TIDMPRD
RNS Number : 2063S
Predator Oil & Gas Holdings PLC
08 March 2023
FOR IMMEDIATE RELEASE
8 March 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 Acquisition of Cory Moruga, future EOR collaboration
and
settlement agreement with Challenger Energy Group Plc
Highlights
-- Fully termed long-form legal documentation for the
conditional acquisition of 100% of the issued share capital of
T-Rex Trinidad Limited ("T-Rex") entered into.
-- Technical due diligence completed to support independent Competent Persons Report.
-- Predator and T-Rex are a natural fit for a miscible CO2
enhanced oil recovery project ("CO2 EOR")
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 update that, further to entry
into a binding term sheet with Challenger Energy Group PLC and
relevant subsidiary entities ("CEG") as announced on 19 December
2022 ("the Transaction"), the Company has now completed all
confirmatory due diligence and the Company and CEG have
subsequently entered into fully termed long-form legal
documentation.
The terms remain unchanged from those previously announced on 19
December 2022, being:
-- The Company will acquire 100% of the issued share capital of
T-Rex Trinidad Limited ("T-Rex"), an indirectly wholly owned
subsidiary of CEG that holds CEG's 83.8% interest in, and
operatorship of, the Cory Moruga licence;
-- CEG will retain the option in the future to repurchase 25% of
Predator's share in T-Rex on an agreed basis;
-- Predator and CEG have established a collaboration in relation
to CO(2) EOR activities and projects in other areas in Trinidad;
and
-- the Company and CEG have agreed to a mutual settlement and
discharge of all disputes and claims in relation to the
Inniss-Trinity CO(2) EOR pilot project.
Completion of the Transaction is 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. Completion will
occur 7 days after satisfaction of this condition. The parties have
agreed to work together to secure the required consents and
agreements with MEEI and thus achieve completion as soon as
reasonably practicable on or before 30 May 2023, with a long stop
date of 31 August 2023.
Competent Persons Report
Following receipt of extensive technical data from CEG and the
completion of the Company's more in depth in-house technical due
diligence, including an analysis of the 3D seismic data with
integration of past wells drilled on the Cory Moruga Licence, the
Company has updated the material available for a Competent Persons
Report ("CPR") and expects to have this completed well in advance
of the required MEEI regulatory consents and Completion.
Paul Griffiths, Executive Chairman of Predator Oil & Gas
Holdings Plc commented :
"We are delighted to have had the opportunity to evaluate the
Cory Moruga technical database and are extremely upbeat about the
opportunity for unrealised potential in Cory Moruga, both for
conventional appraisal and production and for the application of
our CO2 EOR expertise. Cory Moruga is a near-virgin field unlike
many of Trinidad's onshore oil fields. As a result it is an
excellent candidate for miscible CO2 EOR projects.
The CPR will be important for independently validating these
potential resources."
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
Optiva Securities Limited Tel: +44 (0) 203 137 1902
Christian Dennis, CEO
Ben Maitland, Corporate Finance Tel. +44 (0) 203 034 2707
Flagstaff Strategic and Investor Communications Tel: +44 (0) 207 129 1474
Tim Thompson predator@flagstaffcomms.com
Mark Edwards
Fergus Mellon
Notes to Editors:
About Cory Moruga field
-- The Cory Moruga licence is a direct licence from the
Trinidadian Ministry of Energy and Energy Industries ("MEEI") in
which Challenger Energy's wholly owned subsidiary T-Rex Resources
(Trinidad) Limited ("T-Rex"), holds an 83.8 % interest, alongside
its partner Touchstone Exploration Inc. which has 16.2% interest.
T-Rex is operator.
-- The Cory Moruga licence includes the Snowcap oil discovery,
with oil previously having been produced on test from the Snowcap-1
and Snowcap-2ST wells. On the basis of the production tests, a
development plan was submitted in 2018, prior to Challenger Energy
taking control of the asset, however, the block was not further
developed. Subsequent to the acquisition of Columbus Energy
Resources PLC in 2020, Challenger Energy undertook a detailed
technical review of its Trinidad portfolio and assessed that Cory
Moruga field required further appraisal before a commercial
development decision could be made.
-- Challenger Energy considers the Cory Moruga licence to be
non-core to its cash flow generative production-focused business in
Trinidad, and therefore no further work has been planned for the
Cory Moruga field in the near-term. At the same time, Predator
considers that the Cory Moruga field represents an ideal candidate
for a CO(2) EOR project.
Predator is operator of the Guercif Petroleum Agreement onshore
Morocco which is prospective for Tertiary gas in prospects less
than 10 kilometres from the Maghreb gas pipeline. The MOU-1 well
has been completed and a follow-up testing programme is being
finalised to coordinate with a further drilling programme beginning
in 2022.
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 to produce "greener" oil.
In addition, Predator also 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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END
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