Predator Oil Regulatory News (PRD)

FOR IMMEDIATE RELEASE

17 March 2022

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")

Operations update and Placing to raise £1.035 million

Highlights

· Secure option on rig to drill within a definitive time window

· Planned construction of two well pads

· Competitiveness in accessing well services and materials enhanced

· Second gas target identified for first well

· Exploration target for Jurassic gas being matured

· Quote received and reviewed for MOU-1 well testing

Predator Oil & Gas Holdings Plc (PRD), the Jersey-based Oil and Gas Company with operations in Morocco, Ireland and Trinidad focussed on diversification and security of European energy supply in the context of the Energy Transition and based on gas as a sustainable lower carbon fuel, is pleased to announce that it has conditionally placed 11,500,000  new ordinary shares of no par value in the Company (the "Placing Shares") at a placing price of 9 pence each (the "Placing Price") to raise £1.035 million before expenses (the "Placing").

The Placing was significantly oversubscribed and utilises 5,000,000 million shares of the Company's existing headroom shares ("First Tranche Shares") and 6,500,000 of the Company's additional available headroom shares after 27 March 2022 ("Second Tranche 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.

Lonny Baumgardner, an executive director of the Company, has participated in the Placing for Ordinary Shares for a value of £50,000 at the Placing Price. This participation is equivalent to 4.83% of the Placing.

Novum Securities are acting as sole placing agents to the Company.

Use of Proceeds

The Company is primarily intent in the near-term on expanding and executing its planned 2022 drilling operations in Morocco as issues relating to security and cost of gas supply are set to be critical factors during the Energy Transition influencing the ability to deliver affordable energy.

The strengthening of the Company's financial resources facilitates the exercise of an option to drill using the Star Valley Rig 101 within a definitive time window following all regulatory, environmental and partner approvals. A rig inspection will be carried out shortly by the Company. The option covers drilling up to three wells in 2022.

Civil works to construct the MOU-4 and MOU-5 well pads will commence following receipt of all outstanding regulatory, environmental and partner approvals.

Rising costs of materials and services impacted by current tensions in Eastern Europe dictate that it is prudent to allow for cost inflation to maintain competitiveness in seeking quotes for well services and equipment and for maintaining aggressive drilling timelines.

MOU-5 is now being prioritised ahead of MOU-4 for the first well in the drilling programme. Following desk-top modelling of seismic response to gas in MOU-1, two shallower gas targets additional to the primary "MOU-4 Fan" appraisal target have been identified at the MOU-5 well location. The shallowest of these targets had strong formation gas shows in MOU-1 (dry gas) and was penetrated in MSD-1 where good quality reservoir was logged.

The MOU-NE prospective lead is being matured as a potential third well in the planned drilling programme. 2D seismic reprocessing over this feature will be completed by the end of May 2022. The primary target following further desk-top studies is now anticipated to be a Lower Jurassic carbonate platform build-up with potential for leached porosity development covering potentially up to 100 sq. km., albeit within an area that lacks extensive seismic coverage. Dry gas shows were encountered in TFR-1X at the top of this interval. MOU-NE will potentially test the play concept some 1500+ metres higher than the TFR-1X structure in an area favourably located for gas charge from the MOU-1 Tertiary basin. It represents a high-risk target but an opportunity to test for Jurassic gas close to infrastructure at a drilling depth of less than 1,450 metres TVD KB.

Additional funding allows the Company to further progress its: FSRU LNG import projects for Ireland and, potentially, Morocco; set-up the next CO2 EOR project in Trinidad; and further develop its concept to seek synergies for green hydrogen and natural gas hybrid developments.

Existing working capital is sufficient to meet the Company's existing commitments and corporate overheads in 2022, including the testing of MOU-1 which will be synchronised with mobilising the well services and equipment for MOU-5 to reduce mobilisation and demobilisation costs. A quote for testing has been received from Schlumberger and has been reviewed.

"Use of Proceeds": The Company currently intends to spend the funds raised as stated above. However, there may be circumstances where, for sound business reasons, a re-allocation of funds may be deemed prudent or necessary. The actual amount that the Company spends in connection with each of the intended uses of proceeds may vary significantly from the amounts specified above 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.

Completion of the Placing

Completion of the Placing is conditional on, inter alia:-

The First Tranche 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 ("First Admission") on or before 25 March 2022 (or such later date as may be agreed by the Company and Novum Securities) and the Second Tranche 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 ("Second Admission") on or before 31 March 2022 (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 First Admission in respect of all the First Tranche Shares proposed to be issued on completion of the Placing. It is expected that First Admission will become effective, and that dealings in the First Tranche Shares are expected to commence, at 8.00 a.m. on 25 March 2022.

Applications will be made to the FCA and to the London Stock Exchange for Second Admission in respect of all the Second Tranche Shares proposed to be issued on completion of the Placing. It is expected that Second Admission will become effective, and that dealings in the Second Tranche Shares are expected to commence, at 8.00 a.m. on 31 March 2022.

The rights attaching to the Placing Shares will be uniform in all respects and all of the Placing Shares will rank 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 First Tranche Shares the enlarged Share Capital will be 297,946,267 ordinary shares of no par value.

Following Admission of the Second Tranche Shares the enlarged Share Capital will be 304,446,267 ordinary shares of no par value.

Paul Griffiths, CEO of Predator Oil & Gas Holdings Plc commented:

"Today's announcement reinforces the Company's commitment to deliver an aggressive, expansive and exciting 2022 drilling programme in Morocco building on the success of the MOU-1 drilling campaign. The hard work necessary to establish the Company as a successful and proficient, cost-effective operator in Morocco last year, together with a cautious but thorough approach to the technical evaluation of the MOU-1 well results dictated by management's extensive subsurface experience and understanding of technical risks and commercial opportunities, is now set to pay dividends. We are perfectly positioned to take advantage of the "dash for gas" in Europe with a drilling programme that has been carefully constructed to maximise the opportunity to appraise and develop gas close to infrastructure whilst also creating exploration upside within a framework of maintaining a disciplined approach to capital spending and within the confines of market conditions We seek to lead by example and not to follow others."

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 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 testing programme is being developed and a further drilling programme is under review.

Predator is seeking to further develop the remaining oil reserves of Trinidad's mature onshore oil fields through the application of CO2 EOR techniques and by sequestrating anthropogenic carbon dioxide to produce "greener" oil.

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 decommissioned Kinsale gas field in the Celtic Sea.

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.

The Company has a highly experienced management team with a proven track record in operations in the oil and gas industry.