Predator Oil & Gas Holdings PLC Operational and Corporate Update (0244P)

TIDMPRD

RNS Number : 0244P

Predator Oil & Gas Holdings PLC

15 February 2021

FOR IMMEDIATE RELEASE

15 February 2021

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")

Operational and Corporate Update

Highlights

   --    Guercif MOU-1 well pad construction programmed for April 2021 
   --    AT-5X being prepared for additional CO2 injection 
   --    Encouraging swab tests and investigative results for AT-7, AT-8 and AT-10 

Predator Oil & Gas Holdings Plc (Predator), the Jersey-based Oil and Gas Company with operations in Trinidad, Morocco and Ireland, announces that preparations for drilling MOU-1 in the Guercif licence onshore Morocco have begun and that further progress has been made on implementing the Company's forward work programme for the Pilot CO2 EOR Project ("Pilot CO2 EOR") in the Inniss-Trinity field onshore Trinidad.

Guercif MOU-1 drilling programme

-- Operational planning for the MOU-1 well in the Guercif Petroleum Agreement area has commenced and is on schedule.

   --    The MOU-1 well pad construction is being prepared for April 2021. 

-- The drilling and well engineering program is being reviewed internally before release for the purposes of third party audit and any recommended modifications.

Inniss-Trinity CO2 EOR

-- Swab tests and investigation of two of the four wells originally selected to evaluate well condition and, if suitable, return to production have been completed. A third well, not in the original program, was added to the investigative work.

-- All three wells recovered oil during swabbing operations (approximately 10 barrels in the recovered fluid), having previously only produced water. Fluid levels in the wells have risen in response to CO2 injection at AT-5X. The encouraging results facilitates moving to the next stage to reactivate at least two of these wells for production.

-- Swab tests and investigations confirm potential for realising pre-injection desktop production plateau forecasts in the range 243 -547 bopd from Herrera #2 Sand

-- Three further wells will be swabbed and investigated as soon as well services are released from other work

   --    AT-5X is being prepared for further CO2 injection. 

The addition of the Herrera #2 Sand perforating opportunity in a further well will create an inventory of up to seven production wells versus only three wells used for the forecast production profile in the pre-Piot CO2 EOR Project Plan submitted to the Ministry of Energy and Energy Industries.

During the period from 15 January 2021 to 10 February 2021 WTI oil price has risen from US$ 53.02/brl to US$58.25/brl.

Forward program

   --    Complete swab investigations of remaining three wells 
   --    Further continuous CO2 injection at AT-5X 
   --    Continue enhanced production from existing production wells 
   --    Reactivate two of the seven available wells to add CO2 EOR production 
   --    Determine  increase in incremental oil flow rates over one month of CO2 injection 

Offshore Ireland - Floating Storage and Regasification Unit ("FSRU") and LNG

The Company remains focussed on providing a niche solution to near-term security of energy supply for Ireland during a transition to a dominantly renewable source of energy.

In this context it was reported on the 6 February 2021 that technical problems had forced the shutdown of a key electricity generator (capacity 445 megawatts) until the end of June 2021. On average, gas-fired power plants meet almost 60% of Irish power demand. The shutdown coupled with cold weather on 6 January 2021 and low wind speeds, which cut off most renewable generators, resulted in "amber warnings" where there is enough power to meet demand but where reserve back-up power is critically low.

Nothing better illustrates the security of energy supply issue and the requirement for the near-term solution being proposed by the Company.

On 19 February 2020 it was reported that Ireland was placed 154(th) on global ranking of 180 countries for sustainability and delivering on emissions targets.

Balancing the requirement to improve its global sustainability and emissions ranking with preserving near-term security of energy supply involves an inclusive, pragmatic and diverse approach.

Corporate Update

The Warrant Instrument between Novum Securities Ltd and Predator Oil & Gas Holdings plc (the Company) dated 15 February 2019 granting the right to subscribe in cash for 2,000,000 ordinary shares exercisable at a price per share equal to the subscription price (12p per share) is being amended to allow the exercise date of the warrants to be extended by one year to the third anniversary of the date of the Warrant Instrument. This is in recognition of the fact that COVID-19 had delayed the execution of the Guercif drilling programme by one year.

Similarly, the Warrant Instrument between Novum Securities Ltd and Optiva Securities Ltd and Predator Oil & Gas Holdings plc (the Company) dated 24 May 2018 granting the right to subscribe in cash for 2,031,248 and 160,714 ordinary shares respectively exercisable at a price per share equal to the subscription price (2.8p per share) is being amended to allow the exercise date of the warrants to be extended by one year to the third anniversary of the date of the Warrant Instrument. This is also in recognition of the fact that COVID-19 has played a part in extending the Company's original timelines for executing some of its projects.

These existing warrants have already previously been factored into the fully diluted share capital of the Company.

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

"We continue to make solid progress with the Company's CO2 EOR project onshore Trinidad at Inniss-Trinity. Latest results are very encouraging and support the impact CO2 is having in gradually enhancing oil production. Much of the hard work has now been completed and the next challenge is to scale up the injected volumes of CO2 and resulting enhanced oil production to attain the optimum production profile achievable for the AT-4 Block. In Morocco we are excited to be in a position to execute the drilling programme as previously announced. Perseverance in Ireland based on the Company's innovative FSRU LNG concept is paying off as issues regarding security of energy supply have now been crystallised in real terms by recent events. Despite COVID-19 we have continued to make substantive progress, whilst maintaining a sensible balance between risk - reward, and through deploying working capital judiciously, but to maximum effect, over diverse yet equally material projects. "

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: [phone] 
  Dr. Stephen Staley Non-executive Chairman         [e-mail] 
  Paul Griffiths Chief Executive Officer 
 
 Novum Securities Limited                          Tel: [phone] 
  Jon Belliss 
 
  Optiva Securities Limited                         Tel: [phone] 
  Christian Dennis 
 
 Flagstaff Strategic and Investor Communications   Tel: [phone] 
  Tim Thompson                                      [e-mail] 
  Mark Edwards 
  Fergus Mellon 
 

Notes to Editors:

Predator is an oil and gas exploration company with the objective of 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 executing a successful Pilot Enhanced Oil Recovery project 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.

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. A drilling programme, subject to the lifting of COVID-19 restrictions, targeting material prospective gas resources is scheduled for Q2 2021.

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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February 15, 2021 02:00 ET (07:00 GMT)