FOR
IMMEDIATE RELEASE
26 January
2024
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")
Corporate
update
Highlights
·
Independent
Technical Report gives unrisked P50 and P10 Contingent recoverable
gas resources of 109.28 and 234.42 BCF respectively net to
PRD.
·
Unrisked P50 and
P10 Prospective recoverable gas resources of 139.67 and 312.16 BCF
respectively net to PRD.
·
Independent
Technical Report for scoping potential CNG development gives NPV
@10% 128.08 and undiscounted positive cash flow of US$207.504
million net PRD's economic interest with an IRR of
138%.
·
Input assumptions
20 mm cfgpd production profile maintained for 6 years to recover
32.85 BCF net PRD at a flat gas price of
US$12/mcf.
·
Fully funded for
all 2024 firm commitments
Predator Oil & Gas Holdings Plc
(LSE: PRD), the Jersey based Oil and Gas Company with near-term
operations focussed on Morocco and Trinidad, is pleased to provide
a corporate update.
Further to
the announcement of 12 January 2024 in respect of an operations
update, the Company is publishing today an Independent Technical
Report ("ITR") by Scorpion Geoscience Ltd. for the Guercif block
and resource potential of the Moulouya Sub-Area following an
evaluation of the 2023 drilling programme results.
https://wp-predatoroilandgas-2020.s3.eu-west-2.amazonaws.com/media/2024/01/Guercif_ITR_20240124.pdf
Gas
resources
Table 1 Unrisked Contingent and
Prospective Gas-in-Place and (Recoverable Resources) BCF (billion
cubic feet of gas) net to PRD.
Reservoir
|
P90
|
P50
|
P10
|
Category
|
MOU-1 and MOU-3
Ma sands
|
11.11
(7.15)
|
25.38
(16.38)
|
47.28
(30.9)
|
Contingent
|
MOU-1
TGB 2 sands
|
5.49
(2.19)
|
21.86
(13.12)
|
66.72
(53.38)
|
Contingent
|
MOU-3 and MOU-4
Moulouya Fan interval
|
54.49
(34.86)
|
114.29
(73.56)
|
211,31
(138.02)
|
Contingent
|
MOU-1, MOU-3 and MOU-4
TGB-6, TGB-4, shallow sands MOU-4,
volcanic unit¹
|
N/A
|
N/A
|
N/A
|
Subject to rigless
testing
|
MOU-3 and MOU-3NW
A sand interval
|
4.41
(2.71)
|
10.06
(6.21)
|
19.60
(12.12)
|
Contingent
|
MOU-5 (MOU-4 NE)
Jurassic carbonate
reservoir
|
127.44
(70.27)
|
320.15
(139.67)
|
682.93
(312.16)
|
Prospective
|
¹ Second phase of rigless testing using Sandjet
will evaluate these intervals to determine
whether the NuTech petrophysical interpretation
indicating the presence of gas can be
verified for some or all of these
intervals.
As previously announced the
Company's proposed 2024 work programme of rigless well testing and
discretionary appraisal and exploration drilling, subject to
regulatory consent and approvals, is designed to incrementally add
potential resources for scalable CNG development funded
expeditiously through managing organic cash flow.
Today's announcement of the expected
commencement of rigless testing on or about 29 January 2024 is the
first step in the process focussed on evaluating specific sands
within the broader Ma and TGB 2 intervals in MOU-1 and MOU-3.
For guidance only gas flow rates in the range 1 to 3 mm cfgpd from
each of these wells in a success case would potentially be
sufficient to support a future CNG pilot development
option.
Depending on the rigless testing
results, in particular whether or not there is any evidence for any
rate of reservoir pressure depletion with time, well test data may
be capable of being extrapolated to support the 2C and, potentially
3C, gas volumetrics shown in Table 1 for the Ma and TGB sand
intervals. Test results and the composition of the test products
may also help to calibrate other sands within these intervals that
NuTech petrophysical logs suggest may be gas-bearing.
In the event the rigless test
results are in alignment with the possible range of 2C and 3C
recoverable resources, then a scoping CNG gas profile of 20 mm
cf/day maintained for 6 years to recover a gross volume of 43.8 BCF
may be achievable from 4 production wells (2 infill wells to be
drilled at an appropriate time after production has been
established and the rate of reservoir pressure depletion has been
measured). Additional infill drilling may be required depending on
well deliverability performances over time.
Based on this profile the ITR gives,
using a flat industrial gas market price of US$12 per mcf, an
unrisked scoping NPV@10% of US$108 million and an IRR of 138% with
undiscounted positive cash revenues of US$ 207.504 million for the
net Predator economic interest, equivalent to an unrisked and
undiscounted US$6.345 million per BCF of CNG production.
Timing of "First Gas" depends on a
number of third party factors including government and
environmental consents and approvals and the long lead time for the
purchase or leasing of CNG trailers and gas compressors. Once the
rigless testing results become available the CNG services and
equipment market can be evaluated with greater certainty in respect
of delivery times.
The ITR summarises, amongst other
matters: the geological risks; the impact of potential well
formation damage; and the possible origins of the gas sampled to
date pre-testing. It is intended that as far as is possible these
risks will be addressed by the first phase of rigless
testing.
These risks are enhanced in the case
of several zones shown in Table 1 identified in MOU-1, MOU-3 and
MOU-4 for rigless testing using Sandjet. Prudently therefore the
Company does not assign any potential resources to these intervals
at this time. Any gas resources confirmed within any of these
intervals would be available for CNG development upscaling for very
low additional development costs.
The ITR recognises additional
prospectivity for gas in the Jurassic (both carbonate and clastic
reservoirs) in structural and stratigraphic traps which include the
up to 177 km² feature the edge of which was tested by MOU-4. If
successfully proved up by future drilling it would require, once
the demand in the industrial market had been satisfied, a
gas-to-power marketing strategy to underpin a development case
and/or an export market through the Maghreb gas pipeline, located
just 9 kilometres from the area of current geological focus for the
Company.
The Company is fully funded to
complete its entire planned rigless testing programmes at
Guercif.
IRELAND
The Company has received since its
last operations update a communication from the GeoScience
Regulation Office ("GSRO") at the Department of the Environment,
Climate and Communications informing the Company that consideration
of its application for a successor authorisation to Licensing
Option 16/26 Corrib South is hoped to be
concluded during Q1 2024 and that the GSRO would be writing to the
Company shortly in relation to this matter.
Paul Griffiths, Executive Chairman
of Predator, commented:
"We are pleased to be finally making progress
on the rigless testing programme. The initial phase is important to
us for designing and implementing the Sandjet rigless testing
programme which will follow on after the Sandjet operational
planning work is completed.
Sandjet rigless testing will be focussing on the Moulouya Fan
and multiple zones at other levels which NuTech petrophysical logs
suggest may contain hydrocarbons but which require validation by
other means.
Cory Moruga planning work is being progressed in Trinidad this
week to put in place a small operations teams to implement the
proposed workover operations after planning is complete and
environmental approvals have been received.
Ireland has taken us by surprise. We remain cautiously
optimistic that we potentially have a partner for Corrib South in
the event a successor authorisation is awarded. There is no
guarantee that the conclusion of the GSRO DECC process would
necessarily result in a positive outcome for the Company. Corrib
South is a quality exploration asset adjacent to the Corrib gas
field infrastructure and was formerly held by Shell under a Reserve
Licence authorisation."
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
Paul
Griffiths
Executive Chairman
Lonny Baumgardner
Managing Director
|
Tel: +44 (0) 1534 834 600
Info@predatoroilandgas.com
|
|
|
Novum Securities Limited
David Coffman / Jon
Belliss
Oak
Securities
Jerry
Keen
Fox
Davies Capital
Daniel Fox-Davies/James
Hehn
|
Tel: +44 (0)207 399 9425
Tel: +44 (0)203 973 3678
Jerry.keen@oak-securities.com
Tel: +44 (0)203 884 9388
|
|
|
Flagstaff Strategic and Investor
Communications
Tim Thompson
Mark Edwards
Fergus Mellon
|
Tel: +44 (0)207 129 1474
predator@flagstaffcomms.com
|
Notes to Editors:
Predator is operator of the Guercif
Petroleum Agreement onshore Morocco which is prospective for
Tertiary and Jurassic gas. The current focus of the
exploration and appraisal drilling programme is located less than
10 kilometres from the Maghreb gas pipeline. The MOU-1 well
drilled in 2021 and the MOU-3 and MOU-4 wells drilled in 2023 have
been completed for rigless testing in early 2024. Near-term focus
is on supplying compressed natural gas ("CNG") to the Moroccan
industrial market. A Collaboration Agreement for potential CNG gas
sales of up to 50 mm cfgpd has been executed with Afriquia Gaz.
Further drilling activity is anticipated in 2024 to further
evaluate the MOU-4 Jurassic prospect.
Predator is seeking in the medium
term to apply CO2 EOR techniques onshore Trinidad which have the
advantage of sequestrating anthropogenic carbon dioxide. The
acquisition of T-Rex Resources (Trinidad) Ltd. ("T-Rex") is a first
step to realising this objective. T-Rex holds the Cory Moruga
Production Licence. Cory Moruga is a largely undeveloped
near-virgin oil field of similar potential size to the nearby
Moruga West and Inniss-Trinity mature oil fields. The Cory Moruga
Production Licence is a potentially significant asset for the
Company with the capability of generating positive operating
profits in the near-term. Capital required for staged field
development can be implemented potentially utilising operating
profits generated from an increasing level of gross production
revenues.
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. The applications for successor authorisations
remain "under consideration" by the DECC.
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.
Further progress for the Mag Mell
FSRUP will be dependent on government policy in relation to
security of energy supply. A generalised FSRUP concept has now been
recognised by the government as an option for security of energy
supply.
The Company has a small but highly
experienced management team with a proven track record in
successfully executing drilling operations in the oil and gas
sector and in acquiring assets where there is a potential to
generate multiple returns for relatively low and manageable levels
of investment.