Last checked at 19 Jul 2021 14:00
FOR IMMEDIATE RELEASE
聽19 July 2021
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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")
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Operational highlights and Placing to raise 拢1.3 million
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Operational highlights
路 MOU-1 TGB-2 target successfully penetrated at 1229 metres TVD MD.
路 Gross section of 75 metres corresponds to pre-drill seismic "bright spot" with increased resistivity log response and formation gas show.
路 TGB-2 now interpreted as western distal limit of the MOU-4 submarine fan ("MOU-4 Target")
路 Potential for structural/stratigraphic trap of up to 60 km虏
路 Proposed forward plans to include rigless testing and preparations for an appraisal well
路 MOU-1 establishes a basis for commercial joint venture discussions with gas-offtakers in the Moroccan industrial sector
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Predator Oil & Gas Holdings Plc (PRD), the Jersey-based Oil and Gas Company with operations in Trinidad, Morocco and Ireland is pleased to announce that it has conditionally placed 26,000,000 聽new ordinary shares of no par value in the Company (the "Placing Shares") at a placing price of聽5聽pence each (the "Placing Price") to raise 拢1.3 million before expenses (the "Placing").
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The Placing was significantly oversubscribed and utilises the Company's existing headroom shares under the Financial Conduct Authority restrictions for companies on the Official List (standard listing segment) of the London Stock Exchange's main market for listed securities.
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Novum Securities are acting as sole placing agents to the Company.
Use of Proceeds
The Company is intent on rapidly building upon the safe and successful MOU-1 drilling campaign to further appraise, in consultation with its partner, the large MOU-4 Target. The Company has an existing option to use the Star Valley Rig 101 for the drilling of MOU-4 during Q4 2021. Commercial discussions will be advanced with gas off-takers in the industrial sector in Morocco to seek joint venture partnerships to secure first rights for a future potential Gas Offtake Agreement. The work programme below will address these strategic objectives.
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WORK PROGRAMME | REASONS |
MOU-1 Perforating & testing programme | TGB-2 target successfully reached according to pre-drill prognosis. Higher log resistivity and dry gas readings in TGB-2 unit over a gross interval of 75 metres despite significant increase in mud weight required whilst drilling. Perforating and testing warranted to evaluate commercial flow potential. |
MOU-1 Petrophysical log analysis after testing | Further evaluate potential pay thicknesses and quality for input into MOU-4 Target upside prospective resources estimates. |
MOU-1 to MOU-4 Target Seismic modelling | MOU-1 validated the pre-drill seismic "bright spot" anomaly. MOU-1 will help calibrate MOU-4 Target seismic "bright spots" to adjust a final well location to appraise the MOU-1 drilling results. Preliminary seismic re-correlation of the TGB-2 objective to the MOU-4 Target confirms that MOU-1 successfully proved up and substantially de-risked the MOU-4 Target. |
MOU-4 Target Updated CPR incorporating MOU-1 results | MOU-1 preliminary results have enhanced the P10 Case for MOU-4 Target prospective gas resources by identifying a potential structural/stratigraphic closure of up to 60 kms虏. Updated CPR to reflect new positive information on potential area of trap. |
聽Compressed Natural Gas Study ("CNG") Update | Presence of dry gas in MOU-1 reduces development costs for CNG. Facilitates commercial discussions with off-takers of gas in Morocco in relation to first right of refusal for potential future Gas Offtake Agreement. 聽 |
MOU-4 Target Environmental Impact Assessment ("EIA") | MOU-1 has confirmed the basis for a proposed step-out well for the MOU-4 Target - the location for which is not covered by the current EIA. |
MOU-4 Target Well inventory purchase | Import long-lead consumables (cement and mud chemicals, casing and well heads) in advance of drilling MOU-4 (targeted Q4 2021) to replenish MOU-1 well inventories. Due to COVID manufacturing capacity has been curtailed. |
General working capital | Advance commercial discussions with Moroccan gas off-takers in the downstream industrial sector - off-take via a CNG development concept with potential joint venture partnerships. 聽 Evaluate opportunity to complete an existing well for gas production in another basin in Morocco. 聽 Progress AIM admission to increase the opportunity to further develop the downstream LNG and CO2 sequestrations sectors of the Company's portfolio. These represent growth opportunities during the Energy Transition with the potential to divest at the right time to larger peer companies specialising in these specific sectors. |
Current working capital | Current working capital is sufficient for existing commitments and corporate overheads through 2021. These include closing out of drilling costs for MOU-1; LNG desk-top studies and public consultation requirements; and ongoing CO2 injection in Trinidad with reactivation of wells for production based on currently observed rising reservoir pressures. Timing of well workovers has been influenced by a difficult operating environment in Trinidad caused by the resurgence of COVID. |
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The Company intends to utilise the net funds raised in varying proportions for the programmes stated above. However, there may be circumstances where, for sound business reasons, a re-allocation of funds may be deemed prudent or necessary and will depend on a number of factors, including those referred to under "Risk Factors" in the Company's published Annual Reports and UKLA IPO Prospectus.
The Company is in the process of appointing advisers in respect of seeking admission of its shares to trading on the AIM market which provides more flexibility for high growth companies and represents a market better suited both to the mature level of development of the Company's Energy Transition portfolio of projects across upstream and downstream sectors and for developing M & A activity.
Completion of the Placing
Completion of the Placing is conditional on,聽inter alia:-
The Placing Shares being admitted to listing on the Official List (standard listing segment) and to trading on the London Stock Exchange's main market for listed securities ("Admission") on or before 3 August 2021 (or such later date as may be agreed by the Company and Novum Securities).
Admission, Settlement and Dealings in Placing Shares
Applications will be made to the FCA and to the London Stock Exchange for Admission in respect of all the Placing Shares proposed to be issued on completion of the Placing. It is expected that Admission will become effective, and that dealings in the Placing Shares are expected to commence, at 8.00 a.m. on 3 August 2021.
The rights attaching to the Placing Shares will be uniform in all respects and all of the Placing Shares will rank聽pari passu, and form a single class for all purposes with, the existing issued shares of no par value in the Company.
Following Admission of the Placing Shares the enlarged Share Capital will be 292,946,267 ordinary shares of no par value.
Paul Griffiths, CEO of Predator Oil & Gas Holdings Plc commented:
"MOU-1 was safely and successfully drilled within the Company's pre-drill budget estimates and completed for proposed rigless testing after presentation of results to our partner. Our immediate priority is to incorporate the positive results of the MOU-1 well into the evaluation of the MOU-4 Target to optimise the location for a step-out well. The recent appointment of Lonny Baumgardner as Chief Operating Officer following the completion of MOU-1 includes the portfolio to develop the Company's ties with the Moroccan downstream gas sector for which he is uniquely placed. Significant potential exists for joint venture partnerships with gas-offtakers as the requirement for gas in Morocco becomes an increasing priority . MOU-1 delivered a result that allowed us to de-risk the MOU-4 Target whilst unexpectedly validating the pre-drill seismic "bright spot", related to the presence of gas, as being attributable to the western limit of the MOU-4 Target and not an isolated target as previously interpreted above what was thought to be the pre-drill MOU-4 Target equivalent section."
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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聽www.predatoroilandgas.com:聽
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Enquiries:
Predator Oil & Gas Holdings Plc Dr. Stephen Staley Non-executive Chairman Paul Griffiths Chief Executive Officer Lonny Baumgardner Chief Operating Officer | Tel: +44 (0) 1534 834 600 Info@predatoroilandgas.com 聽 |
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Novum Securities Limited Jon Belliss 聽 Optiva Securities Limited Christian Dennis | Tel: +44 (0) 207 399 9425 聽 聽 Tel: +44 (0) 203 137 1902 |
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Flagstaff Strategic and Investor Communications Tim Thompson聽 Mark Edwards Fergus Mellon | Tel: +44 (0) 207 129 1474 predator@flagstaffcomms.com 聽 |
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Notes to Editors:
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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.
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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 safely and successfully completed and a follow-up drilling programme is under review.
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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.
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The Company has a highly experienced management team with a proven track record in the oil and gas industry.
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