Predator Oil & Gas, the Jersey based Oil and Gas Company with near-term operations focussed on Morocco and Trinidad, has provided an operations update and details of its 2024 forward work programme.
Highlights
- Phase 1 Guercif rigless well testing scheduled to commence before 25 January with Phase 2 using Sandjet scheduled for February/March
- Site visit to Cory Moruga scheduled for 22 - 26 January to begin planning for well workovers
- Cory Moruga Independent Technical Report gives P50 and P90 Contingent and Prospective gross recoverable resources of 14.31 and 21.41 million barrels respectively
- H1 2024 well workovers forecast to generate gross net operating profit of US$ 3.1 million in 12 months from H2 2024 to H1 2025
- Cory Moruga Field Development Plan for P90 Contingent and Prospective gross recoverable resources of 9.13 million barrels gives gross US$202.12 million undiscounted net operating profit (NPV@10% US$85.14 million with IRR 240.9%)
- Well planning for discretionary high impact Jurassic well commenced for April/May drilling
- Fully funded for all 2024 firm commitments
- Potential for gas monetisation and Cory Moruga production revenues to fund discretionary drilling
- Low corporate and operating overhead maintained despite increase in activity
Paul Griffiths, Executive Chairman of Predator, commented:
'I am pleased to confirm that 2024 is set to be the busiest year for activity since the Company was incorporated.
The addition of a substantial, near virgin, field appraisal and development asset onshore Trinidad provides the Company with the potential to generate strongly positive cashflows in 2024 to contribute organically towards further development of its assets.
The milestones to be met for potential monetisation of gas in Morocco, subject to the results of the Phase 1 rigless testing, are now clearly defined from a regulatory, technical, marketing and operational perspective. The objective over the last six months since the completion of the 2023 drilling programme has always been focussed on ensuring that all the elements for monetising gas are put in place to support an application for an Exploitation Concession.
Management's appetite for efficiently drilling within pre-drill budgets moderate risk but high impact wells that potentially generate a multiple uplift on drilling costs remains strong and aligned with current market sentiment. For this reason we are also focussed on accelerating the drilling of the Jurassic target in Morocco and a high impact appraisal well in Cory Moruga at a later date. The Company is in a position of strength where it can dictate the timing of exercising high impact discretionary drilling opportunities either through eventual Cory Moruga production revenues or through an accelerated process triggered by potential early partial monetisation of gas assets, which are subject to a successful rigless testing programme.
The Company is however also able to fund its firm 2024 commitments whilst maintaining some discretionary cash on the balance sheet without considering potential production revenues from Cory Moruga in 2024.
Funding the CNG development can be achieved using discretionary cash on the balance sheet combined with a leasing arrangement for CNG trailers and equipment. For this reason it has been important to develop the scale of potential CNG gas sales in Guercif, in a success case, to provide greater leverage to negotiate leasing agreements with greater materiality for potential service providers.
The CNG development schedule will be updated after the Phase 1 rigless testing results.
The Company has maintained strict oversight over its operating and commercial overheads and despite the exponential increase in activity we will continue to practice restraint when it comes to controlling costs.'
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Source: Predator Oil & Gas
