Predator Oil & Gas (PRD), the Jersey-based Oil and Gas Company with near-term hydrocarbon operations focussed on Morocco and Trinidad today announce its unaudited interim results for the six-month period ended 30 June 2024.

Financial highlights:

• Fully funded to satisfy all commitments for the next twelve months
• Preparing the organisational structure necessary to accelerate the transition to production and a possible future partial divestment and monetisation of discovered gas onshore Morocco
• Total comprehensive Loss for the 6 months period is £978,238 (£2,361,721 for the 6 months period ended 30 June 2023)
• Cash balance, at period end of £4,352,190 (2023 year end: £6,484,034)
• A further £1,186,155 (US$1,500,000) held as restricted cash
• £304,476 (before expenses) raised through the exercise of 5,221,203 broker warrants, 2,890,908 of the warrants exercisable at 5.5 pence per share; 1,780,412 of the warrants exercisable at 5.7 pence per share; 549,883 of the warrants exercisable at 8.0 pence per share
• No material shareholder dilution
• No debt
• Application dated 5 June 2024 to enter the First Exploration Period of the Guercif Petroleum Agreement submitted which on ratification will reduce the Company's firm regulatory financial commitments and work programmes
• Issued share capital 570,382,865 (31 December 2023: 565,161,662)

Operational highlights:

• Onshore Morocco initial conventional rigless testing programme successfully executed and preparations for next stage to evaluate Sandjet perforating technology performance progressing
• MOU-3 shallow higher pressure gas remapped with gross P50 and P10 gas-in-place of 37.75 and 53.81 BCF respectively - potentially a separate standalone CNG development project.
• Preparations to drill the MOU-5 well to test the large 187km2 Titanosaurus Jurassic structure have been progressed and refined based on new desktop seismic modelling of potential reservoirs which has increased gross gas-in-place estimates to 8.036 and 14.729 TCF - establishing a potential gas-to-power development option adjacent to the Maghreb Gas Pipeline
• Onshore Trinidad low-cost administrative office established and in-country operating capability being progressed
• Additional well intervention opportunities identified and being advanced in the context of economies of scale and enhancing near-term potential production growth through the application of wax treatments
• Independent Technical Report for Cory Moruga gives gross, following the acquisition of an additional 16.2% equity interest, Contingent and Prospective P50 and P10 resources of 14.31 and 21.41 million barrels respectively  
• Offshore Ireland the application for a successor authorisation for the Corrib South Licensing Option 16/26 has progressed to the final stages of satisfying GSRO conditions for its potential award and a farmin. Proposal has been received from a well-funded industry entity with downstream production

Post reporting date:

• On the 7 August 2024 the Company announced a rigless testing update and customs clearances on the 12 June and 2 August 2024 for the import of the Sandjet testing tools and the Baker Hughes logging and coiled tubing units respectively.
• On the 8 August 2024 the Company gave an update on preparations for the drilling of the high impact well MOU-5. Based on an updated Independent Technical Report, taking into account seismic modelling of the target Jurassic reservoir interval, gave gross P50 and P90 in-place gas of 8.036 and 14.729 TCF respectively.
• Based on the evidence of the presence of helium in the MOU-3 analysed gas sample from the Moulouya Fan, the helium potential of the MOU-5 structure and surrounding area was identified for the first time for further evaluation and follow up through the drilling of MOU-5.
• The granting of entry into the First Extension Period of the Guercif Petroleum Agreement was confirmed.

Operational overview

Morocco

The Phase 1 rigless testing programme was designed to confirm potential formation damage caused by heavy drilling muds used whilst drilling and to estimate the minimum depth of penetration of drilling mud into the potential reservoir formations.

This information was an important input for designing the Phase 2 Sandjet rigless testing programme, including perforating parameters, and for evaluating additional potential reservoir intervals interpreted by NuTech but where conventional wireline logs were potentially impacted by deep invasion of drilling mud into these intervals.

In order to carry out Phase 1 rigless testing, conventional 111/16" perforating guns, being the only option available at the time to allow Phase 1 rigless testing to commence before 5 February 2024 and the end of the extension of the Initial Period of the Guercif Petroleum Agreement facilitated by Amendment #3, were used.

It was recognised that the perforating guns were likely to be under-sized but a third party analysis indicated a maximum 12" penetration into the reservoir formation versus their interpreted zone of formation damage for the TGB-2 Sand, for example, in MOU-1 of 8".

Therefore, it was assessed that the Phase 1 rigless testing programme would at least establish a minimum extent for formation damage around the wellbore of 8 inches based on the above third party information. This would assist in designing more appropriate Sandjet perforating parameters.

Operations summary
Phase 1 rigless testing operations commenced on 10 February 2024 after arrival at the well site of the explosives required for the perforating guns and allowing for some adverse weather conditions which prevented crane work.

All four zones in MOU-1 and MOU-3 to be tested were perforated and operations were completed on 19 February 2024 with the crews and equipment being demobilised. Operations took 10 days versus the pre-testing forecast of up to 14 days.

Results
For all four zones tested the under-sized 111/16" perforating guns failed to penetrate beyond the zone of formation damage caused by the necessity to use heavy drilling muds whilst drilling.

Gas analysis of isotube gas samples from MOU-3
Seven gas samples collected in isotubes in MOU-3 whilst drilling at measured depths of 446, 508, 555, 750, 817, 846 and 1395 metres were analysed by Applied Petroleum Technology (UK) Ltd. ("APT") in their Oslo laboratory. Gas composition is in the range 98.04 to 99.57% methane, making it ideal for a Compressed Natural Gas development with minimum processing. Isotope analysis indicates the gas is biogenic in origin.

Planning work continued throughout the period to scope out the parameters for Phase 2 rigless testing using Sandjet. Sandjet testing tools were imported into Morocco on 12 June 2024.

The primary objective of the Sandjet rigless testing programme is to effectively reach beyond the zone of formation damage caused by the requirement for over-balanced drilling during drill operations, which prevented the well from flowing gas.

Remapping of the shallow, 11-metre thick, higher pressure, gas reservoir between 339 and 350 metres MD KB in MOU-3 that was not logged resulted in an upgrade of gas-in-place to gross P50 and P10 estimates of 37.75 and 53.81 BCF respectively.

Preparation for the drilling of the MOU-5 structure continued. The well location was moved 277 metres to the northwest of the original location to avoid a surface irrigation feature and water well that supported local farmers. This resulted in a slightly deviated well plan to reach the primary target at the proposed location on 2D seismic line 03-MIL-06. An adjustment to the well inventory requirements was planned for.

Seismic modelling with the creation of seismic inversions identified multiple low impedance zones in the primary Lower Jurassic target in the MOU-5 structure. This was interpreted as potentially indicating thick and porous reservoir development. Reservoir development is forecast to occur between 800 and 1,000 metres MD KB and the exploration well is not expected to take longer than 12 to 14 days to drill.

Upgraded gas-in-place based on the new reservoir potential gave gross P50 and P90 estimates of 8.036 and 14.729 TCF respectively.

Trinidad

Following the Sale and Purchase Agreement ("SPA") being executed between T-Rex Resources Trinidad, a wholly owned subsidiary of Predator Oil & Gas Holdings Plc, and  the current third-party Trinidad partner for the assignment of a 16.2% interest in the Cory Moruga "E" Block, the Ministry of Energy and Energy Industries consent was obtained in August 2024, the Company has continued to focus on developing a portfolio of well workovers in the Cory Moruga Licence. Work has included site restoration and maintenance of access roads and seeking quotes for in-country well services. STOW certification has been advanced to allow T-Rex Trinidad Limited to re-establish its status as a field operator.

A new well for workover, additional to Snowcap-1 and Snowcap-2ST1 has been identified. This well is suitable for a pilot wax treatment of several oil-bearing reservoirs within a gross interval 2,500 feet thick.

A review of 3D seismic data indicates that Jacobin-1 is a separate structural compartment not drained by the adjacent and producing Moruga West oil field. A recent fluid level measurement in the well confirms that the reservoirs are close to virgin reservoir pressure, indicating that initial well test rates should be close to those for the five correlatable reservoirs in the adjoining Moruga West field - one of which, the Herrera #3 Sand, in MW-75 had an initial flow rate of 60 bopd and a recovery of 103,600 barrels of oil.

A target initial production rate in the guidance range of 50 to 200 bopd is realistic, with the higher end dependent upon the success of an effective wax treatment. Utilising the significant tax losses in T-Rex improves project economics by significantly reducing Petroleum Profit Tax.

An evaluation of the legacy production test data for Snowcap-1, inherited with the acquisition of T-Rex, is in agreement with potential recoverable oil estimates from the Company's new in-house 3D seismic interpretation and new reservoir maps. There is a strong expectation that production can be restored at former levels following remedial downhole work.

An Independent Technical Report for Cory Moruga was commissioned and gives gross, following the acquisition of an additional 16.2% equity interest, Contingent and Prospective P50 and P10 resources of 14.31 and 21.41 million barrels respectively. 

Ireland

No activities were carried out in respect of Corrib South Licensing Option 16/26.

Company strategy is to focus on satisfying the financial criteria determined by the GSRO within the DECC to secure the award of a successor authorisation. Maintaining the dialogue with the preferred farminee is also an important consideration in terms of enhancing the ability to satisfy the financial criteria required by the application process with the GSRO.

 KeyFacts Energy: Predator Oil & Gas Morocco country profile   l   Predator Oil & Gas Trinidad and Tobago country profile  l   Predator Oil & Gas Ireland country profile