TIDMPRD
RNS Number : 0018X
Predator Oil & Gas Holdings PLC
25 April 2019
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")
Guercif Permits I, II, III and IV onshore Morocco Technical
Update
Competent Person's Report
HIGHLIGHTS
-- MIOCENE TORTONIAN AND TRIASSIC TAGI RESERVOIR PROSPECTIVE RESOURCES AUDIT COMPLETE
Competent Person's Report ("CPR") prospective resources audit
SLR Consulting (Ireland) Ltd
-- TOTAL NET AUDITED BEST ESTIMATE RECOVEREABLE PROSPECTIVE
RESOURCES OF 474 BCF (943 BCF HIGH ESTIMATE) FOR THE "FIRST TIER"
MIOCENE MOULOUYA PROSPECT AND THE TRIASSIC TAGI PROSPECT
-- ADDITIONAL PROSPECTIVE MIOCENE GAS TRAPS
-- 9 TRIASSIC AND JURASSIC LEADS
-- NO TECHNICAL, CAPACITY OR GAS MARKET REASONS TO PREVENT COMMERCIALISATION OF ANY GAS FIND
Predator Oil & Gas Holdings Plc (PRD), the Jersey-based Oil
and Gas Company, with a portfolio of attractive upstream gas assets
adjacent to European gas infrastructure entry points, is pleased to
provide a prospective resources update on the Guercif Permits I,
II, III and IV ("Guercif") onshore Morocco. Predator (75%) operates
Guercif in joint venture with the Office National des Hydrocarbures
et des Mines ("ONHYM") acting on behalf of the State (25%).
The Guercif area is located approximately 200 kilometres east of
the producing Rharb Basin gas fields and approximately 100
kilometres northwest of the Tendrara gas project.
Following an analysis of existing 2D seismic and well data in
conjunction with an appraisal of the gas market and the Company's
project economics, Predator retained SLR to carry out a third party
prospective resources audit (CPR) of the potential in-place
hydrocarbons initially in the first tier Moulouya Prospect and the
Triassic Prospect, in the Miocene Tortonian and Triassic TAGI
reservoirs respectively.
SLR has reported that the Miocene Tortonian reservoir in the
Moulouya Prospect has a Best Estimate gross gas in place of 646 BCF
with recoverable Best Estimate prospective resources of 320 BCF net
to Predator using only a 66% recovery factor (High Estimate 659 BCF
net to Predator based on higher in-place gas).
Unrisked NPV per BCF of Miocene discovered gas is estimated by
SLR to be US$1.95 million, generating an unrisked estimated NPV for
the Best Estimate net Predator gas resources of US$624 million.
For the sub-salt TAGI reservoir in the Triassic Prospect, SLR
has a Best Estimate gross gas in place of 515 BCF with recoverable
Best Estimate prospective resources of 155 BCF net to Predator
using only a 40% recovery factor (High Estimate 283 BCF net to
Predator based on higher in-place gas).
Unrisked NPV per BCF of Triassic discovered gas is estimated by
SLR to be US$1.34 million generating an unrisked estimated NPV for
the Best Estimate net Predator gas resources of US$207.7
million.
The SLR total combined audited net Best Estimate prospective
resources for the first tier prospects only are rounded down to 474
BCF (943 BCF High Estimate), representing an unrisked estimated NPV
for the Best Estimate net Predator gas resources of US$831.7
million.
SLR report that similar gas plays to the Moulouya Prospect are
commercial in the Rharb Basin where the discovery rate is
"remarkably high". An active hydrocarbon-generating system is
confirmed in Guercif for biogenic and thermal gas and is supported
by the presence of numerous credible seismic amplitude
anomalies.
SLR indicate that use of the 48" Maghreb-Europe gas pipeline
("MEG") to export gas is technically feasible and that there are no
existing capacity, market or technical reasons why Predator could
not utilise the MEG to commercialise any gas discovery in
Guercif.
The in-country gas market includes the potential to sell to
cement plants and local power generators. The Office National de
l'Electricité ("ONE") is encouraging private operators to build and
operate power plants to satisfy rising domestic demand and a number
of such plants are to be constructed along the MEG, including Oued
Al Mekhazine (2 x 400 MW capacity). Electricity transmission
capacity is to be raised by a further 2,100 MW to reflect
increasing demand.
Additional prospectivity is referenced by SLR, including an
updip appraisal of possible logged gas-bearing intervals in GRF-1.
SLR postulate undefined gross resources of 10 to 200 BCF for this
target.
SLR also refer to 9 prospective Triassic and Jurassic leads,
developed previously by ONHYM, with mid case recoverable volumes
stated by ONHYM to range from 18 to 366 million BOE. There is a
large surface oil seep around the TAF-1X well adjacent to one of
the Jurassic leads. Seismic reprocessing and new seismic
acquisition will be required to further evaluate and better define
the additional prospectivity.
The Company will provide further operational updates on progress
in Morocco as activities develop during 2019.
Paul Griffiths, CEO of Predator Oil & Gas Holdings Plc
said:
"This is another very positive step for Guercif. This third
party prospective resources audit by SLR validates the significant
volumetric and recoverable gas resources potential whilst
importantly indicating too that there is no significant impediment
to monetising discovered gas. The CPR also references additional
hydrocarbon potential over the entire Guercif area demonstrated by
multiple prospective leads in diverse geological settings in the
Miocene, Jurassic and Triassic. This will facilitate a rolling
drilling programme to create economies of scale in respect of costs
which could be expected to lead to sustained exploration activity
over several years. The CPR is therefore an important tool and
catalyst for attracting potential drilling partners necessary to
advance rapidly a multi-well drilling programme to fully evaluate
the large inventory of prospective leads developed in Guercif, as
now referenced independently by the CPR."
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
or contact:
Predator Oil & Gas Holdings Plc +44 (0) 1534 834
Sarah Cope Chairman 600
Paul Griffiths Chief Executive Officer Info@predatoroilandgas.com
Novum Securities Ltd (Broker)
Jon Belliss +44 (0) 207 399 9425
Follow us also on VOX Market https://www.voxmarkets.co.uk/
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 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 Pilot Enhanced Oil Recovery project using
locally-sourced carbon dioxide for injection into the oil
reservoirs ("C02 EOR"). Near-term expansion and growth potential is
focussed on upscaling the C02 EOR operations in the Inniss-Trinity
oil field and potential acquisitions of assets suitable for C02 EOR
development, subject to all necessary approvals.
In addition, Predator also owns and operates exploration and
appraisal assets in current licensing options offshore Ireland, for
which Successor Authorisations have been applied for, adjoining
Shell'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.
Predator is operator of the Guercif Petroleum Agreement onshore
Morocco which is initially prospective for Tertiary gas in
prospects less than 10 kilometres from the Maghreb gas
pipeline.
The Company has a highly experienced management team with a
proven track record in the oil and gas industry.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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