Predator Oil & Gas Holdings Plc
("Predator" or the "Company" and together with its subsidiaries "the Group")
Irish Offshore Operators' Association Statement
Implications for Indigenous Gas at Ram Head, Celtic Sea, Ireland
Highlights
· Pragmatic approach to indigenous gas exploration and development
· Discovered gas at Ram Head is a good fit with current strategic objectives
· Mid to Best Estimate net Prospective Gas Resources of 508 to 1,370 BCF
· Well-placed with respect to gas infrastructure
Predator Oil & Gas Holdings Plc (PRD), the Jersey-based Oil and Gas Company, has responsibly reflected upon the statement made by the Irish Offshore Operators' Association ('IOOA') on 5 July 2019 regarding the decision by the Government of Ireland not to proceed with the Climate Emergency Bill. The full text of the statement can be found using the following link https://www.iooa.ie/government-takes-important-step-to-ensure-energy-security/
Background
Predator's management, who have 20 years' experience exploring for, appraising and producing gas offshore Ireland, has been advocating the case for indigenous gas development since 2016 focussing on four critical issues:
· Security of Energy Supply in an increasingly volatile Brexit landscape
· Transition to a lower-carbon economy by pragmatic means using indigenous gas, which has a lower carbon footprint, to replace imported coal
· Maintaining the potential for tax revenues from gas developments to support the investment needed in expanding renewable energy
· Ensuring energy remains affordable and accessible to all
Predator remains fully committed to Ireland and is encouraged by the pragmatic approach now being adopted.
Predator C02 Footprint Strategy
Predator only operates and works closely with environmental agencies and regulators in countries where there is a commitment to reducing CO2 emissions.
In this respect the Company is focussed on exploring for gas in Morocco, which has a high dependency on coal for electricity generation, and Trinidad, where the Company is addressing the potential for C02 sequestration as part of our near-term programme of operations. CO2 from Trinidad's ammonia plants is currently vented into the atmosphere.
Recent Ram Head Competent Person's Report ("CPR")
With this new political development our focus on the gas discovered in 1984 by Marathon, 40 kilometres east of the Kinsale platforms at Ram Head in the Celtic Sea, becomes of even greater significance. Unlike the majority of new gas opportunities around Ireland the Ram Head gas has already been discovered and is now a strategic fit with stated energy policy.
Mid and Best Estimates Prospective Gas Resources net to the Company of 508 to 1,370 BCF respectively have been previously reported in the Company's published CPR.
The decision by the Government of Ireland not to proceed with the Climate Emergency Bill may be the catalyst for investment decisions regarding the development of proven gas in the Celtic Sea.
Next Step
Seismic reprocessing is being undertaken to potentially improve the definition of the Ram Head gas structure and the fault compartment tested by the 49/19-1 Marathon discovery well.
A further operational update will be given upon completion of the seismic reprocessing.
Paul Griffiths, Chief Executive of Predator, commented:
" We are encouraged by the pragmatic approach being adopted with respect to the importance of developing indigenous gas offshore Ireland. Ram Head contains two gas discoveries and lies in an area of the Celtic Sea that has a long tradition of gas production and was the catalyst for the development of the gas industry in Ireland. The Ram Head prize is potentially large enough to attract interest from substantive parties. Conditions are right in Ireland now to re-approach some parties."
Enquiries:
Predator Oil & Gas Holdings plc Paul Griffiths, Chief Executive Officer Sarah Cope, Non-Executive Chairman |
Tel: +44 (0)1534 834600 |
Brandon Hill Capital Jonathan Evans / Oliver Stansfield |
Tel: +44 (0)20 3463 5000 |
This announcement contains inside information for the purposes of Article 7 of the Regulation (EU) No 596/2014 on market abuse
Notes to Editors:
Predator is an oil and gas exploration company with the objective of participating with FRAM Exploration Trinidad Ltd. in further developing the remaining oil reserves in the producing Inniss Trinity oil field onshore Trinidad, primarily through the application of C02 EOR technology. Potential for cash flow exists by executing a Pilot Enhanced Oil Recovery project using locally-sourced carbon dioxide for injection into the oil reservoirs ("C02 EOR"). Near-term expansion and growth potential is focussed on upscaling the C02 EOR operations in the Inniss-Trinity oil field and potential acquisitions of assets suitable for C02 EOR development, subject to all necessary approvals.
In addition, Predator also owns and operates exploration and appraisal assets in current licensing options offshore Ireland, for which Successor Authorisations have been applied for, adjoining Shell's Corrib gas field in the Slyne Basin on the Atlantic Margin and east of the Kinsale gas field and Barryroe oil field in the Celtic Sea. A Successor Authorisation has been granted for the Celtic Sea asset whilst the result of an application for a Frontier Exploration Licence over the Slyne Basin exploration asset is is pending.
Predator is operator of the Guercif Petroleum Agreement onshore Morocco which is initially prospective for Tertiary gas in prospects less than 10 kilometres from the Maghreb gas pipeline.
The Company has a highly experienced management team with a proven track record in the oil and gas industry.
