FOR
IMMEDIATE RELEASE
25 September 2024
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")
Report and Interim Financial
Statements for the 6 months to 30 June 2024
Financial highlights:
· Fully funded to satisfy all commitments for the next twelve
months
· Preparing the organisational structure necessary to
accelerate the transition to production and a possible future
partial divestment and monetisation of discovered gas onshore
Morocco
· Total comprehensive Loss for the 6 months period is £978,238
(£2,361,721 for the 6 months period ended
30 June 2023)
· Cash
balance, at period end of £4,352,190 (2023 year end:
£6,484,034)
· A
further £1,186,155 (US$1,500,000) held as restricted
cash
· £304,476 (before expenses) raised through the exercise of
5,221,203 broker warrants, 2,890,908 of the warrants exercisable at
5.5 pence per share; 1,780,412 of the warrants exercisable at 5.7
pence per share; 549,883 of the warrants exercisable at 8.0 pence
per share
· No
material shareholder dilution
· No
debt
· Application dated 5 June 2024 to enter the First Exploration
Period of the Guercif Petroleum Agreement submitted which on
ratification will reduce the Company's firm regulatory financial
commitments and work programmes
· Issued share capital 570,382,865 (31 December 2023:
565,161,662)
Operational highlights:
· Onshore Morocco initial conventional rigless testing
programme successfully executed and preparations for next stage to
evaluate Sandjet perforating technology performance
progressing
· MOU-3 shallow higher pressure gas
remapped with gross P50 and P10 gas-in-place of 37.75 and 53.81 BCF
respectively - potentially a separate
standalone CNG development project.
· Preparations to drill the MOU-5 well to test the large 187km2
Titanosaurus Jurassic structure have been progressed and refined
based on new desktop seismic modelling of potential reservoirs
which has increased gross gas-in-place estimates to 8.036 and 14.729 TCF - establishing a potential
gas-to-power development option adjacent to the Maghreb Gas
Pipeline
· Onshore Trinidad low-cost administrative office established
and in-country operating capability being progressed
· Additional well intervention opportunities identified and
being advanced in the context of economies of scale and enhancing
near-term potential production growth through the application of
wax treatments
· Independent Technical Report for Cory Moruga gives gross,
following the acquisition of an additional 16.2% equity interest,
Contingent and Prospective P50 and P10 resources of 14.31 and 21.41
million barrels respectively
· Offshore Ireland the application for a successor
authorisation for the Corrib South Licensing Option 16/26 has
progressed to the final stages of satisfying GSRO conditions for
its potential award and a farmin. Proposal has been received from a
well-funded industry entity with downstream production
Post reporting date:
· On
the 7 August 2024 the Company announced a rigless testing update
and customs clearances on the 12 June and 2 August 2024 for the
import of the Sandjet testing tools and the Baker Hughes logging
and coiled tubing units respectively.
· On
the 8 August 2024 the Company gave an update on preparations for
the drilling of the high impact well MOU-5. Based on an updated
Independent Technical Report, taking into account seismic modelling
of the target Jurassic reservoir interval, gave gross P50 and P90
in-place gas of 8.036 and 14.729 TCF respectively.
Based
on the evidence of the presence of helium in the MOU-3 analysed gas
sample from the Moulouya Fan, the helium potential of the MOU-5
structure and surrounding area was identified for the first time
for further evaluation and follow up through the drilling of
MOU-5.
The granting of entry into the First
Extension Period of the Guercif Petroleum Agreement was
confirmed.
Predator Oil & Gas Holdings
Plc (PRD), the Jersey-based Oil and Gas Company with near-term hydrocarbon operations focussed on
Morocco and Trinidad is pleased to
announce its unaudited interim results for the six-month period
ended 30 June 2024.
Executive Chairman's 's Report
Dear Shareholder,
On behalf of the Board of
Directors, I hereby present the unaudited
interim results for Predator Oil & Gas
Holdings Plc (the "Group", "Predator" or the "Company")
for the six-month period ended 30 June
2024.
The first six months of 2024 has
seen the Company successfully plan and implement an initial rigless
testing programme using conventional perforating guns for the MOU-1
and MOU-3 wells in the Guercif Licence onshore Morocco.
Planning for a second phase of
rigless testing using the Sandjet perforating option, which does
not use explosives, was completed by the end of the period under
review and the Sandjet testing tools imported into
Morocco.
In 2023 the Company had extended
the Initial Period of the Guercif Petroleum Agreement by a further
9 months to 51 months to 5 February 2024 ("Amendment #3") to allow
for the acceleration of the one well commitment planned for the
First Extension Period to facilitate it being drilled in the
Initial Period whilst a drilling rig was available on site.
Drilling of MOU-4 in 2023 removed the drilling commitment from the
First Extension Period and eliminated the requirement to put up a
new bank guarantee in favour of ONHYM prior to entering the First
Extension Period.
At the end of 2023 a further
extension ("Amendment #4) of the Initial Period by four months to 5
June 2024 was intended to allow for two phases of rigless testing
of MOU-1, MOU-3 and MOU-4 to be completed and the results evaluated
and for a discretionary well, MOU-5, to be drilled. Ratification of
Amendment #4 was announced on 1 May 2024, as a result of which
there was insufficient time to schedule the Sandjet rigless testing
and the drilling of MOU-5 before 5 June 2024, whilst the Company
had the valid Exploration Permits required for Moroccan customs
clearances for the necessary well inventory and chemicals required
to complete the proposed drilling and testing
operations.
An application to enter the First
Extension Period was submitted to ONHYM by 5 June 2024 in
accordance with the earliest permitted date aligned to the
regulatory process with the expectation that the ratification would
be forthcoming as early as possible after 5 June 2024. By the end
of the period under review the regulatory process to grant entry
into the First Extension Period was still progressing.
At all times the Company was
focused on choreographing a complex schedule of regulatory
approvals, the timing of which were outside of the Company's
control; the logistical demands of the supply chain; and the
restricted availability of well and testing services within limited
time slots dictated by the service providers.
Financial prudence was exercised
at all times to reduce premature commitments that may have incurred
unnecessary standby time and costs waiting on final approvals.
Entry into the First Extension
Period will confirm that the Company has satisfied all of its
exploration and financial commitments for the Initial Period and
will have eliminated its contractual drilling commitment for the
First Exploration Period and any requirement to increase its
existing bank guarantee, which remains in place. MOU-5, in the
context of licence commitments, therefore, becomes a discretionary
well which could potentially be counted towards replacing a seismic
commitment later in the timescale of the First Extension
Period.
The First Extension Period will
provide the necessary timescale to potentially progress an
Exploitation Concession and for further phased implementation an
extended of the testing program necessary to fully evaluate the
production potential of the discovered gas to date. Gas samples
whilst drilling MOU-3 from several independent reservoir zones were
analysed in Norway and confirmed to be of a gas quality ideal for a
short-term Compressed Natural Gas development. Inflow of gas into
the wellbore was experienced whilst drilling the shallowest MOU-3
reservoir under-balanced. The Company is therefore confident that
it can find the solutions to overcome the formation damage
experienced by the deeper reservoirs caused by drilling
over-balanced. Potentially significant gas resources were defined
in its Independent Technical Report for the Guercif block published
during the period under review.
The MOU-5 drilling location was
required to be updated to take into account, in accordance with
good ESG practices, the need to avoid surface irrigation structures
and a water well supplying local farming communities and regulatory
requirements relating to the floodplain domain of the Moulouya
river. Medium-term gas development strategies focused on carrying
out the work to demonstrate the gas-to-power potential of the large
MOU-5 structure adjacent to the Mahgreb Gas Pipeline in the event
of a successful drilling programme.
By the end of the period under
review the Moroccan business development strategy had sufficient
technical and commercial information and momentum to facilitate
planning for a future partial divestment option for the CNG project
based on a staged monetisation process. The Company believes that
the natural partner or partners for CNG gas in Guercif would be a
Moroccan entity, given the high demand for gas from the industrial
and potentially the transport sectors. An indigenous entity would
be in a better position to consolidate the CNG business in Morocco
and navigate through the regulatory framework. The Company believes
that its resources should be equally deployed to accelerate early
stage exploration, such as the exciting MOU-5 drilling opportunity,
where the risk versus reward ratio is very high. This aligns
also with the change in post-COVID investor appetite in the public
markets.
The Company has progressed to
establish a low-cost administrative office and operating function
onshore Trinidad.
Opportunities exist in Ministry
licences in Trinidad to initially work over existing wells by
applying different skill sets and new technologies aimed at
enhancing well productivities to better utilise its consolidated
tax losses in its wholly-owned subsidiary T-Rex Trinidad Limited.
Primary emphasis is focussed on legacy wells that have tested oil
in higher pressure reservoirs but remained undeveloped. The
business model is fundamentally different to those pursuing well
workovers for low well deliverabilities in old mature producing
fields with very low reservoir pressures.
The Company published an Independent Technical Report ("ITR") by Scorpion
Geoscience Ltd. for the Cory Moruga block and resource potential of
the Snowcap Discovery. It concluded a Sale and Purchase Agreement
to add the remaining 16.2% interest in the Cory Moruga Licence, the
Ministry of Energy and Energy Industries consent was obtained in
August 2024, for zero cash and share consideration. Furthermore, it
technically re-evaluated the Jacobin-1 well on the Cory Moruga
licence and determined that this tested oil reservoirs in a small
new field, isolated from the Moruga field in an adjoining licence
to the south and the Snowcap-1 field to the
north.
The Company has determined that
there are several "new technology" options for improving well
deliverability, including Sandjet rigless testing, but based on the
Jacobin-1 technical data, which are the most recent in the Cory
Moruga Licence, then the potential for applying the latest wax
treatments may prove to be more successful in achieving the
Company's objectives.
Additional onshore opportunities
have been and continue to be reviewed onshore Trinidad with a view
to determining compatibility with the Company's preferred low cost
development options for increasing production and potential cash
revenues.
Developing the potential for net
revenues from production will provide the Company with a safety net
to finance overheads and for organic investment in future
discretionary work programmes.
The Company continues to progress
its application for a successor authorisation to Licensing Option
16/26 Corrib South offshore Ireland through the GeoScience
Regulation Office ("GSRO") at the Department of the Environment,
Climate and Communications ("DECC"). During the period under review
the Company moved closer to satisfying the last remaining
conditions required by the DECC to recommend an award of the Corrib
South successor authorisation. The Company has a farmin proposal
for Corrib South to conclude immediately upon award of a successor
authorisation. It is not expected that the award of a successor
authorisation could potentially take place until after the next
General Election in Ireland forecast for Q4 2024.
The Energy Transition, "Security
of Energy Supply" and "Cost of living Crisis" were critical issues
in 2023 and whilst these issues have ameliorated somewhat at the
beginning of 2024 they still remain of fundamental importance for
the well-being of the global economy. The "Green Revolution" is
slowing in pace as the timescales for implementation are stretched
out and the investment models become even less robust without
larger government subsidies fuelled by increasingly squeezed
taxpayers. The informed narrative in relation to the "Energy
Crisis" and the dawning of the practical realisation that net zero
CO2 emissions cannot be achieved without a period of transition has
resulted in an increased willingness to invest in the hydrocarbon
sector in 2024 and has increased the number and value of
acquisitions and mergers.
Business development strategy
needs to have flexibility at all times to meet the volatility
created by "Insecurity of Energy Supply" and declining investment
in the sectors by banks and other mainstream financial lenders to
suit "green washing" agendas to appease popular myths and avoid the
pragmatic discussion of an energy transition. The Company believes
that indigenous engagement in the onshore areas where it operates
can provide solutions that ultimately sees energy assets necessary
for securing energy supply security in the hands of local entities
with access to funds that can be used to acquire ownership of
assets that have been de-risked by skilled operators and prepared
for development.
The Company has had no requirement
during the period under review to strengthen its finances through a
Placing. It is fully-funded to carry out its firm work programmes
over the next 12 months whilst retaining enough discretionary cash
as and when required in the event additional well intervention
operations are required, or by re-purposing spending for potential
drilling operations, to enhance its existing well portfolio in
Morocco and Trinidad in a production context. The Company remains
totally debt-free.
The outlook for the remainder of
2024 will see the initial Sandjet rigless testing programme in
Morocco completed and longer term pressure monitoring of the MOU-3
well Ma Sand reservoir instigated. Depending on the data
collected and analysed there may or may not be a requirement for
additional work to demonstrate the production capabilities of the
MOU-3 well. At this point in the future a partial divestment
process of the CNG project may be initiated. Delivering the
MOU-5 high impact drilling programme remains an absolute
priority.
The Cory Moruga Project is a
potential opportunity to generate positive cash flow by the end of
2024 and is therefore also being given a high priority by the
Company.
I should like to thank our
shareholders, our Board of directors and our colleagues in Morocco
and Trinidad for their continued support and commitment. Our
team has frequently found ways to adapt to regulatory and
logistical challenges. A key objective going forward will be to
increase the pace at which the Company assesses potential
additional M&A transactions and potentially seeks new early
stage drilling opportunities. There are some exciting developments
currently being progressed and we are not afraid to use some of our
assets to create near-term value and longer term royalty income to
leverage the advance of high-impact drilling. This reflects the
changing public market landscape and indeed global financial
environment focussed on consolidation and instant returns for
investors.
A strategic task for the Board to
consider going forward, given the Company's drive towards
establishing downstream production and potential future partial
divestment of gas assets suitable for CNG development in Morocco,
will be to re-purpose and diversify its project teams to meet
technical objectives defined by the Board and to ensure that these
teams are effectively coordinated to accelerate project
development. A key deliverable will always remain the
drilling of the MOU-5 well in a timely, safe and cost-effective
manner in line with best industry practices. The MOU-5 well
programme is much simpler to implement and manage compared to the
additional well planning requirements necessary to efficiently
drill the CNG gas reservoirs currently discovered by our 2021 and
2023 drilling campaigns. Now that the "high octane" highly focussed
exploration programme in Morocco has been successfully completed to
de-risk the gas potential of the Guercif Basin in an area that had
never previously been explored, attention is shifting to provide
the technical basis for monetisation.
Operational overview
Morocco
The Phase 1 rigless testing
programme was designed to confirm potential formation damage caused
by heavy drilling muds used whilst drilling and to estimate the
minimum depth of penetration of drilling mud into the potential
reservoir formations.
This information was an important
input for designing the Phase 2 Sandjet rigless testing programme,
including perforating parameters, and for evaluating additional
potential reservoir intervals interpreted by NuTech but where
conventional wireline logs were potentially impacted by deep
invasion of drilling mud into these intervals.
In order to carry out Phase 1
rigless testing, conventional 111/16" perforating guns, being the
only option available at the time to allow Phase 1 rigless testing
to commence before 5 February 2024 and the end of the extension of
the Initial Period of the Guercif Petroleum Agreement facilitated
by Amendment #3, were used.
It was recognised that the
perforating guns were likely to be under-sized but a third party
analysis indicated a maximum 12" penetration into the reservoir
formation versus their interpreted zone of formation damage for the
TGB-2 Sand, for example, in MOU-1 of 8".
Therefore, it was assessed that
the Phase 1 rigless testing programme would at least establish a
minimum extent for formation damage around the wellbore of 8 inches
based on the above third party information. This would assist in
designing more appropriate Sandjet perforating
parameters.
Operations
summary
Phase 1 rigless testing operations
commenced on 10 February 2024 after arrival at the well
site of the explosives required for the
perforating guns and allowing for some adverse weather
conditions which prevented crane work.
All four zones in MOU-1 and MOU-3
to be tested were perforated and operations were completed on 19
February 2024 with the crews and equipment being demobilised.
Operations took 10 days versus the pre-testing forecast of up to 14
days.
Results
For all four zones
tested the under-sized 111/16" perforating guns failed to penetrate
beyond the zone of formation damage caused by the necessity to use
heavy drilling muds whilst drilling.
Gas analysis of isotube gas
samples from MOU-3
Seven gas samples collected in
isotubes in MOU-3 whilst drilling at measured depths of 446, 508,
555, 750, 817, 846 and 1395 metres were analysed by Applied
Petroleum Technology (UK) Ltd. ("APT") in their Oslo laboratory.
Gas composition is in the range 98.04 to 99.57% methane, making it
ideal for a Compressed Natural Gas development with minimum
processing. Isotope analysis indicates the gas is biogenic in
origin.
Planning work continued throughout
the period to scope out the parameters for Phase 2 rigless testing
using Sandjet. Sandjet testing tools were imported into Morocco on
12 June 2024.
The
primary objective of the Sandjet rigless testing programme is to
effectively reach beyond the zone of formation damage caused by the
requirement for over-balanced drilling during drill operations,
which prevented the well from flowing gas.
Remapping of the shallow, 11-metre
thick, higher pressure, gas reservoir between 339 and 350 metres MD
KB in MOU-3 that was not logged resulted in an upgrade of
gas-in-place to gross P50 and P10 estimates of 37.75 and 53.81 BCF
respectively.
Preparation for the drilling of
the MOU-5 structure continued. The well location was moved 277
metres to the northwest of the original location to avoid a surface
irrigation feature and water well that supported local farmers.
This resulted in a slightly deviated well plan to reach the primary
target at the proposed location on 2D seismic line 03-MIL-06. An
adjustment to the well inventory requirements was planned
for.
Seismic modelling with the
creation of seismic inversions identified multiple low impedance
zones in the primary Lower Jurassic target in the MOU-5 structure.
This was interpreted as potentially indicating thick and porous
reservoir development. Reservoir development is forecast to occur
between 800 and 1,000 metres MD KB and the exploration well is not
expected to take longer than 12 to 14 days to drill.
Upgraded gas-in-place based on the
new reservoir potential gave gross P50 and P90 estimates of 8.036
and 14.729 TCF respectively.
Trinidad
Following the Sale and Purchase
Agreement ("SPA") being executed between T-Rex Resources Trinidad
Limited ("T-Rex"), a wholly
owned subsidiary of Predator Oil & Gas Holdings Plc,
and the current third-party Trinidad
partner for the assignment of a 16.2%
interest in the Cory Moruga "E" Block, the
Ministry of Energy and Energy Industries consent was obtained in
August 2024, the Company has continued to focus on
developing a portfolio of well workovers in the Cory Moruga
Licence. Work has included site restoration and maintenance of
access roads and seeking quotes for in-country well services. STOW
certification has been advanced to allow T-Rex Trinidad Limited to
re-establish its status as a field operator.
A new well for workover,
additional to Snowcap-1 and Snowcap-2ST1 has been identified. This
well is suitable for a pilot wax treatment of several oil-bearing
reservoirs within a gross interval 2,500 feet thick.
A review of 3D seismic data
indicates that Jacobin-1 is a separate structural compartment not
drained by the adjacent and producing Moruga West oil field. A
recent fluid level measurement in the well confirms that the
reservoirs are close to virgin reservoir pressure, indicating that
initial well test rates should be close to those for the five
correlatable reservoirs in the adjoining Moruga West field - one of
which, the Herrera #3 Sand, in MW-75 had an initial flow rate of 60
bopd and a recovery of 103,600 barrels of oil.
A target initial production rate
in the guidance range of 50 to 200 bopd is realistic, with the
higher end dependent upon the success of an effective wax
treatment. Utilising the significant tax losses in T-Rex improves
project economics by significantly reducing Petroleum Profit
Tax.
An evaluation of the legacy
production test data for Snowcap-1, inherited with the acquisition
of T-Rex, is in agreement with potential recoverable oil estimates
from the Company's new in-house 3D seismic interpretation and new
reservoir maps. There is a strong expectation that production can
be restored at former levels following remedial downhole
work.
An Independent
Technical Report for Cory Moruga was commissioned and gives gross,
following the acquisition of an additional 16.2% equity interest,
Contingent and Prospective P50 and P10 resources of 14.31 and 21.41
million barrels respectively.
Ireland
No activities were carried out in
respect of Corrib South Licensing Option 16/26.
Company strategy is to focus on
satisfying the financial criteria determined by the GSRO within the
DECC to secure the award of a successor authorisation. Maintaining
the dialogue with the preferred farminee is also an important
consideration in terms of enhancing the ability to satisfy the
financial criteria required by the application process with the
GSRO.
Financial review
The Company reported an
operating loss for the 6 months period is
£978,238 (£2,361,721 for the 6 months
period ended 30 June 2023).
The decrease in operating loss is largely
attributable to absence of drilling activity and a focus on rigless
testing operations in Morocco.
Administrative expenses for the
period to 30 June 2024, which included a £169,044 (£1,444,227 for
the 6 month period ended 30 June 2023) fair value expense to share
options, have been reduced to £1,041,529 (£2,311,893 for the 6
months period ended 30 June 2023), primarily due to the reduction
in share-based payments.
The Company is finishing the
reporting period with cash reserves of £4,352,190 (2023: full year £6,484,034) and
restricted cash of £1,186,155
(2023: full year £1,178,189) in the form of the
security deposit for the Guercif Bank Guarantee in favour of
ONHYM.
£304,474 (before expenses) has
been raised through the exercise of 5,221,203 broker warrants, 2,890,908 of the warrants
exercisable at 5.5 pence per share; 1,780,412 of the warrants
exercisable at 5.7 pence per share; 549,883 of the warrants
exercisable at 8.0 pence per share. 3,000,000 share options have been granted at an exercise
price of £0.125. 4,650,000 share options lapsed.
The Company has no debt nor
outstanding directors' loans.
The Company is well-capitalised
for its committed work programmes over the next 12 months, free of
debt and is in a position to deploy prudent levels of
administrative expenditure focused on enhancing and promoting the
potential of the Company's portfolio.
Summary
During the period under review,
the Company has successfully executed its Phase 1 Moroccan rigless
testing programme to confirm formation damage and support its
NuTech interpretation for the presence of gas reservoirs. This has
allowed the Company to plan the next stage of rigless testing using
Sandjet.
The shallow unlogged higher
pressure gas reservoir in MOU-3 has been remapped with gross P50
and P10 gas-in-place of 37.75 and 53.81 BCF respectively. This is
potentially a separate standalone CNG development
project.
In the same period the location of
the MOU-5 drilling prospect has been adjusted in line with good ESG
practices to protect local farmers by avoiding surface irrigation
schemes and critical water wells. Desktop seismic modelling has
identified several potential high quality reservoir zones within
the primary Jurassic target to be evaluated by the well that has
uplifted gross P50 and P10 gas-in-place estimates to 8.036 and
14.729 TCF. The development concept envisaged for Jurassic gas is
gas-to-power via the Maghreb Gas Pipeline located within 5
kilometres of the MOU-5 structure.
Granting of the entry into the
First Extension Period of the Guercif Petroleum Agreement is well
advanced and, once confirmed, allows for improved reliability for
the scheduling of the MOU-5 drilling programme.
Financial discipline has ensured
that the Moroccan portfolio of prospects is being explored and
developed in a cost-effective manner. This has allowed the Company
to maintain an undiluted interest in its assets thereby providing
the materiality necessary to attract larger entities to assist in
addressing future monetisation of the assets.
Onshore Trinidad we have
consolidated our equity position in the Cory Moruga Licence with
the acquisition for no cash or share consideration of the remaining
16.2% interest, the Ministry of Energy and Energy
Industries consent was obtained in August 2024.
A new potential well workover has
been identified, Jacobin-1, which is located in a separate
structure that has not been depleted by the adjoining and producing
Moruga West field.
Current focus is on developing a
wax treatment appropriate for the wells which are in the current
well workover programme to facilitate improved well deliverability
and reservoir flow assurance. Initial indications are encouraging
that the proposed treatments will achieve the desired
objectives.
In Ireland significant progress
has been made in narrowing the differences between the GSRO
department of the DECC and the Company in respect of the Company
meeting the financial criteria for the award of a successor
authorisation to the Corrib South Licensing Option 16/26. The
Company has received a farmin proposal for Corrib South, in the
context of addressing Ireland's security of energy supply, that can
potentially conclude immediately upon the award of a successor
authorisation.
On behalf of the Board, I would
like to thank our shareholders for their continued support of the
Company. We look forward over the next 12 months to continue making
positive progress towards monetising our discovered gas in Morocco,
potentially through a partial or complete divestment of the CNG
Project and in executing the MOU-5 drilling programme for the
"World Class" multi-TCF MOU-5 structure.
Paul Griffiths
Executive Chairman
Paul Griffiths, Executive Chairman
of Predator, commented:
"We are excited about the exploration potential that the
multi-TCF MOU-5 structure has to deliver a future gas-to-power
project adjacent to the Maghreb Gas Pipeline. There are few such
onshore opportunities around the world adjacent to infrastructure
and a gas market with attractive gas prices supported by a benign
fiscal regime that form a better risk versus reward proposition,
particularly given the low cost of
drilling.
In 2021 this area of the Guercif Basin was unknown as a
potential gas province. We believe that we have sufficiently
advanced the case for Guercif gas for a potential CNG market over
the past 3 years to be optimistic in respect of a future partial or
complete divestment of the CNG Project to accelerate monetisation
subject to a fully funded investment in completing all the elements
of the testing programme required to demonstrate the production
capabilities of the discovered gas in Guercif.
In Trinidad we are working initially towards consolidation of
well workover opportunities and executing the first workover
utilising a novel wax treatment technique. We are aware of other
opportunities to acquire producing assets for no cash consideration
to help consolidate our ability to fully utilise the substantial
tax losses we inherited through the acquisition of
T-Rex.
In Ireland progress has been made with regard to obtaining a
successor authorisation for the Corrib South Licensing Option 16/26
and a farmin proposal justifies our position to play the "waiting
game".
Strategically the Board is balancing the benefits of
progressing through the process towards an Exploitation Concession
in Morocco and a CNG gas development versus early monetisation of
this asset if an attractive opportunity presents itself. We also
consider the positive merits of high impact drilling, such as MOU-5
and similar new venture opportunities that we are evaluating.
Realising value for the Guercif CNG project whilst retaining a
share of future profits based on attaining milestones linked to the
current estimate of contingent and prospective gas resources aligns
with current investor and public market appetite for near-term,
activity-driven investment opportunities.
During the period we have not materially diluted the share
capital to make progress on developing our portfolio of projects.
We remain fully funded for all our firm commitments over the next
12 months.
The next 6 to 12 months will be important in terms of the
direction of travel of the Company as we seek to capitalise on
monetising certain assets; building a production income; and
staying focused on high reward MOU-5 drilling and screening similar
"First Mover" opportunities."
Paul Griffiths
Executive Chairman
24 September 2024
For further information visit
www.predatoroilandgas.com
Follow the Company on X
@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:
Notes to Editors:
Predator is an oil & gas
company with a diversified portfolio of scaled assets including
unique and highly prospective onshore Moroccan gas exposure, with
multiple fully financed upcoming catalysts.
Predator has two high quality,
scalable gas projects in Morocco with fast pace of
commercialisation and blue sky potential. Guercif is a shallow CNG
biogenic gas development with multiple traps and at least 4
separate reservoirs with recently drilled wells due to be flow
tested. The Giant Jurassic Titanosaurus is a shallow thermogenic
gas prospect evaluating 249m of potential gross reservoir thickness
in a trap of 187 km2 for pipeline gas to power, with pipeline
2.5km from wellhead. Moroccan gas prices are high, and
the fiscal terms are some of the best in the world. Predator
also has a diversified portfolio of assets across Ireland and
Trinidad, which is a near-term revenue-generating
project.
Predator has an experienced
management team with particular knowledge in Moroccan sub surface
and operations. The team specialises in incorporating modern,
proven technologies and processes from Canada and the US to
provinces where the conventional technologies did not allow their
hydrocarbon potential to be revealed.
Predator Oil & Gas Holdings
plc is listed on London Stock Exchange's Main Market with a
Standard Listing (symbol: PRD). For further information,
visit www.predatoroilandgas.com
Going Concern
Notwithstanding the reduced
operating loss incurred during the period under review and
following the £304,474 (before expenses)
raised through the exercise of 5,221,203
broker warrants, the Directors have a
reasonable expectation that the Group will not need to raise funds
to continue with its firm operational commitments and to meet all
of its current contractual liabilities over the next 12
months.
The firm major initiatives for
2024 is to execute the Phase 2 Sandjet rigless testing of initially
MOU-3 in Morocco and to perform a workover on the Jacobin-1 well
using a wax treatment and, if successful, there is a fully funded
Going Concern continency to follow up with workovers of the
Snowcap-1 and Snowcap-2ST1 oil discoveries in the Cory Moruga
Licence onshore Trinidad to re-establish oil production. The costs
for the programme of Sandjet rigless testing work in Morocco is
currently based on an Approved Financial Expenditure cost ("AFE")
based on actual quotes for well equipment and well services. The
proposed work programme in Trinidad is currently a budget estimate
based on well workover costs incurred when the Company was
executing its CO2 EOR project in the Inniss-Trinity field and
escalated to account for workovers using a wax treatment to enhance
well productivity at a higher sustainable flow rate.
A negotiation with ONHYM was which
allows for the current USD1,500,000 Bank Guarantee in favour of
ONHYM for the Initial Period of the Guercif Petroleum Agreement to
be rolled over to the First Extension Period. All work commitments
and financial obligations have been satisfied for the Initial
Exploration Period of the Guercif Petroleum Agreement and there is
no increase in the quantum of the existing bank guarantee upon the
granting of entry into the First Extension Period. There are no
firm commitments to be carried out over the next 12 months, however
in the context of the 200km² 3D seismic programme to be acquired
during the First Extension Period of 17 months from award, the
Company may seek to replace the seismic programme with the
discretionary MOU-5 well.
The Company's planning activities
for the remainder of 2024 allow for a number of possible
discretionary projects over the next 12 months as
follows:
Guercif Licence, onshore Morocco
· MOU-5 exploration/appraisal well to test the Jurassic
potential updip from existing MOU-4 well.
Onshore Trinidad
· Acquisition of producing fields
New Ventures
· Licence application North Africa
Implementation of any or all of
these discretionary work programmes will depend upon a number of
factors as follows:
· A
partial or complete divestment of the Guercif CNG Project for back
costs and a share of future gas revenues linked to specific
production milestones.
· The
short-term outlook for establishing positive cash flow onshore
Trinidad following execution of the well workover programme
involving wax treatments to validate an anticipated initial
production rate in the range 50 to 200 bopd.
The MOU-1 well drilled in 2021 and
the MOU-3 and MOU-4 wells drilled in 2023 have all been completed
for two phases of rigless well testing on the basis of the presence
of formation gas and/or NuTech petrophysical wireline log
interpretation. Sandjet rigless testing has always been
the preferred option in order to extend beyond the potential
formation damage resulting from heavy drilling muds required to
safely complete drilling to the pre-drill final depths.
These wells are therefore
potential gas producers subject to the results of the final phase
of rigless well testing (Phase 2 Sandjet), followed by a period of
extended pressure monitoring of the reservoir, and any further well
stimulation required (such as swabbing, nitrogen lift and
acidizing) for well clean up to remove residual drilling mud. There
is sufficient unassigned contingencies in the Going Concern Working
Capital Forecast to facilitate any or all of these well
intervention operations.
Therefore, there are currently no
circumstances at present for the Company to consider an impairment
provision for MOU-1, MOU-3 and MOU-4 accumulated costs.
The MOU-2 well was drilled in
January 2023. The Company announced on 25 January 2023 that the
MOU-2 well had been suspended at 1,260 metres measured depth above
the primary pre-drill reservoir target.
Following the drilling of MOU-4
later in 2023 re-interpretation of the MOU-2 penetrated section
confirmed that MOU-2 had in fact fully penetrated the intended
primary objective but was not capable of being evaluated by
wireline logs.
MOU-2 recovered 3 gas samples from
3 separate sands between 525.5 and 674 metres measured depth with
associated gas peaks. These sands are behind well casing and
therefore were not evaluated by a wireline logging
programme.
The MOU-3 well drilled later in
2023 encountered some shallow over-pressured gas in the equivalent
MOU-2 section which could not be logged or tested after a risk
evaluation as the casing design and cement integrity at the shallow
level posed a risk of uncontrolled gas flow if the over-pressured
section was perforated. This interval could be perforated and
tested in MOU-2.
MOU-2 was safely suspended for
future well re-entry and testing of the shallow gas.
As MOU-2 is still accessible in
the well through a properly engineered re-entry, there is no basis
to consider an impairment provision for accumulated MOU-2 well
costs to date.
The Company has 3 years to
complete a work program that includes the workover of the Snowcap
oil discovery and the restoration of production; the reprocessing
of 3D seismic data; carry out a CO2 EOR feasibility desktop study;
and the drilling of a Snowcap-3 appraisal well.
On this basis the Directors have a
reasonable expectation that in the currently unforeseen worst case
scenario that the Cory Moruga project cannot be funded in the
future after 12 months, then the Company will have an opportunity
to sell T-Rex Trinidad Limited to an existing indigenous operator
in Trinidad on the basis of transactions that are regularly
executed for assets onshore Trinidad, an example being the 2023
sale of the South Erin onshore field, by Caribbean Rex Trinidad Ltd
for a cash consideration of USD1.5 million as announced on 14
February 2023. The Cory Moruga opportunity combined with POGT's CO2
EOR equipment and database may be a potentially attractive
proposition for indigenous Trinidadian companies.
For the Going Concern if there
were to be a projected working capital shortfall within the next 12
months, then the directors will institute a programme of cuts to
directors' and consultant's remuneration and other third-party
corporate costs until such time as the USD1,500,000 Guercif Bank
Guarantee in favour of ONHYM is returned through a sale of the
Guercif asset in a currently unforeseen worst case scenario, or
failing this then the Directors would seek to raise additional
funds in the equity markets, assuming that no farmout of project
equity had occurred by such time as additional working capital was
required.
The Company has no debt and no
outstanding directors' loans.
The Directors do not believe that
either a resurgence of COVID or post-Brexit issues will adversely
influence the Group's business development strategy. Operations in
Morocco can be maintained if that were to occur based on the
operating practices established for the drilling of MOU-1. Brexit
will only create more uncertainty for Ireland's security of gas
supply, thereby enhancing the Company's position in relation to its
application for a successor authorisation for Corrib South
Licensing Option 16/26 for which there is a farmin proposal subject
to the award of a successor authorisation.
The directors, having made careful
enquiry, are of the opinion that the Group has adequate working
capital to execute its operational commitments over the next 12
months given that current spending commitments will prevail. The
Group will therefore continue to adopt the going concern basis in
preparing the Interim Report and Financial Statements.
Predator Oil & Gas Holdings Plc
Report and Condensed
Consolidated Interim Financial Statements
For the 6 months to 30 June
2024
|
Condensed consolidated statement of comprehensive
income
|
|
|
|
|
For the 6 months to 30 June 2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
01.01.2024 to
30.06.2024
|
|
01.01.2023 to 30.06.2023
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
|
Notes
|
£
|
|
£
|
|
|
|
|
|
|
|
Administrative expenses
|
3
|
(872,485)
|
|
(867,666)
|
|
Share based payments
|
3
|
(169,044)
|
|
(1,444,227)
|
|
|
|
|
|
|
|
Operating loss
|
|
(1,041,529)
|
|
(2,311,893)
|
|
|
|
|
|
|
|
Finance income
|
|
37,936
|
|
-
|
|
|
|
|
|
|
|
Finance expense
|
|
-
|
|
(49,590)
|
|
|
|
|
|
|
|
Loss for the period before taxation
|
|
(1,003,593)
|
|
(2,361,483)
|
|
|
|
|
|
|
|
Taxation
|
|
-
|
|
(238)
|
|
|
|
|
|
|
|
Loss for the period after taxation
|
|
(1,003,593)
|
|
(2,361,721)
|
|
|
|
|
|
|
|
Other Comprehensive income
|
|
|
|
|
|
Exchange differences on
translation of foreign subsidiaries
|
|
25,355
|
|
-
|
|
|
|
|
|
|
|
Total comprehensive loss for the period attributable to the
owner of the parent
|
|
(978,238)
|
|
(2,361,721)
|
|
|
|
|
|
|
|
Loss per share basic and diluted (pence)
|
4
|
(0.242)
|
|
(0.592)
|
|
|
Europe
|
|
Caribbean
|
|
Africa
|
|
Corporate
|
|
For the 6 months to 30 June 2023
(unaudited)
|
£
|
|
£
|
|
£
|
|
£
|
|
|
|
|
|
|
|
|
|
|
Gross Loss
|
|
|
|
|
|
|
|
|
Administrative and overhead
expenses
|
(45,782)
|
|
(5,059)
|
|
171,610
|
|
(2,431,444)
|
|
Share option and warrant
expense
|
-
|
|
-
|
|
-
|
|
(1,218)
|
|
Finance Income
|
-
|
|
-
|
|
-
|
|
(49,590)
|
|
Taxation
|
-
|
|
-
|
|
(238)
|
|
-
|
|
Loss for the period from continuing
operations
|
(45,782)
|
|
(5,059)
|
|
171,372
|
|
(2,482,252)
|
|
|
|
|
|
|
|
|
|
|
Total reportable segment
intangible assets
|
-
|
|
-
|
|
11,440,803
|
|
-
|
|
Total reportable segment
non-current assets
|
-
|
|
-
|
|
-
|
|
2,230
|
|
Total reportable segment current
assets
|
-
|
|
630,577
|
|
1,335,744
|
|
2,670,689
|
|
Total reportable segment assets
|
-
|
|
630,577
|
|
12,776,547
|
|
2,672,919
|
|
|
|
|
|
|
|
|
|
|
Total reportable segment liabilities
|
(10,500)
|
|
(4,574)
|
|
(1,851,249)
|
|
(2,101,546)
|
There are no non-current assets
held in the Group's country of domicile, being Jersey, Channel
Islands (2023: £nil).
|
|
30.06.2024
|
30.06.2023
|
|
|
(Unaudited)
|
(Unaudited)
|
|
|
£
|
£
|
3. Administrative expenses
|
Technical
Consultancy fees (i)
|
101,432
|
42,657
|
|
Listing
costs
|
56,101
|
71,733
|
|
Project
Allosaurus
|
-
|
117,000
|
|
Broker
fees
|
30,000
|
12,500
|
|
Directors fees
|
196,835
|
185,004
|
|
Share
based payments - options
|
169,044
|
1,444,227
|
|
Administration fees
|
85,285
|
77,602
|
|
Bank
charges
|
28,498
|
27,405
|
|
Legal and
professional fees
|
129,217
|
91,077
|
|
Travel
expenses
|
45,241
|
22,583
|
|
Computer/system costs/IT support
|
480
|
6,886
|
|
Insurance
|
30,800
|
46,545
|
|
Sundry
expenses
|
3,959
|
4,968
|
|
Annual
return fee
|
1,320
|
1,350
|
|
Depreciation
|
118
|
1,218
|
|
Website
costs
|
5,277
|
1,153
|
|
Foreign
exchange
|
(52,559)
|
127,385
|
|
Audit
fee
|
55,455
|
30,600
|
|
Cory
Moruga operating expenses
|
87,491
|
-
|
|
WHT
Payable
|
67,535
|
-
|
|
|
1,041,529
|
2,311,893
|
|
|
|
|
(i) During
the period ended 30 June 2024, all Executive Directors' technical
consultancy fees for Predator Gas Ventures Limited were capitalised
accordingly.
|
4 Loss per share
|
30.06.2024
(unaudited)
|
30.06.2023
(unaudited)
|
|
Weighted
average number of shares
|
403,884,950
|
398,787,674
|
|
Loss
attributable to ordinary equity holders of the company
|
(978,238)
|
(2,361,721)
|
|
Total
basic and diluted loss per share attributable to the ordinary
equity
holders
(pence)
|
(0.242)
|
(0.592)
|
Diluted loss per Ordinary share
equals basic loss per ordinary share as, due to the losses incurred
in 2024 and 2023, there is no dilutive effect from the subsisting
share options.
|
5
Intangible asset
|
|
|
Project
Guercif
|
|
Cory
Moruga
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
Gross carrying amount
|
|
|
|
|
|
|
|
|
Balance at 1 January
2023
|
|
|
5,275,720
|
|
-
|
|
5,275,720
|
|
Additions
|
|
|
7,060,272
|
|
-
|
|
7,060,272
|
|
Acquired through Business
Combinations
|
|
|
-
|
|
5,251,937
|
|
5,251,937
|
|
|
|
|
|
|
|
|
|
|
Balance at 31 December 2023
|
|
|
12,335,992
|
|
5,251,937
|
|
17,587,929
|
|
Prior year adjustment to reflect
the fair value of assets acquired on acquisition of T-Rex Resources
(Trinidad) Limited
|
|
-
|
|
(775,223)
|
|
(775,223)
|
|
Restated Balance as at 1 January 2024
|
|
|
12,335,992
|
|
4,476,714
|
|
16,812,706
|
|
Additions
|
|
|
1,392,570
|
|
20,466
|
|
1,413,036
|
|
|
|
|
|
|
|
|
|
Balance at 30 June 2024
|
|
|
13,728,562
|
|
4,497,180
|
|
18,225,742
|
|
|
|
|
|
|
|
|
|
|
Depreciation and impairment
|
|
|
|
|
|
|
|
|
Balance at 1 January
2024
|
|
|
-
|
|
-
|
|
-
|
|
Depreciation
|
|
|
-
|
|
-
|
|
-
|
|
Balance at 30 June 2024
|
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Carrying amount 31 December 2023 (restated)
|
|
|
12,335,992
|
|
4,476,714
|
|
16,812,706
|
|
Carrying amount 30 June 2024
|
|
|
13,728,562
|
|
4,497,180
|
|
18,225,742
|
All costs relating to Project
Guercif have been capitalised and will be depreciated once gas
discovery is declared commercial and a Plan of Development has been
approved.
The Directors have undertaken an
assessment of the following areas and circumstances that could
indicate the existence of impairment:
· The
Group's right to explore in an area has expired, or will expire in
the near future without renewal;
· No
further exploration or evaluation is planned or budgeted
for;
· A
decision has been taken by the Board to discontinue exploration and
evaluation in an area due to the absence of a commercial
level of reserves; or
· Sufficient data exists to indicate that the book value will
not be fully recovered from future development and production.
An assessment of the fair value
assets and liabilities of T-Rex acquired in November 2023 have been
undertaken. The board has determined that these assets taken as an
integrated set of activities are capable of being managed and
conducted for the purpose of providing a return, and therefore
constitute a business. Accordingly, the transaction has been
accounted for in accordance with IFRS 3 'Business Combinations'
which requires the assets acquired and liabilities assumed to be
recognised on the acquisition date at their fair value.
Parex Resources, the previous
holder of the Cory Moruga licence made the original Snowcap-1 oil
discovery and acquired 3D seismic data over the licence from
British Gas. The Herrera #8 sand ("H#8") tested in Snowcap-1 is
judged on a fair and reasonable basis to represent a known
accumulation with other stacked sands (H#1-H#7) requiring
additional appraisal and testing to confirm the extent of
producible hydrocarbons. Applying Sandjet perforating technology
may provide an opportunity to add significant future project value
with substantial efficiency savings compared with conventional
perforation and testing methods.
The fair value of the assets
acquired have been based on resources as reported by Scorpion
Geoscience Limited in the Cory Moruga Independent Technical Report
including the resource potential of the Snowcap-1 discovery, which
gives 2C and 3C Contingent Resources of 1.40 and 1.84 million
barrels respectively and 2C and 3C Prospective Resources of 12.91
and 19.57 million barrels respectively net to the T-Rex. The
after-tax undiscounted net-back is forecast to be US$19.61 per
barrel (using a flat WTI oil spot price of US$76 per barrel.
Project economics support a valuation of NPV10% of US$85
million. Management considers a 10% discount factor as an
appropriate measure of the risk profile of the project. Simulations
at higher discount factors have validated the viability of the
assets.
The Group has recognised
£4,497,180 as an intangible asset on consolidation of TRex's
balance sheet with POGT in respect of the valuation of Cory Moruga.
This compares to an intangible asset of £5,251,937 recognised in
the Group's consolidated balance sheet at 31 December 2023. The
difference is accounted for by showing a US$1million part payment
for the acquisition of the Cory Moruga licence as a loan due by
TRex to POGT its parent company and not a cost of acquiring TRex.
Accordingly, a prior adjustment of £775,223 has been
recognised.
In addition, following the
completion of the annual audit of TRex, a review of the assets and
liabilities acquired was completed. This resulted in an increase in
trade and other receivables of £19,142, with a corresponding
decrease in liabilities.
The amounts recognised in respect
of the identifiable assets acquired and liabilities assumed
are:
|
|
|
|
|
|
31.12.23
(audited)
|
|
31.12.23
(audited)
|
|
Consideration
|
|
|
|
|
US$
|
|
£
|
|
Transfer to CEG
|
|
|
|
|
1,000,000
|
|
810,066
|
|
Transfer to MEEI
|
|
|
|
|
1,000,000
|
|
810,066
|
|
FRAM loan unwind
|
|
|
|
|
762,216
|
|
643,905
|
|
Total
|
|
|
|
|
2,762,216
|
|
2,264,037
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31.12.23
(audited)
|
|
31.12.23
(restated)
|
|
T-Rex Assets and Liabilities
|
|
|
|
£
|
|
£
|
|
Trade and other
receivables
|
|
|
|
|
584,130
|
|
603,272
|
|
Intangible asset
|
|
|
|
|
5,251,939
|
|
4,476,714
|
|
Liabilities (TTD
24,950,313)
|
|
|
|
|
(3,572,032)
|
|
(2,815,948)
|
|
Total
|
|
|
|
|
2,264,037
|
|
2,264,037
|
|
|
|
|
|
|
30.06.2024
|
|
31.12.2023
|
|
|
|
|
|
|
(unaudited)
|
|
(audited)
|
|
|
|
|
|
|
|
|
(restated)
|
|
6
Trade and other receivables
|
|
|
|
|
£
|
|
£
|
|
Current
|
|
|
|
|
|
|
|
|
Security deposit (US$1,500,000)
(i)
|
|
|
|
|
1,186,155
|
|
1,178,189
|
|
Prepayments and other
receivables
|
|
|
|
|
949,839
|
|
693,771
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,135,994
|
|
1,871,960
|
(i) A security deposit of
US$1,500,000 (2023: US$1,500,000) is held by Barclays Bank in
respect of a guarantee provided to Office National des
Hydrocarbures et des Mines (ONHYM) as a condition of being granted
the Guercif exploration licence. These funds are refundable on the
completion of the Minimum Work Programme set out in the terms of
the Guercif Petroleum Agreement and Association Contract. Subject
to ratification by a Joint Ministerial Order, the Bank Guarantee is
being rolled over into the First Extension Period of the Guercif
Licence.
|
7 Cash and cash equivalents
|
30.06.2024
(unaudited)
£
|
31.12.2023
(audited)
£
|
|
Barclays
Bank Plc
|
4,332,972
|
6,417,094
|
|
Société
Générale
|
16,313
|
66,940
|
|
Scotiabank
|
2,905
|
-
|
|
|
4,352,190
|
6,484,034
|
|
|
Number of
|
|
|
8 Share capital
|
shares
|
Nominal value
|
|
Issued and fully
paid
|
|
|
|
Opening Balance
|
565,161,662
|
33,067,028
|
|
26 June 2024
Warrants
exercised
|
5,221,203
|
304,476
|
|
|
570,382,865
|
33,371,504
|
|
|
|
|
|
|
30.06.2024
|
|
31.12.2023
|
|
|
|
|
|
|
(unaudited)
|
|
(audited)
|
|
|
|
|
|
|
|
|
(restated)
|
|
9
Trade and other payables
|
|
|
|
|
£
|
|
£
|
|
Current
|
|
|
|
|
|
|
|
|
Trade payables (i)
|
|
|
|
|
1,365,985
|
|
1,448,406
|
|
Accruals (ii)
|
|
|
|
|
2,773,047
|
|
2,655,795
|
|
Provisions (iii)
|
|
|
|
|
171,875
|
|
156,880
|
|
|
|
|
|
|
4,310,907
|
|
4,261,081
|
(i) Trade
payables as at 30 June 2024 includes an amount of GBP 557,939 in
respect of Moroccan withholding tax, an amount of GBP 507,598 in
respect of compensation payments due to the Executive Directors and
an amount of GBP 250,000 in respect of performance bonuses due to
the Executive Directors.
(ii)
Accruals as at 30 June 2024 includes an amount of
GBP 2,659,305 (TTD22.3 million) in relation to amounts payable to
the Trinidadian Ministry of Energy and Energy Industries in respect
of past dues on the Cory Moruga licence.
(iii) An amount of US$ 1 million
paid to the Trinidadian Ministry of Energy and Energy Industries on
the acquisition of T-Rex Resources (Trinidad) Limited has been
reclassified as a reduction of the provision for past dues on the
Cory Moruga Licence. The amount had previously been recognised as a
cost of the acquisition (see note 5).
|
10 Other reserves
|
|
|
Warrants issuance cost
reserve
|
No of warrants
|
30.06.2024
(unaudited)
£
|
31.12.2023
(audited)
£
|
|
Balance
brought forward
|
18,570,179
|
(1,711,756)
|
(583,825)
|
|
Issue of
warrants
|
-
|
-
|
(1,219,130)
|
|
Exercised
warrants at fair value
|
(5,221,203)
|
337,715
|
44,142
|
|
Cancelled
and/or expired warrants
|
-
|
-
|
47,057
|
|
Balance carried forward
|
13,348,976
|
(1,374,041)
|
(1,711,756)
|
|
Share based payments
reserve
|
No of share options
|
30.06.2024
(unaudited)
£
|
31.12.2023
(audited)
|
|
Balance
brought forward
|
48,360,972
|
2,844,770
|
1,379,964
|
|
Issue of
warrants
|
-
|
-
|
1,219,130
|
|
Cancelled
share options
|
(4,650,000)
|
(213,306)
|
-
|
|
Issue of
share options
|
3,000,000
|
21,096
|
-
|
|
share
based payment charge
|
-
|
147,948
|
1,540,481
|
|
Share
options exercised
|
-
|
-
|
(1,250,663)
|
|
Warrants
exercised
|
-
|
(337,715)
|
(44,142)
|
|
Balance carried forward
|
46,710,972
|
2,462,793
|
2,844,770
|
11. Share based payments
Share options
The group operates a share option
plan for directors.
Paul Griffiths
Share options issued during the periods
There were no share options issued
during the period.
Share options exercised during the period
No share options were exercised
during the period
Share options held at the period end
· Share
options agreement dated 9 November 2022 - 4,171,881 share options
at an exercise price of 10.0p.
· Share
options agreement dated 12 May 2023 -3,328,119 share options at an
exercise price of 10.0p.
· Share
options agreement dated 12 May 2023 - 7,855,486 share options at an
exercise price of 8.0p.
Lonny Baumgardner
Share options issued during the period:
There were no share options issued
during the period.
Share options exercised during the
period:
No share options were exercised
during the period.
Share options held as at period
end:
· Share
options agreement dated 9 November 2022 - 7,427,042 share options
at an exercise price of 10.0p.
· Share
options agreement dated 12 May 2023 - 72,958 share options at an
exercise price of 10.0p.
· Share
options agreement dated 12 May 2023 - 7,855,486 share options at an
exercise price of 8.0p.
Alistair Jury
Share options issued during the period:
There were no share options issued
during the period.
Share options exercised during the
period:
No share options were exercised
during the period.
Share options held as at period
end:
· Share
options agreement dated 5 July 2022 - 2,000,000 share options at an
exercise price of 8.125p.
· Share
options agreement dated 11 October 2023 - 3,000,00 share options at
an exercise price of 12.5p.
Carl Kindinger
Share options issued during the period:
There were no share options issued
during the period.
Share options exercised during the
period:
No share options were exercised
during the period.
Share options held as at period
end:
· Share
options agreement dated 9 November 2022 - 2,000,000 share options
at an exercise price of 7.75p.
· Share
options agreement dated 11 October 2023 - 3,000,000 share options
at an exercise price of 12.5p.
Moyra Scott
Share options issued during the period:
There were no share options issued
during the period.
Share options exercised during the
period:
No share options were exercised
during the period.
Share options held as at period
end:
· Share
options agreement dated 29 March 2023 - 3,000,000 share options at
an exercise price of 10.0p.
Louis Castro
Share options issued during the period:
There were no share options issued
during the period.
Share options lapsed during the
period:
On 18 April 2024, 1,000,000 shares
options issued to Louis Castro lapsed.
Share options held as at period
end:
· No
share options held at end of period.
Steve Staley
Share options issued during the period:
There were no share options issued
during the period.
Share options lapsed during the
period:
On 18 April 2024, 1,650,000 shares
options issued to Steve Staley lapsed.
Share options held as at period
end:
· No
share options held at end of period.
Tom Evans
Share options issued during the period:
There were no share options issued
during the period.
Share options lapsed during the
period:
On 18 April 2024, 2,000,000 shares
options issued to Tom Evans lapsed.
Share options held as at period
end:
· No
share options held at end of period.
Geoffrey Leid
Share options issued during the period:
On the 18 April 2024, the Company
issued 3,000,000 share options at an exercise price of 12.5p.
1,000,000 share options vested immediately, and the remaining
2,000,000 share options will vest after 6 months or upon production
from the Cory Moruga Exploration and Production Licence reaching
200 barrels of oil per day, whichever occurs first.
Share options exercised during
the period:
No share options were exercised
during the period.
Share options held as at period
end:
Share options agreement dated 18
April 2024 - 3,000,000 share options at an exercise price of
12.5p.
|
The Black
Scholes model has been used to fair value the options, the inputs
into the model were as follows:
|
|
|
Grant
date
|
18/04/2024
|
|
Share
price
|
£0.0975
|
|
Exercise
price
|
£0.1250
|
|
Term
|
7 years
|
|
Expected
volatility
|
123.45%
|
|
Expected
dividend yield
|
0%
|
|
Risk free
rate
|
4.34%
|
|
Fair
value per option
|
£0.0258
|
|
Total
fair value of the options
|
£51,600
|
|
Warrants
During
the period, the Company has not issued any warrants.
|
|
|
During
the period ended 30 June 2024, the total number of warrants
exercised are:
|
|
1. On 23 November 2022,
1,099,768 warrants were issued to Novum Securities Limited
exercisable at 8.0p with an initial and current expiry date of 23
November 2025. On 25 June 2024, 549,833 warrants were exercised,
with the outstanding exercisable warrants being 549,885.
2. On 12 May 2023,
1,780,412 warrants were issued to Novum Securities Limited
exercisable at 5.7p with an initial and current expiry date of 12
May 2026. On 25 June 2024, 1,780,412 warrants were exercised, with
no outstanding exercisable warrants.
3. On 23 August 2022,
3,600,000 warrants were issued to Novum Securities Limited
exercisable at 5.5p with an initial and current expiry date of 23
August 2025. 1,800,000 warrants were exercised during 2022, on 25
June 2024 the remaining 1,800,000 warrants were exercised, with no
outstanding exercisable warrants.
4. On 17 March 2023,
2,181,818 warrants were issued to Novum Securities Limited
exercisable at 5.5p with an initial and current expiry date of 17
March 2026. On 25 June 2024, 1,090,908 warrants were exercised, with the outstanding exercisable
warrants being 1,090,910.
|
12 Investment in subsidiaries
|
Principal
activity
|
|
Country of
|
|
Ownership
|
|
|
|
|
|
|
incorporation
|
|
interest
|
|
Predator Oil and Gas Ventures
Limited
|
Licence options in offshore
Ireland
|
|
Jersey
|
|
100%
|
|
|
|
|
|
|
|
Predator Oil and Gas Trinidad
Limited
|
Profit rights for production
revenues from a CO2 enhanced oil recovery project
|
|
Jersey
|
|
100%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
T-Rex Resources (Trinidad) Limited
("T-Rex")
|
Exploration licence onshore
Trinidad
|
|
Trinidad
|
|
100%
|
|
|
|
|
|
|
|
Predator Gas Ventures
Limited
|
Exploration licence onshore
Morocco
|
|
Jersey
|
|
100%
|
|
|
|
|
|
|
|
Mag Mell Energy Ireland
Ltd
|
Licence application to import
liquified natural gas
|
|
Jersey
|
|
100%
|
13 Financial instruments
The Group's financial instruments
comprise cash and items arising directly from its operations such
as trade receivables and trade payables.
|
Categorisation of financial
instruments
|
30.06.2024
(unaudited)
£
|
|
Financial assets measured at
amortised cost
|
|
|
Trade and
other receivables
|
2,135,994
|
|
Financial assets that are
debt instruments measured at amortised cost:
Cash and
cash equivalents
|
4,352,190
|
|
|
6,488,185
|
|
Financial liabilities
measured at amortised cost:
Trade and
other payables (excluding short term loans)
|
(4,310,906)
|
|
|
(4,310,906)
|
|
14 Related party
transactions
|
|
|
Transactions with key
management personnel
|
|
Key management of the Group are
the executive members of the Company board of directors. Key
management personnel remuneration includes the following
expenses:
|
|
30.06.2024
(unaudited)
£
|
30.06.2023
(unaudited)
£
|
31.12.2023
(audited)
£
|
|
Short-term
employee benefits
|
|
|
|
|
Executive
and non-executive directors
|
298,267
|
360,104
|
460,520
|
|
Share
option scheme
|
-
|
1,444,228
|
1,540,481
|
|
|
298,267
|
1,804,332
|
2,001,001
|
|
The
average number of personnel (including directors) during
the
|
|
|
|
|
period
was:
Management - (Executive directors)
|
2
|
2
|
2
|
|
Non-management - (Non-executive directors)
|
2
|
2
|
2
|
|
|
4
|
4
|
4
|
Four Directors at the end of the
period have share options receivable under long term incentive
schemes. The highest paid Director received an amount of
£120,084 (2023: £173,152). The Group does not have employees. All
personnel are engaged as service providers.
During the period under review, the
Company incurred costs of EUR31,500 (2023: EUR 21,000) relating to
capitalised operations and logistic costs in Morocco, of which nil
(2023: Nil) remains outstanding as at 30 June 2024. These costs are
payable to Earthware Energy Inc a company owned by/related to
Karima Absa, the wife of Lonny Baumgardner.
No share options were issued during
the period.
15
Subsequent Events
The Group acquired an additional
16.2% equity interest in the Cory Moruga licence from the joint
venture partner, Touchstone. Pursuant to this
acquisition T-Rex Resources (Trinidad) Limited (Trex) will
assume 100% of the debt due to Ministry of Energy and Energy
Industries (MEEI). On 30 June 2024 Touchstone owed TRex
TT$4,869,167 or GBP 581,054 in respect of the licence due to MEEI
for Cory Moruga. These dues to be paid from an Overriding
Royalty Interest (ORRI) in favour of MEEI which would not arise if
there were no production from a field development on the Cory
Moruga licence.
On 29 July 2024, the Listing Rules
were replaced by the UK Listing Rules ("UKLR") under which the
existing Standard Listing category was replaced by the Equity
Shares (transition) category under Chapter 22 of the UKLR.
Consequently, with effect from that date the Company is admitted to
Equity Shares (transition) category of the Official List under
Chapter 22 of the UKLR and to trading on the London Stock
Exchange's Main Market for listed securities"
On the 7 August 2024 the Company
announced a rigless testing update and customs clearances on the 12
June and 2 August 2024 for the import of the Sandjet testing tools
and the Baker Hughes logging and coiled tubing units
respectively.
On the 8 August 2024 the Company
gave an update on preparations for the drilling of the high impact
well MOU-5. Based on an updated Independent Technical Report,
taking into account seismic modelling of the target Jurassic
reservoir interval, gave gross P50 and P90 in-place gas of 8.036
and 14.729 TCF respectively.
Based on the evidence of the
presence of helium in the MOU-3 analysed gas sample from the
Moulouya Fan, the helium potential of the MOU-5 structure and
surrounding area was identified for the first time for further
evaluation and follow up through the drilling of MOU-5.
The granting of entry into the
First Extension Period of the Guercif Petroleum Agreement was
confirmed.
The Company's Managing Director,
Mr. Lonny Baumgardner, resigned from the Board of Directors on 11
September 2024. His services contract was also terminated on
11 September 2024.
Zenith Energy (Aberdeen) Limited
has been appointed as an additional well engineering services
provider.
A Memorandum of Understanding with
EARTHTT for access to patented chemical wax treatment technology
has been concluded.
16
Ultimate controlling
party
In the opinion of the Directors
there is no ultimate controlling party as no one individual is
deemed to satisfy this definition.
