Memorandum of Understanding with Afriquia Gaz S.A.

Predator Oil & Gas Holdings PLC

30 November 2023

 

FOR IMMEDIATE RELEASE

30 November 2023

               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")

Memorandum of Understanding in relation to Gas Sales

   and Collaboration Agreements with Afriquia Gaz S.A.

                                                        Highlights

·    Memorandum of Understanding signed with Afriquia Gaz S.A.

·    12-month exclusivity period to negotiate legally binding Gas Sales Agreement

·    CNG to be purchased  at the point of delivery of the gas to the CNG trailers

·    Downstream transport and sale of gas to end user will be for Afriquia Gaz S.A.

·    MOU facilitates increasing gas sales to up to 50 million cf/d

Predator Oil & Gas Holdings Plc (LSE: PRD), the Jersey based Oil and Gas Company with near-term gas operations focussed on Morocco, is pleased to announce the signing of a Memorandum of Understanding in relation to Gas Sales and Collaboration Agreements (the "MOU") with Afriquia Gaz S.A. ("Afriquia" and together the "Parties").

Duration of the MOU is for one year commencing 27 November 2023.

During the term of the MOU the Parties shall discuss in good faith and endeavour to agree the terms and conditions of a legally binding gas sales agreement ("GSA") between the Parties whereby Predator agrees to sell and Afriquia to off-take and purchase the CNG corresponding to Predator's participating interest in the Guercif Licence.

Afriquia will have a period of exclusivity during the duration of the MOU to negotiate the terms and conditions of a mutually acceptable GSA with Predator. 

Subject to negotiations and terms and conditions to be mutually agreed between the Parties the GSA is anticipated to include the following scoping terms:

·    Afriquia to purchase gas at the point of delivery of the gas to the CNG trailers;

·    Predator shall fund and operate the CNG development and production facilities;

·    Investment in CNG trailers shall either be through a purchase arrangement or through a leasing contract which shall be negotiated and agreed between the Parties and will be dependent on whether Predator or Afriquia are the providers of the CNG trailers;

·    Take-or-Pay provisions (and associated make-up and carry forward provisions) and fixed term contracts with an agreed Purchase Price for 8 to 10 years;

·    It is anticipated that any increases in the initial contracted daily deliveries shall be phased over 3 years and shall be subject to an absolute cap of 1.4 million cubic metres per day (equivalent to 50 million cf/day) and the results of the Guercif Rigless Testing Programme and 2024 Drilling Programme.

For information on Afriquia Gaz S.A.

https://www.afriquiagaz.com/

Paul Griffiths, Executive Chairman of Predator, commented:

"We are pleased to have agreed the MOU with Afriquia Gaz S.A. in relation to entering into substantive discussions regarding a Gas Sales Agreement upon completion of the rigless testing programme at Guercif.

This is the first MOU of its kind in Morocco to address specifically the sale of CNG at a scale of up to potentially 50 million cubic feet of gas per day over time.

The MOU ensures that we have the solid foundation to penetrate the downstream Moroccan industrial market. It allows us to focus on our core upstream strengths which are the identification and maturing of exploration assets where success is aligned with capturing the greatest uplift for shareholders in the hydrocarbon value chain for prudent levels of investment."

For further information visit www.predatoroilandgas.com

Follow the Company on twitter @PredatorOilGas.

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 Paul Griffiths                Executive Chairman Lonny Baumgardner    Managing Director	Tel: [phone] [e-mail]
Novum Securities Limited David Coffman / Jon Belliss Fox-Davies Capital Jerry Keen	Tel: [phone] Tel   [phone]  [e-mail]
Flagstaff Strategic and Investor Communications Tim Thompson  Mark Edwards Fergus Mellon	Tel: [phone]  [e-mail]

Notes to Editors:  

Predator is operator of the Guercif Petroleum Agreement onshore Morocco which is prospective for Tertiary gas less than 10 kilometres from the Maghreb gas pipeline.  The MOU-1 well drilled in 2021 and the MOU-3 well drilled in 2023 have been completed for rigless testing in 2024. Focus is on supplying compressed natural gas to the Moroccan industrial market. Further drilling activity is being progressed to evaluate Jurassic prospects.

Predator is seeking to apply CO2 EOR techniques onshore Trinidad which have the advantage of  sequestrating anthropogenic carbon dioxide. Acquisition opportunities are also being progressed which are compatible with this strategy.

Predator 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 decommissioned Kinsale gas field in the Celtic Sea. 

Predator has developed a Floating Storage and Regasification Project ("FSRUP") for the import of LNG and its regassification for Ireland and is also developing gas storage concepts to address security of gas supply and volatility in gas prices during times of peak gas demand.

The Company has a highly experienced management team with a proven track record in successfully executing operations in the oil and gas sector.

 

END