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: +44 (0) 1534 834 600
Dr. Stephen Staley Non-executive Chairman Info@predatoroilandgas.com
Paul Griffiths Chief Executive Officer
Novum Securities Limited Tel: +44 (0) 207 399 9425
Jon Belliss
Optiva Securities Limited Tel: +44 (0) 203 137 1902
Christian Dennis
Flagstaff Strategic and Investor Communications Tel: +44 (0) 207 129 1474
Tim Thompson predator@flagstaffcomms.com
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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