhanced Oil Recovery project using locally
sourced liquid 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
and potential acquisitions of assets suitable for C02 EOR
development, subject to all necessary approvals.
In addition, Predator also owns and operates exploration and
appraisal assets in current 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.
Predator is operator of the Guercif Petroleum Agreement onshore
Morocco which is initially prospective for Tertiary gas in
prospects less than 10 kilometres from the Maghreb gas
pipeline.
The Company has a highly experienced management team with a
proven track record in the oil and gas industry.
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END
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