Extension to Licencing Option 16/30 (Ram Head)

RNS Number : 6849V

Predator Oil & Gas Holdings PLC

10 April 2019

 

10 April 2019

Predator Oil & Gas Holdings Plc

("Predator" or the "Company" and together with its subsidiaries "the Group")

Extension to the Term of Licensing Option 16/30 ("Ram Head")

Highlights

·     Licensing Option 16/30 extended to 30 November 2019

·     Updated Competent Person's Report ("CPR") commissioned to assess and validate development concept

·     Previous CPR (2018) Best Estimate and High Estimate Prospective Gas resources net to the Company of 508 and 1,370 BCF respectively

·     Scoping initial production rate 400 mm cfgpd to recover 1 TCF of gross gas in 11 years

Predator Oil & Gas Holdings Plc (PRD), the Jersey-based Oil and Gas Company, is pleased to announce today its acceptance of a one year extension of the term of Licensing Option 16/30 ("LO 16/30") to 30 November 2019 subject to the carrying out of the work programme agreed with the  Department of Communications, Climate Action and Environment, the conditions that are attached to Licensing Option 16/30 and the Licensing Terms for Offshore Oil and Gas Exploration and Development and Production 2007 respectively.

A decision by the Company to proceed to an application for a follow-on Exploration Licence as provided for under the terms of the Licensing Option will be made on or before 60 days prior to the end of the Licensing Option.

LO 16/30 is operated by Predator Oil and Gas Ventures Ltd. (POGVL 50%), a wholly-owned Predator Oil & Gas Holdings Plc subsidiary, on behalf of its partner Theseus Ltd. ("Theseus" 50%).

The work programme agreed with the Department of Communications, Climate Action and Environment includes inter alia the purchase and reprocessing of existing 2D seismic data and ongoing desk-top studies, principally focused on re-evaluating the Marathon 49/19-1 gas discovery made in 1984 by applying modern technology, new development concepts and an understanding of the future requirements for gas in Ireland.

An updated Competent Person's Report ("CPR") has been commissioned to incorporate the Company's most recent independent reservoir engineering studies; development options, based on landing gas at the current Inch landfall for Kinsale gas in County Cork; and gas market assessment. The previous CPR (2018) gave Best Estimate and High Estimate Prospective Gas Resources net to the Company of 508 and 1,370 BCF respectively

The updated CPR will be released within the next few weeks and will represent the first such independent analysis of the development potential of the Ram Head gas structure based on the Company's scoping 10 vertical well development concept; initial field production rate projection of 400 mm cfgpd; and forecast gas recovery of over 1 TCF of gross gas in 11 years from production start-up.

Paul Griffiths, Chief Executive of Predator, commented:

" We are extremely grateful for the award of the extension to LO 16/30. We consider the 49/19-1 gas discovery to potentially represent the largest undeveloped gas discovery offshore Ireland. It is located in the shallow water of the Celtic Sea, where there has been a long history of commercial gas production that facilitated the development of the gas industry and network in Ireland and County Cork in particular. Gas is an absolutely vital ingredient in the energy mix in the near-term with respect to reducing C02 emissions, by lowering the dependence on other less environmentally friendly fuels; preserving security of energy supply at a time of increased uncertainty; and contributing to sustaining the economic equilibrium and stability necessary to help generate the investment quantums required for the development of alternative sources of renewable energy. The upcoming CPR is an important milestone to independently validate the potential of Ram Head to become a real "game-changer" and to provide the catalyst for further progress." 

This announcement contains inside information for the purposes of Article 7 of the Regulation (EU) No 596/2014 on market abuse

  Enquiries:

Predator Oil & Gas Holdings Plc Paul Griffiths, Chief Executive Officer Sarah Cope, Non-Executive Chairman	Tel: [phone]
Novum Securities Limited Broker Jon Belliss	Tel: [phone]

Notes to Editors:

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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.

 

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