TIDMPRD
RNS Number : 1346N
Predator Oil & Gas Holdings PLC
28 September 2021
FOR IMMEDIATE RELEASE
28 September 2021
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")
Investor Presentation and Operations Update
Highlights
-- Prioritise gas as sustainable fuel in the Energy Transition
-- 6 zones selected for rigless testing in MOU-1
-- Proposed three-well drilling programme for Q1 2022
-- Compressed Natural Gas Development targeted for "First Gas" H1 2023
-- Project-based funding being explored
-- Merger of Irish subsidiaries considered to create gas infrastructure-led materiality
-- CO2 EOR delivers positive results to drive further business development
Predator Oil & Gas Holdings Plc (PRD), the Jersey-based Oil
and Gas Company with operations in Morocco, Trinidad and Ireland
focussed on gas as a sustainable lower carbon fuel for the Energy
Transition, is pleased to announce that CEO Paul Griffiths will
lead a live presentation to update investors on the current
business outlook via the Investor Meet Company platform on Tuesday
28th September at 16:00 UK local time.
The Investor Presentation is available on the Company's website
at:
https://www .predatoroilandgas.com
Morocco
The MOU-1 well was successfully drilled, logged and completed
within budget at a cost of US$3.3 million. Drilling time to the
primary target, a seismic amplitude anomaly, was 12 days.
MOU-1 confirmed the pre-drill prognosis by validating a seismic
amplitude anomaly covering an area of at least 4km(2).
Post well evaluation, based on an analogous offset well from the
Rharb Basin, has confirmed that 6 zones within the primary target
should be evaluated by a rigless well test.
A further study is being commissioned to optimise the size of
perforating guns required, taking into consideration borehole
conditions and the increase in mud weight that was required to
drill through a significantly over-pressured section.
The operations team, with significant Rharb Basin drilling
experience, reported that the MOU-1 well encountered a very similar
geological section to that of the Rharb Basin, with evidence of gas
over several hundreds of metres of gross section penetrated by the
well.
Rigless testing will assess whether or not MOU-1 has the
capability to flow gas at a sustained rate of at least 5 mm cfgpd.
At this rate an initial Compressed Natural Gas ("CNG") development
becomes profitable for gas sales to industry at a price of
US$11/mcf, which ignores any increase in gas prices that may result
from the current European Energy Crisis.
Drilling plans are being prepared to drill, using an in-country
rig, three follow-up wells as early as possible in Q1 2022,
allowing a minimum of three months for the import of additional
long-lead well items and for potential COVID-related supply chain
delays.
Following the encouraging results from MOU-1, MOU-4 and MOU-5
are proposed to test the core area of the "MOU-4 Tertiary Fan",
covering an area of at least 30km(2). The extreme western limit of
this feature was penetrated by MOU-1. An additional Environmental
Impact Assessment ("EIA") has been commissioned for these proposed
well locations.
A successfully tested MOU-4 well would allow potential upscaling
of future CNG production to 25 mm cfgpd, whilst similar success at
the MOU-5 location could increase CNG production to up to 100 mm
cfgpd, although at this rate transport of CNG by rail might become
an option.
A further prospect for drilling has been identified as "MOU-NE".
Its location is being included in the new EIA. This is a basal
Jurassic target at approximately 1,200 metres drilling depth and
within the drilling capability of the currently available
in-country rig. The prospective region covers an area of
potentially up to 105km(2) and the proposed well will test part of
a large carbonate bank. Offset well TAF-1X to the east has
reservoir development within this target interval and gas shows in
the lower part of the Jurassic. Success for MOU-NE, depending on
the scale of a potential gas discovery, could open up a welcomed
gas export market to Europe through the Maghreb Gas Pipeline
(passing this year into 100% Moroccan ownership).
Depending on well results, up to four wells would potentially be
available for rigless testing to provide economies of scale (firm
being MOU-1 and contingent being MOU-4, MOU-5 and/or MOU-NE).
Successful testing of MOU-1 and the potential for further
success in the step-out drilling programme would accelerate the
first stage of a CNG development. The proposed MOU-4 well location
has direct access to the main highway 1.5 kms away. This provides a
link to the larger industrial centres in Casablanca for
example.
A CNG development is compatible with addressing Morocco's
geographically diverse distribution of potential gas customers,
currently stranded by a lack of a fully evolved gas distribution
network. CNG developments do not involve long delays in pipeline
permitting and construction nor do they require large capital
investment. Given the potential near-term scalability offered by
the interpretation of the MOU-1 well results, a CNG development can
supply the industrial market with the gas it requires for
investment decisions to be made by a realistically achievable
"First Gas" date of H1 2023.
A clear and transparent path to "First Gas", modest levels of
capital investment, a gas shortage and an as yet undiluted licence
interest over a prospective area of 7,269km(2), is the catalyst for
potential pre-development investment at project level by those
seeking to access gas supplies in an increasingly uncertain and
volatile market.
Trinidad
The Company was recently invited by the Government of Trinidad
and Tobago's Steering Committee on CO2 EOR (the "Committee"),
chaired by the Permanent Secretary at the Ministry of Energy and
Energy Industries, to provide an update on the Inniss-Trinity CO2
EOR operations.
Approval for the Company to present to the Committee an update
on its CO2 EOR operations at the Inniss-Trinity field was given by
the CEO of Heritage Petroleum, a Committee member.
The Company duly reported to the Committee that:
-- 469 metric tonnes of CO2 were sequestrated for the 4 months
from April to July this year following the recommencement of CO2
injection at AT-5X;
This was despite COVID and HSE restrictions that prevented
night-time operations.
-- the AT-12 well was continuing to produce at oil rates higher
than the rates achieved in the months prior to the start of CO2
injection in May 2020;
-- the observed reservoir pressure build-up in a number of wells
in the AT-4 Block had increased faster than predicted prior to CO2
injection in April,
-- a maximum reservoir pressure of 1,089 psi had been reached in
one well on 9 June 2021, over 4 months ahead of the pre-injection
prediction;
-- preparations had been made to restore several wells to
production through workover based on the encouraging signs of
reservoir pressure build-up that the Company had observed.
The Committee was set up on 19 February 2021 to address Trinidad
and Tobago's Nationally Determined Contribution Commitment under
the Paris Agreement. CO2 EOR was recognised as an important
contributor to carbon capture and sequestration.
The Company designed, developed and successfully executed
Trinidad's first CO2 EOR project in the last 25 years and has
engaged with the Ministry of Energy and Energy Industries over 5
years to help develop the case for CO2 EOR in Trinidad's mature
producing fields.
Regretfully the Committee was made aware of the fact that the
operator, FRAM Exploration Trinidad Ltd ("FRAM") of the
Inniss-Trinity Incremental Production Services Contract ("IPSC")
had unilaterally ordered Predator Oil & Gas Trinidad Ltd.
("POGT"), without prior notice, to suspend immediately its CO2 EOR
operations and remove all equipment "within 24 hours", even though
the succeeding day was a bank holiday in Trinidad. The Committee
was unaware of this request.
Personnel from POGT and Massy Gas Products Trinidad Ltd. (part
of one of Trinidad's largest industrial conglomerates), qualified
in handling CO2 gas, were initially denied access to the
Inniss-Trinity field. The unforeseen shut-down of CO2 EOR
operations had the potential to create HSE and environmental
compliance issues if not properly managed and FRAM was made aware
of this fact by POGT.
POGT will not remove the CO2 EOR equipment and facilities from
the Inniss-Trinity field until official approval has been seen from
Heritage Petroleum, the Environmental Monitoring Authority and the
Ministry of Energy and Energy Industries, all of whom were involved
in approving the commissioning of the CO2 EOR facilities, to remove
the equipment which will be safely and securely stored and
available for inspection.
POGT continues to closely monitor the situation.
The Well Participation Agreement ("WPA") with FRAM Exploration
Trinidad Ltd. remains in place and all benefits that have accrued
to POGT under the WPA and the Loan advanced to FRAM still
apply.
POGT has informed Heritage Petroleum in writing that it wishes
to be considered for the Inniss-Trinity IPSC were the IPSC to be
become available in 2022
CO2 EOR Business Development .
POGT has appointed Myodeen Ali as its country manager for
Trinidad with the task of expanding the CO2 EOR business with
selected indigenous companies that wish to partner with POGT in the
roll out of commercial CO2 EOR operations. Technical studies have
begun on one such opportunity and other potential projects are
being screened.
Mr. Ali has 32 years of experience in the oil industry,
particularly in production operations focussed on successfully
maximising production from Trinidad's mature producing reservoirs
using local knowledge and sound industry practices. POGT has
trained Mr. Ali over the past 2 years in the handling of CO2
operations from subsurface completions for CO2 injection to
understanding surface facilities and the operation thereof.
POGT retains exclusivity over Trinidad's surplus liquid CO2
supply into 2023.
Ireland
The Mag Mell offshore LNG project continues to make progress
with a public consultation submission to the Cork County Council
Development Plan having been made in July this year.
The National Marine Plan Framework and the Maritime Area
Planning Bill was published on 1 July 2021.
Mag Mell Energy Ireland Ltd is now starting the Major Accident -
Health and Safety pre-application consultations under the Strategic
Infrastructure guidelines.
The Company is seeking to merge Mag Mell Energy Ireland Ltd and
Predator Oil and Gas Ventures Ltd, who still have outstanding
applications for successor authorisations for the Corrib South gas
exploration and Ram Head gas appraisal and potential gas storage
projects. Synergies would create an integrated upstream and
downstream company that would be well-positioned to seek much
larger financial partners focussed on gas, where a change in
immediate priorities is being contemplated as a result of Europe's
current gas crisis. Subject to attracting the right partners, a
possible acquisition of an interest in the producing Corrib gas
field is being reviewed. The diverse range of assets in the
Company's Irish portfolio, together with the Company's progress on
its Mag Mell offshore LNG project and its management's long
experience offshore Ireland, would potentially make it an ideal
junior partner for larger multi-nationals wishing to evaluate the
opportunity to develop an upstream and downstream gas position in
Ireland as Ireland potentially re-evaluates the role of gas as a
sustainable fuel through the Energy Transition.
Online Investor Presentation
The online presentation is open to all existing and potential
shareholders.
Questions can be submitted at any time during the live
presentation via the "Ask a Question" function. Although the
Company may not be able to answer every question it receives, it
will address the most prominent within the confines of information
already disclosed to the market. Responses to the Q&A from the
live presentation will be published at the earliest opportunity on
the Investor Meet Company platform.
Investor feedback can also be submitted directly to management
post-event to ensure the Company can understand the views of all
elements of its shareholder base.
Investors can sign up to Investor Meet Company for free and add
to meet Predator Oil & Gas Holdings Plc :
https://www.investormeetcompany.com/predator-oil-gas-holdings-plc/register-investor
Investors who have already registered and added to meet the
Company will be automatically invited.
Paul Griffiths, CEO of Predator Oil & Gas Holdings Plc
commented :
"The online Investor Presentation is an opportunity for
shareholders and potential shareholders to catch up with the
business development strategy of the Company during what has been a
very busy period following the successful drilling of MOU-1 onshore
Morocco. The "Energy Crisis" and resurgence of gas as a sustainable
fuel during the Energy Transition for many years to come has
impacted immediate priorities for everyone. Gas assets are now more
valuable and the potential to find partners at the project level is
greater than it has been for a long time since before the onset of
COVID. The fossil fuel industry has contracted and opportunities
are now less prevalent. Our decision to maintain high equity levels
in our projects has been validated. Moving to AIM is opportune and
gives us greater substance and a market that larger companies are
more familiar with."
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
Lonny Baumgardner Chief Operating 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 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 drilling programme is under
review.
Predator is an oil and gas exploration company participating
with FRAM Exploration Trinidad Ltd. in further developing the
remaining oil reserves and sequestrating anthropogenic carbon
dioxide in the producing Inniss Trinity oil field onshore Trinidad,
primarily through the application of C02 EOR technology. Potential
for cash flow exists by pursuing Enhanced Oil Recovery using
locally sourced liquid carbon dioxide for injection into and
storage within the oil reservoirs ("C02 EOR"). Near-term expansion
and production growth potential is focussed on upscaling the C02
EOR operations in the Inniss-Trinity oil field, subject to all
necessary approvals.
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 Kinsale gas field and Barryroe oil field in
the Celtic Sea.
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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