Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
It's a positive update, with the usual logistics delays that can be expected in the current world climate. Testing of MOU 1 to be completed within a month is good news, with updates along the way.
The company continues to develop its Morocco assets towards production, which is better than waiting for a deal to arrive from a prospective purchaser. This has the benefit of continually increasing the value of the asset.
Looking forward to an interesting September.
Block out the noise from the troll maggots.
Future drilling opportunities
The updip appraisal of the Jurassic target encountered in MOU-4 is a key objective of the Company.
Three preliminary drilling locations are being selected for inclusion in a new Environmental Impact Assessment ("EIA").
Well design and sourcing of long lead well inventory has commenced.
A field trip is being planned for the autumn to evaluate the reservoir potential of the entire interval of interest in Jurassic surface exposures to the south of the Guercif licence area.
Geochemical source rock quality and maturation studies, including evidence for migrated gas, for the Jurassic section penetrated in the MOU-4 well are expected to be completed in September.
Two other near-term drilling opportunities are also being assessed, one location covered by an existing EIA and the other to be added to the new EIA. Evaluation of the higher pressure shallow gas encountered in MOU-3 and a southwest extension of the MOU-3 structure would be the targets for future drilling.
GRH on Twitter 🐤
"The UP DIP Jurassic drill / test Is IN ADDITION to the 150 NETT metres already discovered
(I have posted about this as I have never seen the like In all my investing decades)"
🦖🦖🦖🦖🦖 (my dinosaurs)
3.8.2 CNG “Proof of Concept”
Predator is currently progressing a CNG “proof of concept” project. The target for first CNG sales is April
2024 as shown in Figure 3-25. However, this is considered to be the earliest start date and is dependent
on the delivery times for CNG trailers and compressors.
Pages 137-138
Assuming that the Placing is fully taken up and following the issue of the Replacement Shares,
the issued and fully paid issued share capital of the Company is expected to be as shown in
the following table:
Issued and credited
as fully paid
Class of Share Number
Nominal
value
Ordinary 562,502,088 £Nil
3.4 Other than the issue of New Ordinary Shares referred to in paragraph 3.5 below, the Company
has no present intention to issue any new Ordinary Shares.
Forward work programme
Based on an unsuccessful bid by management in 2017 for the Moruga west field, adjoining
and extending into Cory Moruga, the Company believes that there may be substantial
overlooked oil resources present in Cory Moruga and has prepared the technical material for
the independent Competent Persons Report contained in Part VII “Competent Persons’
Reports” of this Document.
Subject to and only with the consent of the MEEI for the acquisition of TRex, the next step
would be desktop design work for miscible CO2 EOR project for the Cory Moruga asset with
well planning for an additional appraisal/development well no earlier than Q3 2024 following
compilations and review of all available technical and environmental data. A Certificate of
Environmental Clearance will be required for CO2 EOR operations. This process is likely to
take six months to complete.
The parties having entered into fully termed long-form legal documentation on 8 March 2023
in relation to the binding term sheet with Challenger Energy Group PLC and relevant
subsidiary entities (“CEG”) as announced on 19 December 2022 (the “TRex Transaction”) and
have agreed to work together to secure the required consents and agreements with MEEI
and thus achieve completion as soon as reasonably practicable on or before 30 May 2023,
with a long stop date of 31 August 2023.
The Company announced on 1 June 2023 that the conditions for completion of the
transaction had not been satisfied as at 30 May 2023. Accordingly, the Company and
39
Challenger mutually agreed to an extension of the 30 May 2023 target date for completion of
the intended transaction, to coincide with the long-stop date of 31 August 2023.
However, it is therefore unlikely that the process of re-negotiation of the commercial terms
and work programme for Cory Moruga will be completed and approved by the long stop date
of 31 August 2023. Re-negotiated terms and the work programme proposed by the Company
have to be approved by the Company before the TRex Transaction can complete after which
the consent of the MEEI will be required to go through a regulatory process of indeterminate
length of time.
On the basis of the above, currently no firm working capital commitments can be entered into
in relation to the TRex Transaction. Consequently, the Placing is not raising any funds for the
TRex Transaction.
The probable delay in completing the TRex Transaction provides the Company with different
options to settle the consideration for the acquisition of TRex through the issue of shares at a
later date or through the participation of an in-country peer company in the Cory Moruga
project prior to completing the TRex Transaction for a cash consideration equal to the amount
required to be paid by the Company on completion of the TRex Transaction.
Forward Programme
The Company has completed the MOU-3 and MOU-4 wells for rigless testing. The Company
will rigless test MOU-1, MOU-3 and MOU-4 to establish gas flow rates. This testing
programme will determine whether or not the threshold amount of gas required of one million
cubic feet of gas per day (0.35 BCF / year) for a CNG development in the short term for a
single end user in the Moroccan industrial market has been reached. Upon the results of this
testing programme a Financial Investment Decision (“FID”) may be taken to initiate the CNG
development based on a net capital requirement of US$5.13 million. Subject to a successful
rigless testing programme and an FID it is anticipated that a number of different options for
financing the capital required for the initial CNG development will be considered.
Subject to the results of the MOU-1, MOU-3 and MOU-4 rigless testing programmes, the
potential for CNG growth will be evaluated in the medium term to assess the potential to
scale up to 34 million cubic feet of gas per day (approximately 12 BCF/year).
The Company is seeking through this Document to utilise the majority of the Net Placing
Proceeds for MOU-4 well costs and rigless well testing of MOU-1 and MOU-3 and MOU-4.
The gross cost of this work programme for the next 12 months is estimated to be
£3,802,804.
Number of Existing Ordinary Shares 426,403,418
Number of Placing Shares 90,909,090
Replacement Shares issued to Directors 45,189,580
Enlarged Share Capital 562,502,088
Percentage of Enlarged Share Capital represented by the New
Ordinary Shares
24.2 per cent.
Use of proceeds
Expenditure connected with Moroccan Guercif drilling £3,412,804
MOU-4 contingent testing £320,000
Compressed Natural Gas “Proof of Concept” FEED study and EIA 1 £3,976,179
Corporate Overheads £1,240,238
Total £8,949,221