Client NewsPredator Oil & Gas Holdings PLC: Update on Acquisition of Cory Moruga, future EOR collaboration and settlement agreement with Challenger Energy Group Plc
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 an update that, further to entry into a binding term sheet with Challenger Energy Group PLC and relevant subsidiary entities (“CEG”) as announced on 19 December 2022 (“the Transaction”), the Company has now completed all confirmatory due diligence and the Company and CEG have subsequently entered into fully termed long-form legal documentation.
The terms remain unchanged from those previously announced on 19 December 2022, being:
· The Company will acquire 100% of the issued share capital of T-Rex Trinidad Limited (“T-Rex”), an indirectly wholly owned subsidiary of CEG that holds CEG’s 83.8% interest in, and operatorship of, the Cory Moruga licence;
· CEG will retain the option in the future to repurchase 25% of Predator’s share in T-Rex on an agreed basis;
· Predator and CEG have established a collaboration in relation to CO2 EOR activities and projects in other areas in Trinidad; and
· the Company and CEG have agreed to a mutual settlement and discharge of all disputes and claims in relation to the Inniss-Trinity CO2 EOR pilot project.
Completion of the Transaction is conditional on consent of the Trinidadian Ministry of Energy and Energy Industries (“MEEI”) to a revised work programme for the Cory Moruga licence proposed by the Company, as well as agreement of MEEI to a revision of future fees for the Cory Moruga licence and a settlement / cancellation of past claimed dues pertaining to the Cory Moruga licence. Completion will occur 7 days after satisfaction of this condition. The parties have agreed to work together to secure the required consents and agreements with MEEI and thus achieve completion as soon as reasonably practicable on or before 30 May 2023, with a long stop date of 31 August 2023.
Competent Persons Report
Following receipt of extensive technical data from CEG and the completion of the Company’s more in depth in-house technical due diligence, including an analysis of the 3D seismic data with integration of past wells drilled on the Cory Moruga Licence, the Company has updated the material available for a Competent Persons Report (“CPR”) and expects to have this completed well in advance of the required MEEI regulatory consents and Completion.
Paul Griffiths, Executive Chairman of Predator Oil & Gas Holdings Plc commented:
“We are delighted to have had the opportunity to evaluate the Cory Moruga technical database and are extremely upbeat about the opportunity for unrealised potential in Cory Moruga, both for conventional appraisal and production and for the application of our CO2 EOR expertise. Cory Moruga is a near-virgin field unlike many of Trinidad’s onshore oil fields. As a result it is an excellent candidate for miscible CO2 EOR projects.
The CPR will be important for independently validating these potential resources.”
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