Highlights
- MOU-5 will test effectiveness of a potential He charge and retention.
- Potential in-place helium of 104.31 to 598.88 BCF
- Fully funded for all commitments
Predator Oil & Gas Holdings Plc (PRD), the Jersey-based Oil and Gas Company with near-term hydrocarbon operations focussed on Morocco and Trinidad is pleased to announce the completion of an independent report (the "Report") on Helium ("He") potential by ScorpionGeoscience Limited.
Report Conclusions
The potential conventional prospective gross recoverable gas resources for the primary reservoir target in MOU-5 were previously reported as being 5.916 TCF (P50 upside case), as announced on 8 August 2024.
Potential gross estimates of in-place He for the P50 upside case are 104.31 BCF based on a global averaged scenario of 1.298% He and 598.88 BCF for the P10 upside case based on a global averaged scenario of 4.066% He.
Sources of information
The report draws on global analogues from a diverse range of available published geological settings to investigate the distribution and scale of naturally occurring He resources and seeks to determine to what extent the MOU-5 structure in Guercif could potentially yield a commercial He discovery.
Examples quoted include the supergiant Hassi R'Mel gas field in Algeria to the east of Guercif and known to contain helium as a byproduct of methane gas production; and the Hugoton field complex in central USA.
The geological setting of Guercif means it is potentially possible He could be sourced from crystalline basement (Tanzanian analogue), granitic intrusions (Corsican analogue), or radiogenic volcaniclastic sediments (Hugoton analogue).
MOU-5 structure
The MOU-5 structure has several potential migration pathways (fractures and faults); potential reservoirs (porous limestones) sealed by impermeable rocks; and adequate trapping in the form of a large structural closure.
MOU-5 will test the effectiveness of a potential He charge and retention.
Other considerations
Extracting helium from natural gas requires energy to cool the gas therefore the proportion of He that can potentially be produced from natural gas as a commercially recoverable product will ultimately be dependent on variables such as price and technology used.
Risking
Risking is as previously reported for prospective gas resources on 8 August 2024 and relates almost entirely to hydrocarbon gas carrier presence.
Issuance of shares to advisors
Several advisers have requested to take shares for services to show their alignment with the Company's strategy regarding the near-term drilling of MOU-5 and the assessment of the potential for helium in a large geological structure based on global settings for the presence of helium including, but not limited to, the supergiant Hassi R'Mel gas field in Algeria to the east of Guercif.
Accordingly the Company has issued 1,491,889 new ordinary shares ("Shares") at a price of 0.0925 pence per Share in lieu of adviser fees totalling £138,000.
Application is being made for the 1,491,889 Shares to be admitted to the Official List and to trading on the Main Market of the London Stock Exchange which is expected to be on or around 3 October 2024. These shares rank pari passu with the existing ordinary shares of the Company.
Following the issue of the 1,491,889 Shares, the Company's issued ordinary share capital shall consist of 571,874,754 ordinary shares.
This figure of 571,874,754 represents the total voting rights in the Company and should be used by shareholders as the denominator for the calculation by which they can determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority's Disclosure Guidance & Transparency Rules.
Paul Griffiths, Chief Executive Officer of Predator, commented:
"Given the potential size of the MOU-5 structure and its geological setting, this independent report on He potential enhances the case for the evaluation of potential helium presence in MOU-5. Although at an early stage of evaluation the opportunity to assess the ability to add value to an area development should not be missed.
The Company is delighted to have received an unsolicited proposal from advisers to take shares as a measure of the understanding and confidence that exists in the Company's near-term newsflow activity."