Predator Oil and Gas Announces Operations Update

Source: www.gulfoilandgas.com 3/17/2022, Location: Africa

- Secure option on rig to drill within a definitive time window
- Planned construction of two well pads
- Competitiveness in accessing well services and materials enhanced
- Second gas target identified for first well
- Exploration target for Jurassic gas being matured
- Quote received and reviewed for MOU-1 well testing

Predator Oil & Gas Holdings Plc (PRD), the Jersey-based Oil and Gas Company with operations in Morocco, Ireland and Trinidad focussed on diversification and security of European energy supply in the context of the Energy Transition and based on gas as a sustainable lower carbon fuel, is pleased to announce that it has conditionally placed 11,500,000 new ordinary shares of no par value in the Company (the "Placing Shares") at a placing price of 9 pence each (the "Placing Price") to raise 1.035 million before expenses (the "Placing").

The Placing was significantly oversubscribed and utilises 5,000,000 million shares of the Company's existing headroom shares ("First Tranche Shares") and 6,500,000 of the Company's additional available headroom shares after 27 March 2022 ("Second Tranche Shares") under the Financial Conduct Authority restrictions for companies on the Official List (standard listing segment) of the London Stock Exchange's main market for listed securities.

Lonny Baumgardner, an executive director of the Company, has participated in the Placing for Ordinary Shares for a value of 50,000 at the Placing Price. This participation is equivalent to 4.83% of the Placing.

Novum Securities are acting as sole placing agents to the Company.

Use of Proceeds

The Company is primarily intent in the near-term on expanding and executing its planned 2022 drilling operations in Morocco as issues relating to security and cost of gas supply are set to be critical factors during the Energy Transition influencing the ability to deliver affordable energy.

The strengthening of the Company's financial resources facilitates the exercise of an option to drill using the Star Valley Rig 101 within a definitive time window following all regulatory, environmental and partner approvals. A rig inspection will be carried out shortly by the Company. The option covers drilling up to three wells in 2022.

Civil works to construct the MOU-4 and MOU-5 well pads will commence following receipt of all outstanding regulatory, environmental and partner approvals.

Rising costs of materials and services impacted by current tensions in Eastern Europe dictate that it is prudent to allow for cost inflation to maintain competitiveness in seeking quotes for well services and equipment and for maintaining aggressive drilling timelines.

MOU-5 is now being prioritised ahead of MOU-4 for the first well in the drilling programme. Following desk-top modelling of seismic response to gas in MOU-1, two shallower gas targets additional to the primary "MOU-4 Fan" appraisal target have been identified at the MOU-5 well location. The shallowest of these targets had strong formation gas shows in MOU-1 (dry gas) and was penetrated in MSD-1 where good quality reservoir was logged.

The MOU-NE prospective lead is being matured as a potential third well in the planned drilling programme. 2D seismic reprocessing over this feature will be completed by the end of May 2022. The primary target following further desk-top studies is now anticipated to be a Lower Jurassic carbonate platform build-up with potential for leached porosity development covering potentially up to 100 sq. km., albeit within an area that lacks extensive seismic coverage. Dry gas shows were encountered in TFR-1X at the top of this interval. MOU-NE will potentially test the play concept some 1500+ metres higher than the TFR-1X structure in an area favourably located for gas charge from the MOU-1 Tertiary basin. It represents a high-risk target but an opportunity to test for Jurassic gas close to infrastructure at a drilling depth of less than 1,450 metres TVD KB.

Additional funding allows the Company to further progress its: FSRU LNG import projects for Ireland and, potentially, Morocco; set-up the next CO2 EOR project in Trinidad; and further develop its concept to seek synergies for green hydrogen and natural gas hybrid developments.

Existing working capital is sufficient to meet the Company's existing commitments and corporate overheads in 2022, including the testing of MOU-1 which will be synchronised with mobilising the well services and equipment for MOU-5 to reduce mobilisation and demobilisation costs. A quote for testing has been received from Schlumberger and has been reviewed.


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