Trinidad/Morocco: Predator Oil & Gas announces operational update

• Snowcap-3 long-lead well inventory build progressing on track
•  Oil storage tanks (capacity 1,200 barrels) to move to Snowcap-3 production facilities site
•  Snowcap-3 production start-up focussed on Herrera #8 Sand with a potential initial pre-drill stabilised test rate of 500 bopd
•  Snowcap-3 estimated operating net-back US$52/brl, versus current US$31.9 for April net entitlement oil sales equivalent to 76 bopd
•  Oil storage allows Snowcap-2ST1 and Jacobin-1 well interventions and wax treatment pilot to proceed
• Independent Technical Resources Report for MOU-6 published
•  Positively impacts MOU-6 risk versus reward metrics to deter premature project dilution
•  MOU-6 well preparations accelerated
• Significant progress towards potential award of Corrib South successor authorisation
• Corrib South back on the table as a potential "High Impact" strategic asset

Predator Oil & Gas Holdings, the Jersey based Oil and Gas Company with producing hydrocarbon operations and exploration activity focussed on Trinidad and Morocco, has announced an operational update.

Trinidad

Snowcap-3 ('SC-3')

• SC-3 well inventory build for long-lead items progressing on schedule with delivery dates set by both in-country and overseas suppliers.
• Pre-drill logistics team in place to secure the drilling site to facilitate surveying for the  construction of the well pad and associated production facilities.
• Service Orders for well services being issued.
• Commercial negotiations for the preferred drilling rig  to align with the current window for drilling SC-3 are close to conclusion.
• Exact timing for the commencement of drilling operations to be announced closer to the current delivery dates being satisfied for all of the long-lead well inventory items that have been sourced from overseas, which are subject to freight transport logistics and customs clearance.
• SC-3 pre-drill logging and well testing programme is being finalised.
• Herrera #8 Sand targeted for production start-up based on a stabilised initial forecast flow rate of 500 bopd with a minimum production rate of 200 bopd to evaluate efficiency of oil storage capacity versus trucking logistics to the preferred sales point.
• 3 existing oil storage tanks with combined capacity of 1,200 barrels being moved to SC-3 well site to enable start-up production as early as possible following well testing.

Snowcap-2ST1 ("SC-2ST1") and Jacobin-1 well re-entries

• Sufficient oil storage capacity available to commence SC-2ST1  and Jacobin-1 operations prior to commencing the SC-3 well.
• SC-2ST1 increased bottom-hole reservoir pressure to 1845.7 psi to be evaluated first by swabbing operations to attempt to prepare the well for natural flow prior to pumping.
• Jacobin-1 has also provided encouragement for a well re-entry and wax treatment before conversion to pumping.
• Successful operations may potentially add initially 20 to 40 bopd for guidance purposes only, as the forecast is impossible to be determined accurately prior to the completion of operations.

April net oil sales entitlement under the Master Services Agreement ('MSA') for the Goudron, Bonasse, Inniss-Trinity and Icacos fields

• 2,289 barrels of net entitlement oil sold in April at a Heritage Fair Market Value sales price of US$ 83.338/brl.
• Equivalent to a realised operating profit net-back of US$31.9/brl after Heritage and Ministry licence costs and no exposure to field operating costs.
• 85.4% of the production is from Heritage Incremental Production Service Contracts, which have less favourable commercial terms relative to direct Ministry licences due to the application of additional royalties and First Tranche Oil at a fixed price of US$16/brl.

Short-term business development strategy

• Over the next 6  months focus is  on production start-up and cash flow from the Cory Moruga Exploration and Production Licence, which is a direct Ministry Licence.
• SC-3 operating net-back currently estimated pre-drill to be US$52/brl (versus US$31.9/brl for April sales oil using the same pricing parameters).  This is subject to revision post-drill.
• Initial SC-3  production estimate of 6,000 brls./month pre-drill (versus 2,289 brls for April existing production).
• Accelerated establishment of the pre-drill SC-3 production facilities in Trinidad creates opportunity for a stepwise uplift in cash flow  to potentially support reserves-based lending for MOU-6 in the event of a successful well test and a declaration of commerciality.

Morocco

Independent Technical Resources Report ('ITR') MOU-6

The ITR is a strategic document for updating the Company's business development strategy for Morocco.

The ITR is available at www.predatoroilandgas.com

Short-term business development strategy

• Risk versus reward metrics for the proposed MOU-6 well are enhanced by the ITR.
• Historical drilling and rigless testing issues addressed by new well design, mud weight strategy; drilling fluids chemistry and use of larger, imported perforating guns.
• Finalising partnering relationships pre-drill that involve significant equity dilution in the MOU-6 project is commercially no longer attractive due to the Company's new re-assessment of risk versus reward.
• A relatively low quantum of capital is required for a potential initial MOU-6 pilot CNG and/or micro-LNG "proof-of-concept" development. Valuations remain subject to drilling success, testing results, commerciality assessment, regulatory approvals and market conditions.
• 'Proof-of-concept' de-risking of the commercial model for gas monetisation would significantly enhance the potential value of unrisked P50 and P10 prospective and contingent gas resources.

MOU-6 well planning

• MOU-6 well inventory build for long-lead items will be completed at the beginning of August.
• Revised pre-drill strategies for well design and drilling mud chemistry completed and will ensure flexibility for potential testing and re-use of the proposed MOU-6 well.
• Environmental Impact Assessment is anticipated to be approved in July.
• MOU-6 will be drilled to +/- 950 metres.

 Ireland

Corrib South Licensing Option 16/26

• Focussed at corporate level on satisfying remaining financial requirements requested by the regulatory authorities to be submitted by 30 September 2026 to allow a recommendation  to be made on the status of the application for a successor authorisation.
• The Company is confident that it will satisfy the stated regulatory requirements, particularly considering the increased cashflow to be potentially established by the SC-3 well in Trinidad.
• Corrib South has been re-established as a potentially significant asset for the Company adjacent to the Corrib gas field. It could provide future much-needed gas storage for Ireland to assist with energy security and to prolong the life of the Corrib gas field infrastructure.
• For context Corrib South was retained by the developer of the Corrib gas field (Shell) as a Reserved Area Licence prior to exiting Ireland.

Paul Griffiths, Chief Executive Officer of Predator Oil & Gas Holdings Plc commented:

'Since 2021 the global oil and gas sector has faced unprecedented challenges generated by the demand to replace fossil fuels by renewable green energy to address legitimate climate change concerns. The rationale for the changeover was ill-conceived as it did not address energy security and the impact of energy price shocks on the cost-of-living during an inevitable transition period. This impacted investor sentiment and political expediency in Europe to delay and put in place regulatory hurdles to frustrate the development of oil and gas sector assets. Access to capital and finance needed for business development growth became restricted and more costly. "Swimming against the tide" would be an apt description for the oil and gas sector, particularly impacting smaller independents during this period leading to a contraction and near-elimination of the farmout market.

 Fast-forward to the past 12 months and energy security and the cost-of-living crisis has replaced the former political narrative as a result primarily of the Middle East wars. Very few pragmatic and fair-minded people would deny the importance of fossil fuel to sustain the Energy Transition and ameliorate the cost-of-living crisis by developing indigenous oil and gas resources.

The Company has survived this period of turbulence to be in a position to now 'swim-with-the-tide' .

The change in sentiment in  political,  financial and regulatory  circles is now being utilised by the Company to drive our operations forward in 2026 in a manner that was not previously possible.

We are very pleased with current progress given the unpredictable impact of the Middle East conflict on the global logistical supply chain. So far there has been no consequences for the Company. This window of opportunity must be exploited before the cycle of positive sentiment might yet turn again,  as politicians are fickle, depending on which way the votes blow!'

 1,200 barrels of oil storage capacity being moved to Snowcap-3 well site

Original announcement link

Source: Predator Oil & Gas