- Guercif MOU-1 well pad construction programmed for April 2021
- AT-5X being prepared for additional CO2 injection
- Encouraging swab tests and investigative results for AT-7, AT-8 and AT-10
Predator Oil & Gas Holdings Plc (Predator), the Jersey-based Oil and Gas Company with operations in Trinidad, Morocco and Ireland, announces that preparations for drilling MOU-1 in the Guercif licence onshore Morocco have begun and that further progress has been made on implementing the Company's forward work programme for the Pilot CO2 EOR Project ("Pilot CO2 EOR") in the Inniss-Trinity field onshore Trinidad.
Guercif MOU-1 drilling programme
- Operational planning for the MOU-1 well in the Guercif Petroleum Agreement area has commenced and is on schedule.
- The MOU-1 well pad construction is being prepared for April 2021.
- The drilling and well engineering program is being reviewed internally before release for the purposes of third party audit and any recommended modifications.
Inniss-Trinity CO2 EOR
- Swab tests and investigation of two of the four wells originally selected to evaluate well condition and, if suitable, return to production have been completed. A third well, not in the original program, was added to the investigative work.
- All three wells recovered oil during swabbing operations (approximately 10 barrels in the recovered fluid), having previously only produced water. Fluid levels in the wells have risen in response to CO2 injection at AT-5X. The encouraging results facilitates moving to the next stage to reactivate at least two of these wells for production.
- Swab tests and investigations confirm potential for realising pre-injection desktop production plateau forecasts in the range 243 -547 bopd from Herrera #2 Sand
- Three further wells will be swabbed and investigated as soon as well services are released from other work
- AT-5X is being prepared for further CO2 injection.
The addition of the Herrera #2 Sand perforating opportunity in a further well will create an inventory of up to seven production wells versus only three wells used for the forecast production profile in the pre-Piot CO2 EOR Project Plan submitted to the Ministry of Energy and Energy Industries.
During the period from 15 January 2021 to 10 February 2021 WTI oil price has risen from US$ 53.02/brl to US$58.25/brl.
- Complete swab investigations of remaining three wells
- Further continuous CO2 injection at AT-5X
- Continue enhanced production from existing production wells
- Reactivate two of the seven available wells to add CO2 EOR production
- Determine increase in incremental oil flow rates over one month of CO2 injection
Offshore Ireland - Floating Storage and Regasification Unit ("FSRU") and LNG
The Company remains focussed on providing a niche solution to near-term security of energy supply for Ireland during a transition to a dominantly renewable source of energy.
In this context it was reported on the 6 February 2021 that technical problems had forced the shutdown of a key electricity generator (capacity 445 megawatts) until the end of June 2021. On average, gas-fired power plants meet almost 60% of Irish power demand. The shutdown coupled with cold weather on 6 January 2021 and low wind speeds, which cut off most renewable generators, resulted in "amber warnings" where there is enough power to meet demand but where reserve back-up power is critically low.
Nothing better illustrates the security of energy supply issue and the requirement for the near-term solution being proposed by the Company.
On 19 February 2020 it was reported that Ireland was placed 154th on global ranking of 180 countries for sustainability and delivering on emissions targets.
Balancing the requirement to improve its global sustainability and emissions ranking with preserving near-term security of energy supply involves an inclusive, pragmatic and diverse approach.
The Warrant Instrument between Novum Securities Ltd and Predator Oil & Gas Holdings plc (the Company) dated 15 February 2019 granting the right to subscribe in cash for 2,000,000 ordinary shares exercisable at a price per share equal to the subscription price (12p per share) is being amended to allow the exercise date of the warrants to be extended by one year to the third anniversary of the date of the Warrant Instrument. This is in recognition of the fact that COVID-19 had delayed the execution of the Guercif drilling programme by one year.
Similarly, the Warrant Instrument between Novum Securities Ltd and Optiva Securities Ltd and Predator Oil & Gas Holdings plc (the Company) dated 24 May 2018 granting the right to subscribe in cash for 2,031,248 and 160,714 ordinary shares respectively exercisable at a price per share equal to the subscription price (2.8p per share) is being amended to allow the exercise date of the warrants to be extended by one year to the third anniversary of the date of the Warrant Instrument. This is also in recognition of the fact that COVID-19 has played a part in extending the Company's original timelines for executing some of its projects.
These existing warrants have already previously been factored into the fully diluted share capital of the Company.
Paul Griffiths, CEO of Predator Oil & Gas Holdings Plc commented:
"We continue to make solid progress with the Company's CO2 EOR project onshore Trinidad at Inniss-Trinity. Latest results are very encouraging and support the impact CO2 is having in gradually enhancing oil production. Much of the hard work has now been completed and the next challenge is to scale up the injected volumes of CO2 and resulting enhanced oil production to attain the optimum production profile achievable for the AT-4 Block. In Morocco we are excited to be in a position to execute the drilling programme as previously announced. Perseverance in Ireland based on the Company's innovative FSRU LNG concept is paying off as issues regarding security of energy supply have now been crystallised in real terms by recent events. Despite COVID-19 we have continued to make substantive progress, whilst maintaining a sensible balance between risk - reward, and through deploying working capital judiciously, but to maximum effect, over diverse yet equally material projects. "