Announcement • Jun 11
Predator Oil & Gas Holdings Plc Provides Operational Update On Snowcap-3, Snowcap-2ST1, Jacobin-1, And MOU-6 Predator Oil & Gas Holdings Plc announced an operational update. SC-3 well inventory build for long-lead items progressing on schedule with delivery dates set by both in-country and overseas suppliers. Pre-drill logistics team in place to secure the drilling site to facilitate surveying for the construction of the well pad and associated production facilities. Service Orders for well services being issued. Commercial negotiations for the preferred drilling rig to align with the current window for drilling SC-3 are close to conclusion. Exact timing for the commencement of drilling operations to be announced closer to the current delivery dates being satisfied for all of the long-lead well inventory items that have been sourced from overseas, which are subject to freight transport logistics and customs clearance. SC-3 pre-drill logging and well testing programme is being finalised. Herrera #8 Sand targeted for production start-up based on a stabilised initial forecast flow rate of 500 bopd with a minimum production rate of 200 bopd to evaluate efficiency of oil storage capacity versus trucking logistics to the preferred sales point. 3 existing oil storage tanks with combined capacity of 1,200 barrels being moved to SC-3 well site to enable start-up production as early as possible following well testing. Sufficient oil storage capacity available to commence SC-2ST1 and Jacobin-1 operations prior to commencing the SC-3 well. SC-2ST1 increased bottom-hole reservoir pressure to 1845.7 psi to be evaluated first by swabbing operations to attempt to prepare the well for natural flow prior to pumping. Jacobin-1 has also provided encouragement for a well re-entry and wax treatment before conversion to pumping. Successful operations may potentially add initially 20 to 40 bopd for guidance purposes only, as the forecast is impossible to be determined accurately prior to the completion of operations. 2,289 barrels of net entitlement oil sold in April at a Heritage Fair Market Value sales price of USD 83.338/brl. Equivalent to a realised operating profit net-back of USD 31.9/brl after Heritage and Ministry licence costs and no exposure to field operating costs. 85.4% of the production is from Heritage Incremental Production Service Contracts, which have less favourable commercial terms relative to direct Ministry licences due to the application of additional royalties and First Tranche Oil at a fixed price of USD 16/brl. Over the next 6 months focus is on production start-up and cash flow from the Cory Moruga Exploration and Production Licence, which is a direct Ministry Licence. SC-3 operating net-back currently estimated pre-drill to be USD 52/brl (versus USD 31.9/brl for April sales oil using the same pricing parameters). This is subject to revision post-drill. Initial SC-3 production estimate of 6,000 brls./month pre-drill (versus 2,289 brls for April existing production). Accelerated establishment of the pre-drill SC-3 production facilities in Trinidad creates opportunity for a stepwise uplift in cash flow to potentially support reserves-based lending for MOU-6 in the event of a successful well test and a declaration of commerciality. The ITR is a strategic document for updating the Company's business development strategy for Morocco. Risk versus reward metrics for the proposed MOU-6 well are enhanced by the ITR. Historical drilling and rigless testing issues addressed by new well design, mud weight strategy; drilling fluids chemistry and use of larger, imported perforating guns. Finalising partnering relationships pre-drill that involve significant equity dilution in the MOU-6 project is commercially no longer attractive due to the Company's new re-assessment of risk versus reward. A relatively low quantum of capital is required for a potential initial MOU-6 pilot CNG and/or micro-LNG "proof-of-concept" development. Valuations remain subject to drilling success, testing results, commerciality assessment, regulatory approvals and market conditions. "Proof-of-concept" de-risking of the commercial model for gas monetisation would significantly enhance the potential value of unrisked P50 and P10 prospective and contingent gas resources. MOU-6 well inventory build for long-lead items will be completed at the beginning of August. Revised pre-drill strategies for well design and drilling mud chemistry completed and will ensure flexibility for potential testing and re-use of the proposed MOU-6 well. Environmental Impact Assessment is anticipated to be approved in July. MOU-6 will be drilled to +/- 950 metres. New Risk • May 21
New major risk - Shareholder dilution The company's shareholders have been substantially diluted in the past year. Increase in shares outstanding: 36% This is considered a major risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings. Currently, the following risks have been identified for the company: Major Risks Share price has been highly volatile over the past 3 months (13% average weekly change). Earnings have declined by 13% per year over the past 5 years. Shareholders have been substantially diluted in the past year (36% increase in shares outstanding). Minor Risks Revenue is less than US$5m (UK£939k revenue, or US$1.3m). Market cap is less than US$100m (UK£31.1m market cap, or US$41.8m). Announcement • May 15
Predator Oil & Gas Holdings Plc has filed a Follow-on Equity Offering in the amount of £3 million. Predator Oil & Gas Holdings Plc has filed a Follow-on Equity Offering in the amount of £3 million.
Security Name: Orinadry Shares
Security Type: Common Stock
Securities Offered: 85,714,286
Price\Range: £0.035
Transaction Features: Subsequent Direct Listing 
