REG - Predator O&G Hldgs - Extension of 2022 Star Valley Rig 101 Contract

Predator Oil & Gas HoldingsAnnouncement

05/02/2024 07:00

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RNS Number : 9330B  Predator Oil & Gas Holdings PLC  05 February 2024

FOR IMMEDIATE RELEASE

5 February 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")

 

Extension of 2022 Star Valley Rig 101 rig contract

 

Highlights

 

·    Star Valley Rig 101 contracted to drill MOU-5 during April - May 2024

 

·    MOU-5 will target the 177km² Jurassic structure

 

·    Fully-funded based on reduced well cost and discretionary cash

 

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 announce that it has signed an extension to the Company's 2022 rig contract
for the use of the Star Valley Rig 101, which is currently available in
Morocco.

 

The extension will facilitate, subject to regulatory approvals and consent,
the drilling of the MOU-5 well to evaluate the 177km² Jurassic structural
closure in a crestal location, the limit of which was penetrated in MOU-4 in
2023.

 

MOU-5 is expected to be drilled between 1 April to 31 May 2024 in order to
avail of in-country well services that will remain following the completion of
the Company's rigless testing programme, which is currently underway, thereby
reducing mobilisation costs for well equipment and services.

 

The majority of the critical long lead items required for drilling are
available from the Company's surplus well inventory stored  in its Guercif
warehouse, thereby potentially further reducing drilling costs.

 

MOU-5 is not expected to be drilled over-balanced with heavier drilling mud as
the problematic mobile clay formations present in MOU-1, MOU-2 and MOU-3 are
not expected to be developed at the MOU-5 well location.

 

The primary objective is a potentially thick development of porous and
permeable, early Jurassic carbonate reservoirs sealed by overlying claystones.

 

The Company is fully-funded to drill MOU-5 using currently uncommitted,
discretionary, cash on the Company's balance sheet.

 

Paul Griffiths, Executive Chairman of Predator, commented:

"We are delighted to have concluded the extension to our 2022 rig contract as
it provides us with the perfect opportunity to accelerate the cost-effective
and fully-funded drilling of a large Jurassic structure adjacent to our area
of focus for rigless well testing.

 

 

A successful MOU-5 drilling, testing, appraisal and development programme
would potentially open up opportunities to exploit our onshore proximity to
the Maghreb Gas Pipeline, which is located less than 10 kilometres from the
MOU-5 drill site. This is a significant advantage for any future potential
developer of a gas find as it will reduce capital infrastructure costs and the
lead time to "First Gas".

 

We also completed a very successful planning trip to Trinidad last month as a
result of which we made significant progress towards establishing an operating
and administrative presence.  We also identified additional workover
opportunities on the Cory Moruga licence area and evaluated opportunities for
re-perforating wells by deploying the Sandjet testing technology to pinpoint
missed oil pays in some of the legacy wells.

 

The Board remains committed to generating activity and newsflow in the weeks
and months ahead and are seeking potentially to take the Company to another
level through continued drilling success."

 

 

For further information visit www.predatoroilandgas.com
(http://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 (http://www.predatoroilandgas.com) :

 

Enquiries:

 Predator Oil & Gas Holdings Plc                                                                                                                                                                                                                                                                        Tel: +44 (0) 1534 834 600

 Paul Griffiths                Executive Chairman                                                                                                                                                                                                                                                       Info@predatoroilandgas.com (about%3Ablank)

 Lonny Baumgardner    Managing Director

 Novum Securities Limited                                                                                                                                                                                                                                                                               Tel: +44 (0)207 399 9425

 David Coffman / Jon Belliss

 Oak Securities                                                                                                                                                                                                                                                                                         Tel: +44 (0)203 973 3678

 Jerry                                                                                                                                                                                                                                                                                                  Jerry.keen@oak-securities.com
 Keen

                                                                                                                                                                                                                                                                                                      Tel: +44 (0)203 884 9388
 Fox Davies Capital

 Daniel Fox-Davies/James Hehn

 Flagstaff Strategic and Investor Communications                                                                                                                                                                                                                                                        Tel: +44 (0)207 129 1474

 Tim Thompson                                                                                                                                                                                                                                                                                            predator@flagstaffcomms.com (about%3Ablank)

 Mark Edwards

 Fergus Mellon

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.

 

 

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