TIDMPRD
RNS Number : 9226M
Predator Oil & Gas Holdings PLC
19 September 2023
FOR IMMEDIATE RELEASE
19 September 2023
Predator Oil & Gas Holdings Plc / Index: LSE / Epic: PRD /
Sector: Oil & Gas
Predator Oil & Gas Holdings Plc
("Predator" or the "Company" and together with its subsidiaries
"the Group")
Report and Interim Financial Statements for the 6 months to 30
June 2023
Financial highlights:
-- Loss from operations for the 6 months period is GBP2,361,721
((GBP599,789 for the 6 months period ended 30 June 2022 ).
-- Cash balance, at period end of GBP1,000,006 (2022 year end: GBP3,323,161).
-- A further GBP1,188,863 (US$1,500,000) held as restricted cash
and GBP630,575 (2022 year end: 659,504) by way of a loan to FRAM
Exploration Trinidad Ltd. for the investment in the Pilot CO2 EOR
Project .
-- GBP1,139,950 (before expenses) raised through two placings.
Issuing 14,174,056 new ordinary shares at a placing price of
GBP0.055 and 6,322,410 new ordinary shares at a placing price of
GBP0.057.
-- 1,000,000, 15,710,972 and 3,401,077 share options exercised
at GBP0.05, GBP0.08 and GBP0.10 respectively to raise GBP1,646,986
with the issue of 20,112,049 new ordinary shares
-- 1,875,000 and 160,714 warrants exercised at GBP0.04 and
GBP0.028 respectively to raise GBP79,500 with the issue of
2,035,714 new ordinary shares.
-- 6,401,077 and 15,710,972 share options issued exercisable at
GBP0.10 and GBP0.08 respectively.
-- Directors' loans advanced through sale of 22,189,580 existing
shares at GBP0.055 to raise GBP1,220,427; 18,000,000 existing
shares at GBP0.105 to raise GBP1,890,000; and 15,710,972 and
3,401,077 exercised share options at GBP0.08 and GBP0.10
respectively and sold at GBP0.057, compensated for by a loan of
GBP507,999.
-- No debt.
-- Issued share capital 426,403,418 (31 December 2022: 383,759,189)
Operational highlights:
-- MOU-2 drilled to 1260 metres and suspended for operational
reasons with an option to re-enter.
-- MOU-3 drilled to 1509 metres and completed for rigless testing.
-- MOU-3 encountered formation gas shows and shallow higher pressure gas.
-- Gas charge from deeper source rocks confirmed via major fault conduits
-- MOU-4 drilling at the end of the period under review.
-- Rigless testing programme being planned using ECS Sandjet perforating tool.
-- Compressed Natural Gas "Proof of Concept" development model established.
-- Potential Jurassic upside within 126 km2 structure being evaluated by MOU-4
-- Entry into a binding term sheet with Challenger Energy Group
Plc for the acquisition of the under-
developed Cory Moruga field subject to regulatory consent for an
agreed new work programme.
-- Company approached by a potential partner for Corrib South
offshore Ireland in the event of the award
of a successor authorisation.
Post reporting date:
-- On the 11 July 2023 the Company announced that the MOU-4 had
been drilled to 1199 metres. The edge of the Jurassic structure had
been penetrated and the well had been completed for rigless
testing.
-- On the 13 July 2023 the Company announced that the NuTech
petrophysical interpretation of the MOU-4 well had highlighted a
number of intervals for rigless testing.
-- On the 1 August 2023 the Company announced that the placing
announced on 31 July 2023 had been over-subscribed and had raised
gross proceeds of GBP10 million through the issue of 90,909,090 new
ordinary shares at GBP0.11.
In connection with the placing 8,318,181 broker warrants were
issued at an exercise price of GBP0.11.
-- On 10 August 2023 the Company published a Secondary
Prospectus (project "Allosaurus") including a Competent Persons
Report by Tracs International Limited.
-- On the 30 August 2023 the Company announced an operations
update including the extension of the Cory Moruga long-stop date
from 31 August 2023 to 30 November 2023 to facilitate completion of
the Cory Moruga transaction.
Predator Oil & Gas Holdings Plc (PRD), the Jersey-based Oil
and Gas Company ("Predator" or "the Company") focussed on
near-term, high impact drilling for gas in Morocco is pleased to
announce its unaudited interim results for the six-month period
ended 30 June 2023.
Executive Chairman's 's Report
Dear Shareholder,
The first six months of 2023 has seen the Company successfully
plan and implement a three-well drilling programme onshore Morocco
in line with its strategy of focussing on high impact drilling for
gas in Morocco.
Results from the MOU-3 well completed for rigless testing in
June were particularly encouraging and helped to de-risk the
Compressed Natural Gas ("CNG") development case. This is the
Company's preferred scenario for supplying the industrial gas
market in Morocco to help reduce reliance on carbon intensive
Liquified Petroleum Gas imports. Importantly MOU-3 confirmed the
interpretation of the results of the MOU-1 well completed in July
2021 and established a new gas basin covering up to 240 km(2) in
the northwest corner of the Guercif Licence. This has created the
opportunity to re-assess a previously unexplored part of the
Guercif Licence from the perspective of developing new gas
prospects at several different geological levels.
Higher gas prices are achievable in the private sector and CNG
offers a simpler solution to deliver gas to dispersed industrial
users compared to investing in pipeline infrastructure, which
requires more fixed capital investment; takes longer to construct
due to requirements for environmental approvals and land
permitting; and necessitates initially deploying more risk capital
for drilling to underpin a minimum medium term gas production
profile to fix the required amount of pipeline capacity. By
contrast CNG is a flexible and scalable development where
additional capital expenditure can be funded organically and
proportionally out of productions revenues given Morocco's very
favourable fiscal regime.
Gas-to-power developments are longer term and will likely
attract a lower gas sales price as the State is the only permitted
buyer of the gas for electricity generation.
The Company's drilling programme is being targeted at defining
the minimal, relatively modest, flow rates required for a scalable
CNG development to create a revenue-generating business, whilst
maintaining the impetus to discover larger volumes of gas for which
future markets might include gas-to-power and export to Europe via
the Maghreb gas pipeline, which runs through the area drilled to
date by the Company.
2023 thus far continues to be dominated by the ramifications of
the Ukraine-Russia crisis which has led to an Energy Crisis.
Inflation has increased to levels that are beginning to impact the
global economy. The Company is pleased to report that despite
sharply rising costs it has re-structured its Moroccan operations,
by availing of management's extensive historical and present
relationships with suppliers of well services in many different
jurisdictions, to maintain drilling costs in line with actual 2021
costs.
Identification and development of CO2 EOR projects in Trinidad
remains a key objective of the Company. CO2 EOR is compatible with
promoting a stable period of Energy Transition for those countries
where the economies are heavily reliant on revenues and taxes from
the oil and gas sector. It's a practical short-term measure that
contributes positively to assisting to achieve the longer term
solution of greener energy supply, storage for anthropogenic CO2
and promoting economic stability.
As with all projects that involve an element of seeking to
stabilise and ultimately reduce CO2 emissions the project economics
have to demonstrate a commercial return to investors within a
relatively short timescale. Larger projects would require State
funding to underpin the investment model in order to generate
acceptable returns for investors. This is how market dynamics work
in practice to contribute towards maintaining healthy
economies.
In Ireland the Company's shorter-term emphasis has shifted so
far in 2023 to attempting to secure a successor authorisation for
Corrib South. Energy security, gas storage and preserving EU gas
infrastructure to maintain diversification of entry points into the
European gas grid independent of Russian gas supplies is becoming
of increasing strategic significance. Maintaining the longevity of
the Corrib gas field infrastructure during the Energy Transition
for blended gas and hydrogen storage and possible LNG imports
contributes to this strategic objective.
The Company is working with a potential strategic partner in the
event a successor authorisation for Corrib South is awarded.
The Mag Mell FSRU project and the application for a successor
authorisation for Ram Head focussed on the development of a gas
storage facility remain on the table for consideration by the Irish
regulatory authorities but are not expected to advance further
during 2023.
The Energy Transition and "Security of Energy Supply" have
become critical issues in 2023 for the well-being of the global
economy. The informed narrative in relation to the "Energy Crisis"
and the dawning of the practical realisation that net zero CO2
emissions cannot be achieved without a period of transition has
resulted in an increased willingness to invest in the gas and, to a
lesser extent, oil sectors during the period under review.
The Company has always maintained focus on and operatorship of
its three core areas of Morocco, Trinidad and Ireland. It has not
diluted project equity in that time on the basis that any future
monetisation of assets has a greater chance of attracting entities
of substance if the opportunity is material to them.
The outlook for the remainder of 2023 will see the rigless
testing programme in Morocco initiated and completed and, subject
to results, the CNG development plan being progressed targeting
"First Gas" in 2024.
Additional high impact drilling opportunities in Morocco will be
evaluated and potentially progressed in 2023 and 2024.
Subject to completion of the acquisition of TRex Holdings
Trinidad Limited and regulatory approvals, a high impact appraisal
well in the under-developed Cory Moruga licence may be scheduled
for 2024.
The Corrib South successor authorisation will be progressed as
far as possible with the potential for a strategic partner to
become involved in any future licence award.
Market dynamics are cyclical and currently the appetite is for
near-term, value creating, drilling success. The Company's
portfolio is aligned with investor sentiment for near-term activity
with the prospects of material results in a success case.
Operational overview
Morocco
The extension of the Initial Period of the Guercif Petroleum
Agreement by a further 9 months allowed the Company to advance a
drilling programme scheduled for the First Extension Period thereby
satisfying all drilling commitments for the First Extension Period.
It also facilitated the rollover of the current bank guarantee in
favour of ONHYM without the requirement to increase the amount.
The first well in the programme, MOU-2, was drilled in January
to target an area of the "Moulouya Fan" interpreted to potentially
contain thicker reservoir sands.
The well was suspended at 1260 metres depth, above the intended
primary target, due to operational issues impacting the drilling
rate. It was left in a condition to facilitate an option to
re-enter following an analysis of the drilling mud system to
determine the changes that would be required to improve drilling
performance and reduce the risk of getting logging tools stuck
downhole in a particular unplanned-for geological formation. This
was interpreted from the mud log and gamma log acquired whilst
drilling as a large-scale slump feature.
The well could only be logged down to 1010.87 metres depth where
the logging tools could not penetrate into the section interpreted
as the slump feature.
Below the logged interval a gross interval of 165 metres was
penetrated with up to 100 metres of variable quality sand. Presence
of significant thicknesses of sands not seen in MOU-1 drilled 8
kilometres to the west in 2021 confirmed the pre-drill predictions
that the area to the east offered greater potential for sand
development at the level of the primary target
The second well in the programme, MOU-3, was drilled and
completed for rigless testing in June. It tested a shallow four-way
dip closure and a deeper down-faulted closure potentially sealing
against a fault at the level of the primary target.
Within the shallow closure over-pressured gas was unexpectedly
encountered in an 11 metre-thick sand from 339 to 350 metres depth
with a 3% formation gas show. The interval was estimated to be 122
psi over-pressured.
Further formation gas shows were encountered in sands at 449
metres (1.0%), 509 metres (1.35%), 555 metres (1.51%) and 751
metres depth (2.42%).
No provision for wireline logging had been made pre-drill for
this shallow section.
Due to the unexpected presence of over-pressured shallow gas a
different well design would need to be considered and the MOU-3
well twinned to approximately 800 metres depth to safely conduct a
rigless test in this interval.
Structural closure is estimated to be up to 6 km(2) within this
gross interval of 450 metres with several levels of gas-bearing
sands.
Potentially material gas resources may be present within this
structural closure.
Deeper within the shallow structural closure the " Ma and TGB-6"
sands were encountered from 815 to 895 metres depth with formation
gas show of 2.06% at 817 and 3.0% at 841 metres depth. Five
potential sands with higher background gas were present. Individual
sands have a maximum thickness of 3 metres giving an estimated
cumulative thickness of 11.5 metres versus a P10 pre-drill forecast
sand thickness of 10 metres.
Pre-drill P50 structural closure was determined to be 6km(2) for
the area containing the Ma and TGB-6 sands.
Preliminary post-drill seismic interpretation indicates that the
MOU-3 shallow structure may persist several kilometres to the
southwest towards the MOU-1 well drilled in 2021, where formation
gas shows and gas was interpreted in the Ma and TGB-6 sands.
Several thin sands up to one metre thick were encountered
between 1046 and 1140 metres depth. The upper sands are interpreted
as being the TGB-4 sands. Borehole quality is poor in this section
and further petrophysical analysis supported by rigless testing is
required to fully evaluate the potential of this section.
The "Moulouya Fan" target was encountered between 1378 and 1437
metres with approximately 50.5 metres of sand versus a pre-drill
P50 expectation of 19 metres.
Elevated background gas readings were recorded whilst drilling
this section and a formation gas show of 0.95% was encountered at
1395 metres drilling depth. This section was drilled significantly
over-balanced with a mud weight of 1.47 SG to reduced shale cavings
from highly mobile claystones in an interval above the Moulouya
Fan.
The Moulouya Fan interval penetrated by MOU-3 is defined by a
sequence of strong seismic events covering an area of at least 30
km(2). The potential for a large stratigraphic trap exists within
which there may be faulted compartments.
MOU-3 reached its planned total depth of 1,509 metres TVD MD on
21 June 2023. Wireline logs were acquired for the interval from 725
to 1509 metres depth. NuTech wireline log analysis and reservoir
characterisation of the MOU-3 well highlighted 43 metres to be
likely gas sands. The well was completed for rigless testing using
the Sandjet water jet perforating technology widely used in the
United States. The primary advantage of Sandjet is that it allows
deeper penetration into potential gas reservoirs beyond the
wellbore zone impacted by heavier drilling mud invasion in
circumstances where the drilling is over-balanced. It is also more
cost-effective compared to conventional perforating options using
explosives where there are a number of separate reservoir sands to
be evaluated for assessing the potential to co-mingle on
production.
MOU-3 successfully satisfied several key pre-drill
objectives.
-- It de-risked gas charge to identify migration pathways for
deep thermogenic gas to ascend to shallower potential reservoir
sands, thereby creating the framework for re-evaluating other
prospective structures adjacent to these migration pathways with
potential Jurassic and Tertiary sandstone and carbonate
reservoirs;
-- It verified the integrity of the MOU-3 hydrocarbon trap at
multiple levels and enhanced the case for significant shallow gas
potential;
-- It de-risked, subject to the rigless testing results, the
"Proof of Concept" for the minimum volume and likely gas flow rates
required to initiate a CNG development;
-- subject to rigless testing results, MOU-3 confirmed the
scalability of an initial CNG development to meet the near-term
demands of the Moroccan industrial market; and
-- validated that the reservoir distribution over multiple
levels is ideally suited to the scalable CNG development concept
focussed on transporting gas by road and not relying on large-scale
capital investment in fixed pipeline infrastructure.
At the end of the period under review MOU-4 had commenced
drilling.
The primary objectives of the MOU-4 well are to evaluate a
potential southwestern extension of the Moulouya Fan and to
penetrate and confirm the presence of a Jurassic section to satisfy
a specific drilling licence commitment whilst also evaluating the
rationale for testing a Jurassic structure covering up to 126km(2)
in an optimal crestal position.
The rigless testing programme is intended to begin with the
testing of MOU-1 at multiple shallow and deep levels.
Trinidad
During the period under review the Company announced that it had
completed all confirmatory due diligence on Cory Moruga and had
subsequently entered into fully termed long-form legal
documentation with Challenger Energy Group Plc to acquire TRex
Holdings (Trinidad) Limited ("TRex") subject to regulatory
approvals and consents.
The Cory Moruga Licence encompasses historical hydrocarbon
discoveries that have never been fully developed due primarily to
periodic changes in the ownership of TRex, financial constraints
and operational issues with an appraisal well designed to test all
the potential oil-bearing sands in the main structural feature
covered by 3D seismic which led to the well being prematurely
terminated above the deeper targets.
The initial discovery well, drilled and successfully tested by
the previous operator to TRex, also missed the majority of the main
targets as it was located prior to the acquisition of the 3D
seismic and crossed a fault now visible on the good quality 3D
seismic data.
The Company's management has extensive knowledge of this area of
onshore Trinidad having launched an unsuccessful bid pre-IPO for
the former BP Moruga West field, which encroaches into the Cory
Moruga Licence, in 2017.
The Company therefore recognises significant unrealised
potential resources within the Cory Moruga Licence. Furthermore, on
account of the under-developed nature of the hydrocarbon
accumulations, there is scope for a miscible CO2 EOR project early
in the development phase of any production opportunity if original
reservoir pressures are not permitted to steeply decline. This can
in a success case lead to a significant uplift in ultimately
recoverable oil whilst also sequestering anthropogenic CO2.
Currently the Company is working together with all parties to
seek to secure the transfer of this material asset into the
Company's portfolio of projects. Until this is completed and
regulatory approval and consents have either been granted or
declined the Company will not be simultaneously pursuing other
opportunities onshore Trinidad.
Ireland
During the period under review the Company has concentrated its
efforts on addressing its application for a successor authorisation
for Corrib South.
Following an unsolicited approach in relation to Corrib South
from a potential strategic partner of substance correspondence has
been exchanged between the Company and the Geoscience Regulation
Office of the Department of the Environment, Climate and
Communications. This represents a positive development but should
not be construed as indicating that an award of a successor
authorisation for Corrib South is imminent.
The Company's strategy is to exercise patience and to ensure
that our applications for successor authorisations remain under
active consideration until such time that the argument for security
and diversity of gas supply and the protection of strategic
infrastructure for the Energy Transition becomes overwhelming.
Corrib South has significant potential prospective gas resources
that in a success case could be monetised through the Corrib
infrastructure to preserve its longevity and assist with the
transition to a blended natural gas and hydrogen storage
facility.
Financial review
The Company reported an operating loss for the period to 30 June
2023 of GBP2,361,721 ((GBP599,789 for the 6 month period ended 30
June 2022 ) . The increase in operating loss is mostly attributable
to increased drilling activity in Morocco which is deemed vital to
adding potential gas resources and ultimately creating shareholder
value.
Administrative expenses for the period to 30 June 2023 included
a GBP1,444,227 (GBP131,297 for the 6 month period ended 30 June
2022) fair value expense to warrants and share options, however
directors' fees have been reduced to GBP138,000 (GBP182,699 for the
6 month period to 30 June 2022) despite the significant increase in
corporate activities which included Project Allosaurus costs of
GBP117,000 related to progressing a Secondary Prospectus with the
FCA.
The Company is finishing the reporting period with cash reserves
of GBP 1,006,006 ( 2022: full year GBP3,323,161) and restricted
cash of GBP 1,188,863 (2022: full year GBP1,245,798) in the form of
the security deposit for the Guercif Bank Guarantee in favour of
ONHYM. The balance outstanding of the loan by the Company to FRAM
for the investment in the Pilot CO2 EOR Project was GBP630,575
(2022: full year GBP659,504).
GBP1,139,950 (before expenses) has been raised through two
placings by issuing 14,174,056 new ordinary shares at a placing
price of GBP0.055 and 6,322,410 new ordinary shares at a placing
price of GBP0.057.
1,000,000, 15,710,972 and 3,401,077 share options have been
exercised at a price of GBP0.05, GBP0.08 and GBP0.10 respectively
to raise GBP1,646,986 by the issue of 20,112,049 new ordinary
shares.
1,875,000 and 160,714 broker warrants have been exercised at
GBP0.04 and GBP0.028 respectively to raise GBP79,500 by the issue
of 2,035,714 new ordinary shares.
6,401,077 and 15,710,972 share options have been issued
exercisable at GBP0.10 and GBP0.08 respectively.
The Company has no third party debt.
Related party transactions comprised Executive Directors' loans
advanced through the sale by Novum Securities Limited of 22,189,580
existing shares at GBP0.055 to raise GBP1,230,427; 18,000,000
existing shares at GBP0.105 to raise GBP1,890,000; and 15,710,972
and 3,401,077 exercised share options at GBP0.08 and GBP0.10
respectively and sold at GBP0.057, compensated for by a loan of
GBP507,999 from the Executive Directors.
Placing funds and Executive Directors' loans provided the
working capital to facilitate funding the Company's well planning
and part-funding the drilling operations in Morocco to avoid an
expensive demobilisation and re-mobilisation of Star Valley Rig
101.
As a result of the transactions successfully concluded during
the period under review, the Company is well-capitalised for
initial drilling operations, free of third party debt and is in a
position to deploy prudent levels of administrative expenditure
focussed on enhancing and promoting the potential of the Company's
portfolio.
COVID pandemic and Energy Crisis
The Company took all commensurate steps during the period under
review to minimise unnecessary capital expenditures and operating
costs in the event that COVID restrictions might be re-imposed at
some future date. The Energy Crisis is impacting the industry's
business operations worldwide as a result of rising inflation and
rising costs in respect of well services and well inventory. The
Company's management has managed this situation through continuing
to apply negotiating skills to reduce costs and by eliminating
unnecessary expenditures. As a result our drilling budgets remain
in line with our actual 2021 drilling costs.
A resurgence of COVID would be manageable based on the lessons
learnt, experience gathered and changes to operating procedures and
capital deployment enacted during COVID-19.
Maintaining adequate cash reserves and delivering a high impact
drilling programme in Morocco focussed on the opportunity to supply
gas to the Moroccan industrial market is a prudent risk-reward
proposition for our shareholders. Reducing expenditures in the
short-term in Trinidad and Ireland is also prudent in order to
focus resources on delivering this key value proposition in Morocco
for shareholders. This does not reduce the Company's strategic and
competitive advantages neither in Trinidad for CO2 EOR operations
based on our practical experience, expertise and technical
database, nor in Ireland, where the Company currently offers a
viable gas storage project and a FSRU LNG gas import option
together with an opportunity to increase the longevity of the
Corrib gas field infrastructure. Continuing with demonstrating the
capability of delivering CO2 sequestration using CO2 EOR technology
in Trinidad is an important contribution to helping to reduce CO2
emissions during the Energy Transition. These strategic objectives
are allowing the Company to demonstrate to potential partners and
investors its ability to perform and create exciting business
development opportunities compatible with the requirements for an
effective Energy Transition. This is even more important to
demonstrate now during the onset of the Energy Crisis and the
realisation of the practical requirement for a planned Energy
Transition.
Summary
During the period under review, the Company has successfully
implemented its Moroccan drilling programme and has already
achieved a sufficient level of success facilitating it to be in a
position to consider and plan a rigless testing programme.
Initial results from the drilling of MOU-3 are encouraging in
the context of the Company's strategy to develop CNG for the
Moroccan industrial market.
MOU-3 has de-risked the potential to nominate other potential
structures prospective for gas for short and medium-term drilling
which will provide both "running room" and further opportunities to
add prospective gas resources.
Licensing arrangements for Guercif have been renegotiated such
that all firm drilling commitments for the next two years will have
been satisfied and further drilling will only be at the Company's
discretion.
Financial discipline has ensured that the Moroccan portfolio of
prospects is being explored and developed in a cost-effective
manner. This has allowed the Company to maintain an undiluted
interest in its assets thereby providing the materiality necessary
to attract larger entities assist in to addressing future
monetisation of the assets.
Our projects in Trinidad and Ireland remain patiently managed at
minimal cost and can be advanced rapidly to create potential
shareholder value as and when negotiations reach a stage where
licences and acquisitions receive regulatory approval and
consent.
During the period under review we have taken the opportunity,
when possible and advisable, to raise funds in the public markets.
This is necessary for us to maintain our projects in good standing
and to strengthen our hand in commercial negotiations with well
services, well inventory suppliers and with potential end users of
gas in Morocco. It also ensures that we maintain a material
undiluted stake in our assets at project level. The Company is
well-funded and is taking preliminary steps to strengthen its
balance sheet in order to be in a position to progress a potential
CNG development in Morocco during the remainder of this year.
On behalf of the Board, I would like to thank our shareholders
for their continued support of the Company through what has been
another particularly active period of operations. We look forward
over the next 6 months to continue making positive progress towards
monetising our discovered gas through a CNG development.
Paul Griffiths
Executive Chairman
Paul Griffiths, Executive Chairman of Predator, commented:
"This has been a particularly active period for the Company as
we have begun executing a multi-well drilling programme onshore
Morocco. Operations have been managed efficiently and initial
drilling results are very encouraging. MOU-3 results have so far
exceeded management's pre-drill expectations.
Market sentiment has changed for the oil and gas sector in the
early part of 2023 and those companies that are activity driven and
focussed on drilling and delivering near-term value with a
reasonable expectation of early monetisation are being favoured by
investors in the sector.
Gas is a commodity in Morocco which is much in demand and the
industrial market ensures gas price stability within a favourable
fiscal regime that facilitates longer term planning and creates
greater certainty for asset valuation independent of global pricing
trends.
Our strength lies in being an early mover to identify
value-creating opportunities and to patiently bring them to a stage
where early monetisation is a realistic goal."
For further information visit www.predatoroilandgas.com
Follow the Company on twitter @PredatorOilGas.
This announcement contains inside information for the purposes
of Article 7 of the Regulation (EU) No 596/2014 on market abuse
For more information please visit the Company's website at
www.predatoroilandgas.com :
Enquiries:
Predator Oil & Gas Holdings Plc Tel: +44 (0) 1534 834 600
Paul Griffiths Executive Chairman Info@predatoroilandgas.com
Lonny Baumgardner Managing Director
Novum Securities Limited Tel: +44 (0)207 399 9425
David Coffman / Jon Belliss
Fox-Davies Capital Tel +44 (0)203 884 7447
Jerry Keen jerry@fox-davies.com
Flagstaff Strategic and Investor Communications Tel: +44 (0)207 129 1474
Tim Thompson predator@flagstaffcomms.com
Mark Edwards
Fergus Mellon
Notes to Editors:
Predator is operator of the Guercif Petroleum Agreement onshore
Morocco which is prospective for Tertiary gas less than 10
kilometres from the Maghreb gas pipeline. The MOU-1 well drilled in
2021 and the MOU-3 well drilled in 2023 have been completed for
rigless testing in 2023. Focus is on supplying compressed natural
gas to the Moroccan industrial market. Further drilling activity is
being progressed to evaluate Jurassic prospects.
Predator is seeking to apply CO2 EOR techniques onshore Trinidad
which have the advantage of sequestrating anthropogenic carbon
dioxide. Acquisition opportunities are also being progressed which
are compatible with this strategy.
Predator owns and operates exploration and appraisal assets in
licensing options offshore Ireland, for which successor
authorisations have been applied for, adjoining Vermilion's Corrib
gas field in the Slyne Basin on the Atlantic Margin and east of the
decommissioned Kinsale gas field in the Celtic Sea.
Predator has developed a Floating Storage and Regasification
Project ("FSRUP") for the import of LNG and its regassification for
Ireland and is also developing gas storage concepts to address
security of gas supply and volatility in gas prices during times of
peak gas demand.
The Company has a highly experienced management team with a
proven track record in successfully executing operations in the oil
and gas sector.
The interim management report and interim results are set out in
the following pages.
The Directors present their report and the unaudited
consolidated financial statements together with related notes, of
Predator Oil & Gas Holdings Plc and its subsidiaries ("the
Group") for the six months ended 30 June 2023. The statements have
been prepared in accordance with IAS 34 Interim Financial
Reporting. They do not include all the information required for a
complete set of UK-adopted international accounting standards
financial statements. However, selected explanatory notes are
included to explain events and transactions that are significant to
an understanding of the changes in the Group's financial position
and performance since the last annual consolidated financial
statements as at the year ended 31 December 2022. The results for
the period ended 30 June 2023 are unaudited. These statements are
in agreement with accounting records which have been properly kept
in accordance with Article 103 of the Companies (Jersey) Law
1991.
Responsibility Statement
We confirm that to the best of our knowledge:
- The Interim Report has been prepared in accordance with
International Accounting Standards 34, Interim Financial Reporting
and applicable law
- The condensed set of financial statements, which has been
prepared in accordance with the applicable set of accounting
standards, gives a true and fair view of the assets, liabilities,
financial position and profit or loss of the issuer, or the
undertakings included in the consolidation as a whole as required
by DTR 4.2.10
- The Interim Report includes a fair review of the information
required by DTR 4.2.7R of the Disclosure and Transparency Rules,
being an indication of important events that have occurred during
the first six months of the financial year and their impact on the
set of interim financial statements; and a description of the
principal risks and uncertainties for the remaining six months of
the year and
- The Interim Report includes a fair review of the information
required by DTR 4.2.8R of the Disclosure and Transparency Rules,
being the information required on related party transactions.
The Interim Report was approved by the Board of Directors and
the above responsibility statement was signed on its behalf by
Executive Chairman
COVID statement, Energy Crisis and global outlook
The six-month period ended 30 June 2023, has seen an increase in
COVID variants. We must therefore remain vigilant in the event that
there is a further outbreak of COVID in the future. Businesses have
learnt now how to adapt through the COVID-19 experience to any
potential COVID restrictions in order to navigate through the
challenges it poses.
The Energy Crisis has created a new landscape for the oil and
gas sector which has seen a rise in oil and gas activity
particularly in relation to drilling and LNG distribution. There is
an increasing demand for well services and well materials. Sourcing
requirements is still possible but requires greater flexibility in
terms of widening the geographic spread of suppliers. Promptly
paying for local in-country and international services, including
being in a position to make advance payments, creates loyalty and
business trust to maintain good relations. It is important to be
well-funded in order to promote stronger business relationships.
Cost inflation is manageable through prudent planning, efficiency
of operations and cost-cutting strategies to eliminate waste and
redundancy.
Public awareness of climate change concerns and unsustainable
accelerating levels of CO2 emissions has been heightened. The
fossil fuel industry has been the primary focus of attention during
this time, given its high-profile current and historical
contribution to generating CO2 emissions through use by, largely,
third parties of its products. This has created a difficult
environment for attracting equity and debt finance as banks and
institutions react to pressure to disassociate themselves from
fossil fuel investments.
However there is now a practical and pragmatic approach by many
that an Energy Transition is required, based mainly on gas, in
order to preserve economic stability to counter rising energy costs
and fears over security of energy supplies. This has resulted in
increased sentiment for investment in the oil and gas sector in the
early part of 2023.
The Energy Transition has a key role to play in navigating the
way to lowering of CO2 emissions by gas replacing coal and oil. The
wind does not always blow, the sun does not always shine and large
amounts of electricity cannot yet be stored! It is therefore
inevitable that gas will be required for years to come as a back-up
energy supply when renewables cannot meet the demand. The fossil
fuel industry produces gas. The fossil fuel industry has the
knowledge and expertise to develop indigenous gas resources, LNG
import options, and the underground reservoirs for CO2
sequestration and gas and hydrogen storage. Investment should be
focussed on these aspects of the industry to address the "Energy
Crisis" and the Energy Transition.
The Energy Crisis has created volatility in the foreign exchange
markets. The Company continues to execute a strategy of holding
different currencies necessary to satisfy its financial commitments
in different jurisdictions. Exposure to currency fluctuations will
be inevitable for the foreseeable future given the volatile state
of the currency markets generated by uncertain economic conditions
and variable interest rates for different currencies. This will be
one of the areas of greatest concern going forward.
Condensed consolidated statement of comprehensive income
For the 6 months to 30 June 2023
01.01.2023 01.01.2022
to 30.06.2023 to 30.06.2022
(unaudited) (unaudited)
Notes GBP GBP
------------------------------------------ ------ --------------- ---------------
Administrative expenses 3 (2,311,893) (599,789)
Operating loss (2,311,893) (599,789)
Finance income - -
Finance expense (49,590) -
Loss for the period before taxation (2,361,483) (599,789)
Taxation (238) -
Loss for the period after taxation (2,361,721) (599,789)
------------------------------------------ ------ --------------- ---------------
Other Comprehensive income - -
Total comprehensive loss for the period
attributable to the owner of the parent (2,361,721) (599,789)
------------------------------------------ ------ --------------- ---------------
Loss per share basic and diluted (pence) 4 (0.592) (0.219)
Condensed consolidated statement of financial
position
As at 30 June 2023
30.06.2023 31.12.2022
(unaudited) (audited)
Notes GBP GBP
----------------------------------------------- ------ ------------- -------------
Non-current assets
Tangible fixed assets 2,230 3,448
Intangible asset 5 11,440,803 5,275,720
----------------------------------------------- ------ ------------- -------------
11,443,033 5,279,168
Current assets
Trade and other receivables 6 3,637,004 1,986,670
Cash and cash equivalents 7 1,000,006 3,323,161
----------------------------------------------- ------ ------------- -------------
4,637,010 5,309,831
Total assets 16,080,043 10,588,999
----------------------------------------------- ------ ------------- -------------
Equity attributable to the owner of the
parent
Share capital 8 20,927,030 16,840,165
Reconstruction reserve 1,516,595 1,909,540
Warrants issuance cost 10 (702,781) (583,825)
Share based payments reserve 10 2,116,190 1,379,964
Retained deficit (11,744,860) (10,210,097)
----------------------------------------------- ------ ------------- -------------
Total equity 12,112,174 9,335,747
Current liabilities
Trade and other payables 9 3,967,869 1,253,252
----------------------------------------------- ------ ------------- -------------
Total liabilities 3,967,869 1,253,252
----------------------------------------------- ------ ------------- -------------
Total liabilities and equity 16,080,043 10,588,999
----------------------------------------------- ------ ------------- -------------
Condensed consolidated statement of changes
in equity
For the 6 months to 30
June 2023
Attributable to owner of the parent
Warrants
Share Reconstruction issuance Share based Retained
Capital reserve cost reserve payments deficit Total
GBP GBP GBP GBP GBP GBP
Balance at 31 December
2021 11,425,061 2,386,321 (376,820) 611,173 (8,337,551) 5,708,184
----------------------------- ----------- --------------- -------------- ------------ ------------- ------------
Loss for the period - - - - (599,789) (599,789)
Total comprehensive loss
for the period - - - - (599,789) (599,789)
----------------------------- ----------- --------------- -------------- ------------ ------------- ------------
Issue of ordinary share
capital 1,035,000 - - - - 1,035,000
Transaction costs - (83,799) - - - (83,799)
Share based payment charge - - - 131,297 - 131,297
Total transactions with
owners 1,035,000 (83,799) - 131,297 - 1,082,498
----------------------------- ----------- --------------- -------------- ------------ ------------- ------------
Balance at 30 June 2022 12,460,061 2,302,522 (376,820) 742,470 (8,937,340) 6,190,893
----------------------------- ----------- --------------- -------------- ------------ ------------- ------------
Balance at 31 December
2022 16,840,165 1,909,540 (583,825) 1,379,964 (10,210,097) 9,335,747
----------------------------- ----------- --------------- -------------- ------------ ------------- ------------
Loss for the period - - - - (2,361,721) (2,361,721)
Total comprehensive loss
for the period - - - - (2,361,721) (2,361,721)
----------------------------- ----------- --------------- -------------- ------------ ------------- ------------
Issue of ordinary share
capital 2,360,380 - - - - 2,360,380
Issue of warrants - - - 210,155 - 210,155
Exercised options 1,646,985 - - (874,015) 874,015 1,646,985
Share based payment charges - - - 1,444,228 - 1,444,228
Exercised warrants 79,500 - 44,142 (44,142) - 79,500
Cancelled/expired warrants - - 47,057 - (47,057) -
Warrants issuance costs - - (210,155) - - (210,155)
Transaction costs - (392,945) - - - (392,945)
Total transactions with
owners 4,086,865 (392,945) (118,956) 736,226 826,958 5,138,148
----------------------------- ----------- --------------- -------------- ------------ ------------- ------------
Balance at 30 June 2023 20,927,030 1,516,595 (702,781) 2,116,190 (11,744,860) 12,112,174
----------------------------- ----------- --------------- -------------- ------------ ------------- ------------
Condensed consolidated statement of cash
flows
For the 6 months to 30 June 2023
01.01.2023 01.01.2022
to 30.06.2023 to 30.06.2022
(unaudited) (unaudited)
GBP GBP
------------------------------------------------------ --- --------------- ---------------
Cash flows from operating activities
Loss for the period before taxation (2,361,721) (599,789)
Adjustments for:
Share based payment expense 10 1,444,227 131,297
Finance expense 49,590 -
Depreciation 1,218 1,218
Foreign exchange 127,385 (295,419)
(Increase)/decrease in trade and other receivables (1,742,397) 18,450
Increase/(decrease) in trade and other payables 2,714,617 (118,010)
Net cash generated from/ (used in) operating
activities 232,919 (862,253)
------------------------------------------------------- --- --------------- ---------------
Cash flow from investing activities
Capitalised costs - Project Guercif - Morocco (6,165,083) (170,965)
Net cash used from investing activities (6,165,083) (170,965)
------------------------------------------------------- --- --------------- ---------------
Cash flows from financing activities
Proceeds from issuance of shares, net of issue
costs 3,693,921 951,200
Finance expense paid (49,590) -
Net cash generated from financing activities 3,644,331 951,200
------------------------------------------------------- --- --------------- ---------------
Effect of exchange rates on cash (35,322) 108,417
Net (decrease)/increase in cash and cash equivalents (2,323,155) 26,399
Cash and cash equivalents at the beginning
of the period 3,323,161 1,523,035
Cash and cash equivalents at the end of the
period 1,000,006 1,549,434
------------------------------------------------------- --- --------------- ---------------
Significant non-cash transactions
During the period there were various significant non-cash
transactions relating to share options, warrants issued during the
period and loans to directors for shares lent, which are detailed
in notes 8, 9 and 10.
Notes to the condensed consolidated interim financial
statements
For the 6 months to 30 June 2023
General information
Predator Oil & Gas Holdings Plc ("the Company") and its
subsidiaries (together "the Group") are engaged principally in oil
and gas business activities in the Republic of Trinidad and Tobago,
Morocco and Ireland. These activities include licence acquisitions;
potential acquisitions of companies; operation of exploration and
appraisal drilling; and the planning and execution of future
development projects. The Company's ordinary shares are on the
Official List of the UK Listing Authority in the standard listing
section of the London Stock Exchange.
Predator Oil & Gas Holdings plc was incorporated in 2017 as
a public limited company under Companies (Jersey) Law 1991 with
registered number 125419. It is domiciled and registered at IFC5,
3rd Floor, Castle Street, St Helier, Jersey, JE2 3BY.
Basis of preparation
The condensed consolidated interim financial statements are
prepared under the historical cost convention and on a going
concern basis and in accordance with UK adopted international
accounting standards and IFRIC interpretations adopted for use in
the United Kingdom ("IFRS").
The condensed consolidated interim financial statements
contained in this document do not constitute statutory accounts
under Companies (Jersey) Law 1991. In the opinion of the directors,
the condensed consolidated interim financial statements for this
period fairly presents the financial position, result of operations
and cash flows for this period.
Statutory financial statements for the year ended 31 December
2022 were approved by the Board of Directors on 27 April 2023. The
report of the auditors on those financial statements was
unqualified with the recoverability of the loan receivable from
FRAM (note 7) and the capitalisation of exploration costs being
considered key audit matters. The audit report also contained
material uncertainty in respect of the Group's going concern.
The Board of Directors approved this Interim Financial Report on
22 September 2023.
Statement of compliance
The Interim Report includes the consolidated interim financial
statements which have been prepared in accordance with
International Accounting Standard 34 'Interim Financial Reporting'.
The condensed interim financial statements should be read in
conjunction with the annual financial statements for the year ended
31 December 2022, which have been prepared in accordance with
UK-adopted international accounting standards.
Going Concern
Notwithstanding the operating loss incurred during the period
under review and following successful placings to raise a total of
GBP1,139,950 before expenses and a further successful placing post
the reporting period to raise GBP10,000,000 before expenses, the
Directors have a reasonable expectation that the Group will not
need to raise funds to continue with its operational commitments
and to meet all of its current contractual liabilities for the
foreseeable future.
The planned major initiative for 2023 is the Moroccan drilling
and rigless testing programme. The costs for these wells are
currently based on actual costs for the reporting period and those
received post the period under review. Whilst the cost of well
services and equipment has gone up and the value of the United
States dollar strengthened significantly against sterling at times
in early 2023, this has been largely offset against savings made in
the drilling programme both due to accumulated drilling experience
since 2021 and the economies of scale created by a multi-well
drilling programme. Drilling costs have therefore been within
pre-drill budget estimates for the overall drilling programme.
A successful negotiation with ONHYM has taken place that allows
the US$1,500,000 Bank Guarantee in favour of ONHYM to be rolled
over to the First Extension Period of the Guercif Petroleum
Agreement thereby saving US$2,146,000 for the Bank Guarantee
required to enter the First Extension Period.
The Company has sufficient funding, if required to execute the
acquisition of TRex Holdings (Trinidad) Limited within the next 12
months and also to contribute to the initial costs for a CNG
development in Morocco subject to the award of an Exploitation
Concession. The Company has interest from two lenders to provide
debt financing for a CNG development which is expected to require a
minimum of US$5 million (net the Company's 75% equity stake)for the
"Proof of Concept" development case. If following the debt
financing route proved sufficiently attractive, discretionary cash
on the Company's balance sheet could contribute to additional
drilling in Morocco. Accordingly, either an appraisal of the
Jurassic structure or CNG development wells for upscaling gas
deliveries could be considered.
Trinidad has not required any additional working capital other
than a small allotment of funds for care and maintenance. The
Operator of the Inniss-Trinity Incremental Production Services
Contract ("IPSC"), FRAM, unilaterally elected to terminate the
Inniss-Trinity CO2 EOR Pilot Project without informing the licence
holder Heritage Petroleum Trinidad Ltd. ("Heritage"). As a result,
no further funds are being invested in the project and there are no
residual liabilities to be incurred by the Company. The Well
Participation Agreement ("WPA") with FRAM and all accrued
entitlements due to the Company arising from the WPA up until the
time the project was unilaterally terminated by FRAM's parent
company currently remain due, as does the Loan advanced to FRAM,
which is repayable from the profits of the sale of enhanced oil
production.
During the period under review, the Company has entered into
fully termed long-form legal documentation with Challenger Energy
Group Plc to acquire TRex Holdings (Trinidad) Limited ("TRex")
subject to regulatory approvals and consents. TRex holds an 83.8%
interest in the Cory Moruga Licence which includes the Snowcap-1
oil discovery. The terms of the Acquisition include acquiring 100%
of the issued share capital of TRex.
A Condition Precedent for Completion of the Transaction is that
the Ministry of Energy and Energy Industries ("MEEI") agrees to a
revised work programme for the Cory Moruga Production Licence to
focus on the application of CO2 EOR and an appraisal/development
well in 2024. The MEEI would also need to agree to a waiver of past
dues and claims in respect of the Cory Moruga Production Licence
such that TRex is free of all liabilities at Completion. Therefore
the Company would not be inheriting any outstanding financial
liabilities but would be instead committing to a new work programme
for Cory Moruga with the MEEI involving a new CO2 EOR project.
The Long-stop Date for Completion of the Acquisition to occur
was 31 August 2023. Post the period under review the Long-stop Date
has been extended to 30th November 2023. Dialogue with MEEI is
continuing and final negotiations regarding the treatment of the
historical TRex liabilities is expected to be successfully
completed paving the way for Completion to occur before the amended
Long-stop Date of 30 November 2023.
The Gross Consideration for the Acquisition is US$9 million.
The Cash Consideration is US$3 million payable in 3 stages -
US$1.0 million on Completion; US$1.0 million 6 months after
Completion; and US$1.0 million once production from Cory Moruga
reaches 100 bopd.
Post the period under review the Company has sufficient funding
to execute the acquisition of TRex within the next 12 months if
required
The remaining US$6 million of Gross Consideration is offset
against TRex's Cory Moruga Production Licence liabilities which,
conditional on MEEI consent, POGT is converting into a new work
programme which includes CO2 EOR. These liabilities are reported as
US$4.6 million in the CEG Interim Results for the Period Ending 30
September 2022. Loans receivable from FRAM under the Inniss-Trinity
Well Participation Agreement totalling of GBP659,504 in respect of
the Inniss-Trinity CO2 EOR project comprising US$360,096 advanced
as cash and US$402,120 and GBP26,461 advanced as equipment would be
written off. The balance of the US$6 million remaining represents a
nominal cost for supplying the CO2 EOR expertise and know-how to
facilitate the planning and execution of the historical
Inniss-Trinity CO2 EOR Project.
It was decided by the Directors that the FRAM Loan was not to be
provided for until the outcome of the MEEI's consent process for
the acquisition of TRex by the Company had been announced in 2023.
Whilst the Acquisition is conditional on the consent of the MEEI
the Company has a reasonable expectation that consent will be
granted based on its ability to offer CO2 EOR as a development
option. No other company in Trinidad can currently offer the MEEI
this short-term option.
The Gross Consideration of US$9 million was based on the P50
gross recoverable resources for the Herrera #8 Sand only of
1,823,925 barrels of oil (1,528,449 net to TRex) as defined in the
Snowcap 2018 Field Development Plan ("FDP") submitted by TRex to
the MEEI in 2018 following a Declaration of Commerciality for the
Snowcap-1 discovery well made by PAREX Resources in 2015. The FDP
indicated gross plateau oil production of 96,600 barrels of oil per
annum (80,950 net to TRex) based on average gross production of 256
bopd (215 bopd net to TRex). Undiscounted netbacks after all
royalties and taxes at WTI US$65 was demonstrated to be US$18.3/bo.
On the basis of the FDP the Cory Moruga Production Licence was
awarded TRex, who had acquired all the issued share capital of
PAREX.
The Company recognised considerable upside in Cory Moruga. PAREX
had indicated gross P50 recoverable oil resources for seven Herrera
Sands not included in the FDP, but which tested oil in the
Rochard-1 well in Cory Moruga Licence and in the adjoining Moruga
West Field, of 18.5 million barrels (15.5 mm net to TRex).
The Company's CO2 EOR experience in the Inniss-Trinity Field,
which produces from the same Herrera reservoirs, suggests that well
delivery rates and ultimately recoverable oil could be
significantly increased through the application of CO2 EOR.
Upon consent being granted by MEEI and completion of the
Transaction with CEG, the Company will have a commitment to pay CEG
US$1,000,000 on Completion from existing cash resources post the
period under review.
Considering the Going Concern requirement, the Directors' do not
foresee a projected working capital shortfall within the next 12
months. However, if cash was required to be preserved then the
Directors would institute a programme of cuts to Directors' and
consultants' remuneration and other third-party corporate costs.
For any discretionary projects deemed to create potential value for
shareholders requiring additional funding, Directors on a
case-by-case basis, would seek to raise additional funds in the
equity markets during periods of favourable market conditions.
The Company has no debt.
The Directors do not believe that either a resurgence of COVID
or Brexit will adversely influence the Group's business development
strategy. If the need were to arise, operations in Morocco can be
maintained by relying on the operating practices established during
COVID-19. Brexit will only create more uncertainty for Ireland's
security of gas supply, thereby enhancing the Company's Irish
projects by creating alternative sources of gas not tied to the
UK-Ireland gas transmission infrastructure.
Monetisation of assets may become possible as the oil and gas
sector becomes more attractive for investors and corporate
transactions to secure material gas assets.
The directors having made due and careful enquiry, are of the
opinion that the Group has adequate working capital to execute its
operational commitments over the next 12 months assuming current
spending commitments will prevail. The Group, therefore, will
continue to adopt the going concern basis in preparing the Interim
Report and Financial Statements.
Cyclicality
The interim results for the six months ended 30 June 2023 are
not necessarily indicative of the results to be expected for the
full year ending 31 December 2023. Due to the nature of the entity,
the operations are not affected by seasonal variations at this
stage.
New Standards adopted at 1 January 2023
There are no accounting pronouncements which have become
effective from 1 January 2023 that have a significant impact on the
Group's interim condensed consolidated financial statements.
Significant accounting policies
The accounting policies applied by the Group in these
half-yearly results are the same as those applied by the Group in
its consolidated financial information in its 2022 Annual Report
and Accounts.
Areas of estimates and judgement
When preparing the Group's consolidated interim financial
statements, management undertakes a number of judgements, estimates
and assumptions about recognition and measurement of assets,
liabilities, income and expenses. The actual results may differ
from the judgements, estimates and assumptions made by management,
and will seldom equal the estimated results.
The judgements, estimates and assumptions applied in the Group's
consolidated interim financial statements, including the key
sources of estimation uncertainty, were the same as those applied
in the Group's last annual financial statements for the year ended
31 December 2022.
Foreign currencies
The functional currency of the Group and all of its subsidiaries
is the British Pound Sterling.
Transactions entered into by Group entities in a currency other
than the currency of the primary economic environment in which it
operates (the "functional currency") are recorded at the rates
ruling when the transactions occur. Foreign currency monetary
assets and liabilities are translated at the rates ruling at the
date of the statement of financial position. Exchange differences
arising on the retranslation of unsettled monetary assets and
liabilities are similarly recognised immediately in profit or loss,
except for foreign currency borrowings qualifying as a hedge of a
net investment in a foreign operation.
1 Financial risk management
The Board continually assesses and monitors the key risks of the
business. The key risks that could affect the Group's medium-term
performance and the factors that mitigate those risks have not
substantially changed from those set out in the Group's 2022 Annual
Report and Financial Statements, a copy of which is available from
the Group's website: www.predatoroilandgas.com. The key financial
risks are market risk (including cash flow interest rate risk and
foreign currency risk), credit risk and liquidity.
2 Segmental analysis
The Group operates in one business segment, the exploration,
appraisal and development of oil and gas assets. The Group has
interests in four geographical segments being Africa (Morocco),
Europe (Ireland), Caribbean (Trinidad and Tobago) and Corporate
(Jersey).
Operating segments are disclosed below on the basis of the split
between exploration and development and administration and
corporate.
Europe Caribbean Africa Corporate
For the 6 months to 30 June GBP GBP GBP GBP
2023
------------------------------- --------- ---------- ------------ ------------
Gross Loss
- Administrative and overhead
expenses (45,782) (5,059) 171,610 (2,431,444)
- Depreciation nil nil nil (1,218)
- Finance expense nil nil nil (49,590)
- Taxation nil nil (238) nil
Loss for the period from
continuing operations (45,782) (5,059) 171,372 (2,482,252)
=============================== ========= ========== ============ ============
Total reportable segment nil nil 11,440,803 nil
intangible assets
Total reportable segment
non-current assets nil nil nil 2,230
Total reportable segment
current assets nil 630,577 1,335,744 2,670,689
Total reportable segment
assets nil 630,577 12,776,547 2,672,919
=============================== ========= ========== ============ ============
Total reportable segment
liabilities (10,500) (4,574) (1,851,249) (2,101,546)
=============================== ========= ========== ============ ============
Europe Caribbean Africa Corporate
For the 6 months to 30 June GBP GBP GBP GBP
2022
------------------------------- ---------- ---------- ---------- ----------
Gross Loss
- Administrative and overhead
expenses (118,621) (40,945) (420,341) (18,664)
- Depreciation nil nil nil (1,218)
Loss for the period from
continuing operations (118,621) (40,945) (420,341) (19,882)
=============================== ========== ========== ========== ==========
Total reportable segment nil nil 2,857,991 nil
intangible assets
Total reportable segment
non-current assets nil nil nil 4,666
Total reportable segment
current assets 2,717 659,621 1,245,422 1,547,485
Total reportable segment
assets 2,717 659,621 4,103,413 1,552,151
=============================== ========== ========== ========== ==========
Total reportable segment
liabilities (7,191) nil (28,129) (91,689)
=============================== ========== ========== ========== ==========
There are no non-current assets held in the Group's country of
domicile, being Jersey, Channel Islands (2022: GBPnil).
30.06.2023 30.06.2022
(unaudited) (unaudited)
3 Administrative expenses GBP GBP
---------------------------------- ------------ ------------
Technical Consultancy fees (i) 42,657 64,504
Listing costs 71,733 56,971
AIM listing costs - 40,488
Project Allosaurus 117,000 -
Broker fees 12,500 23,472
Directors fees 138,000 182,699
Share based payments - options 1,444,227 131,297
Administration fees 77,602 55,946
Bank charges 27,405 26,224
Legal and professional fees 91,077 69,722
Travel expenses 22,583 76,166
Non-executive director fees 47,004 60,830
Computer/system costs/IT support 6,886 2,130
Insurance 46,545 33,415
Sundry expenses 4,968 1,369
Annual return fee 1,350 665
Depreciation 1,218 1,218
Website costs 1,153 2,203
Foreign exchange 127,385 (243,530)
Audit fee 30,600 14,000
2,311,893 599,789
---------------------------------- ------------ ------------
(i) During the period ended 30 June 2023, all Executive
Directors' technical consultancy fees for Predator Gas Ventures
Limited were capitalised accordingly.
30.06.2023 30.06.2022
4 Loss per share (unaudited) (unaudited)
----------------------------------------------------- ------------ ------------
Weighted average number
of shares 398,787,674 273,377,468
Loss attributable to ordinary equity holders
of the company (2,361,721) (599,789)
Total basic and diluted loss per share attributable
to the ordinary equity holders (pence) (0.592) (0.219)
------------------------------------------------------ ------------ ------------
Diluted loss per Ordinary share equals basic loss per ordinary
share as, due the losses incurred in 2023 and 2022, there is no
dilutive effect from the subsisting share options.
5 Intangible asset MOU-1 MOU-2 MOU-3 MOU-4 Total
----------------------- ---------- ---------- ---------- ---------- -----------
Gross carrying amount
Balance at 1 January
2023 2,860,900 2,414,820 - - 5,275,720
Additions 56,500 2,019,113 2,654,845 1,434,625 6,165,083
Balance at 30 June
2023 2,917,400 4,433,933 2,654,845 1,434,625 11,440,803
----------------------- ---------- ---------- ---------- ---------- -----------
Depreciation and
impairment
Balance at 1 January - - - - -
2023
Depreciation - - - - -
Balance at 30 June - - - - -
2023
----------------------- ---------- ---------- ---------- ---------- -----------
Carrying amount
31 December 2022 2,860,900 2,414,820 - - 5,275,720
----------------------- ---------- ---------- ---------- ---------- -----------
Carrying amount
30 June 2023 2,917,401 4,433,933 2,654,845 1,434,625 11,440,803
----------------------- ---------- ---------- ---------- ---------- -----------
Due to the significant work done in the period with regards to
the number of wells in Morocco, it was decided to reflect the costs
on a 'well by well' basis, as this will provide greater clarity on
each of the assets.
All costs relating to Project Guercif have been capitalised and
will be depreciated once gas discovery is declared commercial and a
Plan of Development has been approved.
The Directors have undertaken an assessment of the following
areas and circumstances that could indicate the existence of
impairment:
-- The Group's right to explore in an area has expired, or will
expire in the near future without renewal;
-- No further exploration or evaluation is planned or budgeted for;
-- A decision has been taken by the Board to discontinue
exploration and evaluation in an area due to the absence of a
commercial level of reserves; or
-- Sufficient data exists to indicate that the book value will
not be fully recovered from future development and production.
30.06.2023 31.12.2022
(unaudited) (audited)
6 Trade and other receivables GBP GBP
----------------------------------------- ------------ -----------
Current
Security deposit (US$1,500,000) (i) 1,188,863 1,245,795
Loans receivable (ii) 630,575 659,504
Prepayments and other receivables (iii) 1,817,566 81,371
3,637,004 1,986,670
----------------------------------------- ------------ -----------
(i) The Company's subsidiary, Predator Gas Ventures Limited, on
19 March 2019, provided a bank guarantee of US$1.5 million to
Office National des Hydrocarbures et des Mines, who act for the
Moroccan State, as a condition of being granted the Guercif
exploration licence. Predator Gas Ventures Limited was required to
lodge a security deposit of US$1.5 million with Barclays Bank Plc
to secure the guarantee facility. ONHYM have agreed that the
US$1,500,000 bank guarantee for the Initial Exploration Period be
rolled over to the First Extension Period to replace the
requirement for an increased US$3,646,000 bank guarantee.
The restricted access cash balance of GBP1,188.863 represents
the aforesaid security deposit and is denominated in US Dollars.
These funds are refundable on the completion of the Minimum Work
Programme set out in the terms of the Guercif Petroleum Agreement
and Association Contract. All other receivables are denominated in
Pound Sterling.
(ii) As at the year ended 30 June 2023 GBP630,575 (2022:
GBP654,073) comprises of:
-- US$360,096 (2022: US$360,096) advanced as cash in line with a
loan agreement signed and dated 24 July 2019 and subsequent 5
addendums (2022: 5 addendums); and
-- US$402,120 and GBP26,461 (2022: US$402,120, GBP26,461)
advanced as equipment.
The loans were advanced to provide FRAM Exploration Trinidad
Ltd. ("FRAM"), a wholly owned subsidiary of
Challenger Energy Group Plc ("Challenger") with funds for the
purpose of meeting their Inniss-Trinity CO2 EOR project expenses.
The original terms of the loans were that they were unsecured,
interest free and were repayable at the discretion of Predator Oil
& Gas Trinidad Limited ('POGT') provided not less than a notice
of 7 working days is given but in any event were repayable from one
hundred percent of profits generated by the Inniss-Trinity pilot
CO2 EOR project prior to a 50:50 profit split between POGT and
FRAM.
During the period under review the Company has entered into
fully termed long-form legal documentation with Challenger to
acquire 100% of the issued share capital of TRex Holdings
(Trinidad) Limited ("TRex") subject to regulatory approvals and
consents. TRex holds an 83.8% interest in the Cory Moruga Licence
which includes the Snowcap-1 oil discovery. A condition precent for
completion of the transaction is that the Ministry of Energy and
Energy Industries ("MEEI") agrees to a revised work programme for
the Cory Moruga Production Licence involving a new CO2 EOR project
and the drilling of one well provisionally in 2024. The MEEI would
also need to agree to a waiver of past dues and claims in respect
of the Cory Moruga Production Licence such that TRex is free of all
liabilities at Completion. Final negotiations regarding the
treatment of the historical TRex liabilities is expected to be
completed during September paving the way for Completion to occur
before long-stop date of 30 November 2023 (as amended from 31
August 2023 post the period under review).
The principal monetary elements of the Transaction include:
-- A cash consideration of US$3 million payable in 3 stages -
US$1.0 million on Completion; US$1.0 million 6 months after
completion; and US$1.0 million once production from Cory Moruga
reaches 100 bopd.
-- A write-off of TRex's Cory Moruga Production Licence
liabilities, estimated at US$4.6 million, which, conditional on
MEEI consent, POGT is converting into a new work programme which
includes CO2 EOR.
-- A write-off of the aforesaid loans receivable from FRAM
totalling of GBP630,575 in respect of the Inniss-Trinity CO2 EOR
project.
It was decided by the Directors that the FRAM Loan was not to be
provided for until the outcome of the MEEI's consent process for
the acquisition of TRex by the Company had been announced in 2023.
Whilst the Acquisition is conditional on the consent of the MEEI
the Company has a reasonable expectation that consent will be
granted based on its ability to offer CO2 EOR as a development
option.
(iii) Other receivables include an amount of GBP1,769,100 in
respect of the placing on 28 June 2023. The funds were received in
two tranches, on 6 and 12 July 2023.
30.06.2023 30.06.2022 31.12.2022
(unaudited) (unaudited) (audited)
7 Cash and cash equivalents GBP GBP GBP
----------------------------- ------------ ------------ -----------
Pound Sterling 378,404 1,023,352 2,108,557
Euros 18,299 1,059 28,168
United States Dollar 503,366 516,162 830,810
Moroccan Dirham 99,937 8,861 355,626
1,000,006 1,549,434 3,323,161
----------------------------- ------------ ------------ -----------
Number Value
8 Share capital of shares GBP
------------------------- ------------ -----------
Issued and fully paid
Opening Balance 383,759,189 16,840,165
9 March 2023
Warrants exercised 2,035,714 79,500
3 April 2023
Share issue (i) 14,174,056 2,000,000
12 May 2023
Share options exercised 19,112,049 1,596,986
12 May 2023
Share issue 2,500,000 142,500
26 May 2023
Share issue 3,822,410 217,879
26 May 2023
Share options exercised 1,000,000 50,000
426,403,418 20,927,030
------------------------- ------------ -----------
(i) On the share placing dated 3 April 2023 for a total of
36,363,636 shares of no par value, only 14,174,056 were shares
considered to be issued, the other 22,189,580 were lent by Paul
Griffiths, a Director of the Company.
30.06.2023 30.06.2022 31.12.2022
(unaudited) (unaudited) (audited)
9 Trade and other payables GBP GBP GBP
---------------------------- ------------ ------------ -----------
Current
Trade payables 1,962,260 81,338 679,138
Accruals 60,686 45,671 61,183
Directors' loans (i) (ii) 1,944,923 - 512,931
3,967,869 127,009 1,253,252
---------------------------- ------------ ------------ -----------
(i)
On 24 November 2022, the executive directors of the Company
exercised share options to raise GBP1,256,880 to further develop
the asset portfolio.
However, as the Company was unable to issue sufficient shares to
fund this program without publishing a FCA approved prospectus, the
executive directors Paul Griffiths and Lonny Baumgardner, with the
approval of the independent non-executive Board members and Novum
Securities Limited, agreed to place their 15,710,972 New Ordinary
Shares, resulting from the exercised share options, at a price of
GBP0.08 to raise GBP1,256,877 before expenses of GBP92,981.
A back-to-back loan arrangement between the Directors and the
Company enabled the Company to utilise all of the net proceeds
after expenses (GBP749,276 from the exercise of the options and a
directors' loan ("Loan") of GBP507,604) from the placing of the
Directors' exercised share options to fund the further maturing of
all of its asset portfolio.
The loan with the executive directors incurred interest at a
rate of 4%. Total interest accrued for the period ended 30 June
2023 was GBP18,894 (2022: GBPnil).
On 22 May 2023, the executive directors exercised 3,401,077
share options dated 9 November 2022 at a price of GBP0.10 and
15,710,972 share options dated 23 November 2022 of GBP0.08. As a
result of both transactions, the Company was due GBP1,596,985.
Concurrently with the share options being exercised, the shares
were used for a placing of 19,112,049 shares at a placing price of
GBP0.057, resulting in a total placing funds of GBP1,089,387. The
difference of GBP507,598 was used to settle both capital balances
on the directors loans.
These loans had to be repaid within one year of the date of the
agreements. The balances owed by the company including interest
were fully settled on 18 August 2023.
(ii)
On 28 June 2023, the executive directors lent the Company a
total of 18,000,000 ordinary shares to be sold to the market by
Novum.
The shares were to be placed at GBP0.105 each, resulting in a
total funds owed to the directors of GBP1,890,000. This was to be
allocated based on each of the directors shares lent.
Paul Griffiths lent the company a total of 17,500,000, resulting
in a loan totalling GBP1,837,500, whilst Lonny Baumgardner lent the
Company a total of 500,000 shares resulting in a loan of
GBP52,500.
The loan with the executive directors incurred interest at a
rate of 4% above Sonia. Total interest accrued for the period ended
30 June 2023 was GBP1,387 (2022: GBPnil).
The loans are due to be repaid within one year of the agreement
date, with the interest rate being increased to 12%, should the
Company default. It is expected that the loan is to be repaid by
returning the shares lent of 18,000,000.
These loans had to be repaid within one year of the date of the
agreements. The balances owed by the company including interest
were fully settled on 18 August 2023.
10 Other reserves
30.06.2023 31.12.2022
Warrants issuance cost (unaudited) (audited)
reserve
No of warrants GBP GBP
---------------------------- --------------- ------------ -----------
Balance brought forward 9,564,232 (583,825) (376,820)
Issue of warrants 5,042,230 (210,155) (436,452)
Exercised warrants at fair
value (2,035,714) 44,142 187,127
Cancelled and/or expired
warrants (2,318,750) 47,057 42,320
Balance carried forward 10,251,998 (702,781) (583,825)
----------------------------- --------------- ------------ -----------
Share based payments 30.06.2023 31.12.2022
reserve
(unaudited) (audited)
No of share GBP
options
------------------------- ------------- ------------ -----------
Balance brought forward 40,360,972 1,379,964 611,173
Issue of warrants 22,112,049 210,155 436,452
Extension of warrants
exercise date - - 13,204
Cancelled share options - - -
Fair value expense of
share options - 1,444,228 1,234,880
Share options exercised (20,112,049) (874,015) (728,618)
Warrants exercised - (44,142) (187,127)
Balance carried forward 42,360,972 2,116,190 1,379,964
-------------------------- ------------- ------------ -----------
11 Share based payments
Share options
The Group operates a share option plan for directors. During the
period the below share options were issued:
Paul Griffiths
Share options issued during the period:
On 12 May 2023, the Company issued 3,328,119 share options at an
exercise price of 10.0p. The share options are exercisable from 13
May 2023.
On 12 May 2023, the Company issued 7,855,486 share options at an
exercise price of 8.0p. The share options are exercisable from 13
May 2023.
Share options exercised during the period:
On 12 May 2023, the below share option agreements were
exercised:
-- Share options agreement dated 9 November 2022 - 3,328,119 were exercised at 10.0p each
-- Share options agreement dated 23 November 2022 - 7,855,486 were exercised at 8.0p each
Share options held as at period end:
-- Share options agreement dated 9 November 2022 - 4,171,881
share options at an exercise price of 10.0p.
-- Share options agreement dated 12 May 2023 -3,328,119 share
options at an exercise price of 10.0p.
-- Share options agreement dated 12 May 2023 - 7,855,486 share
options at an exercise price of 8.0p.
Lonny Baumgardner
Share options issued during the period:
On 12 May 2023, the Company issued 72,958 share options at an
exercise price of 10.0p. The share options are exercisable from 13
May 2023.
On 12 May 2023, the Company issued 7,855,486 share options at an
exercise price of 8.0p. The share options are exercisable from 13
May 2023.
Share options exercised during the period:
On 12 May 2023, the below share option agreements were
exercised:
-- Share options agreement dated 9 November 2022 - 72,958 were exercised at 10.0p each
-- Share options agreement dated 23 November 2022 - 7,855,486 were exercised at 8.0p each
Share options held as at period end:
-- Share options agreement dated 9 November 2022 - 7,427,042
share options at an exercise price of 10.0p.
-- Share options agreement dated 12 May 2023 - 72,958 share
options at an exercise price of 10.0p.
-- Share options agreement dated 12 May 2023 - 7,855,486 share
options at an exercise price of 8.0p.
Alistair Jury
Share options issued during the period:
There were no share options issued during the period.
Share options exercised during the period:
No share options were exercised during the period.
Share options held as at period end:
-- Share options agreement dated 5 July 2022 - 2,000,000 share
options at an exercise price of 8.125p.
Carl Kindinger
Share options issued during the period:
There were no share options issued during the period.
Share options exercised during the period:
No share options were exercised during the period.
Share options held as at period end:
-- Share options agreement dated 9 November 2022 - 2,000,000
share options at an exercise price of 7.75p.
Moyra Scott
Share options issued during the period:
On 29 March 2023, the Company issued 3,000,000 share options at
an exercise price of 10.0p. The share options are exercisable from
30 September 2023.
Share options exercised during the period:
No share options were exercised during the period.
Share options held as at period end:
-- Share options agreement dated 29 March 2023 - 3,000,000 share
options at an exercise price of 10.0p.
Louis Castro
Share options issued during the period:
There were no share options issued during the period.
Share options exercised during the period:
On 22 May 2023, 1,000,000 shares were exercised at 5.0p each in
accordance with share options agreement dated 27 October 2020.
Share options held as at period end:
-- Share options agreement dated 31 January 2022 - 1,000,000
share options at an exercise price of 5.6p.
Steve Staley
Share options issued during the period:
There were no share options issued during the period.
Share options exercised during the period:
There were no share options exercised during the period.
Share options held as at period end:
-- Share options agreement dated 27 October 2020 - 1,650,000
share options at an exercise price of 5.0p.
Tom Evans
Share options issued during the period:
There were no share options issued during the period.
Share options exercised during the period:
There were no share options exercised during the period.
Share options held as at period end:
-- Share options agreement dated 5 July 2022 - 2,000,000 share
options at an exercise price of 8.125p.
The Board is not planning to consider any other components of
director remuneration during the period under review.
The Black Scholes model has been used to fair value the options,
the inputs into the model were as follows:
Grant date May 2023 May 2023 March
(1) (1) 2023
--------------------------------- --------------- --------------- ----------
Share price GBP0.0660 GBP0.0660 GBP0.0720
Exercise price GBP0.0800 GBP0.1000 GBP0.1000
Term Not applicable Not applicable 6 months
Expected volatility 148% 148% 148%
Expected dividend yield 0% 0% 0%
Risk free rate 3.59% 3.59% 3.45%
Fair value per option GBP0.0000 GBP0.0000 GBP0.0224
Total fair value of the options GBP0 GBP0 GBP67,322
---------------------------------- --------------- --------------- ----------
(1)
These share options were granted by the Company to the executive
directors for prematurely exercising their share option incentives
and subsequently selling those Option Exercise Shares to investors
and for capitalising the Loans to their disadvantage.
The total share option expense released for the period ended 30
June 2023 is GBP1,444,227 (2022: GBP131,297) and relates to the
below:
-- Share options issued during the period - GBP67,322
-- Share options issued in prior periods - GBP715,518
-- Share options exercised during the period not yet fully released- GBP661,387
Warrants
During the period, the Company has granted the below warrants to
Novum Securities Limited ("Novum").
-- On 16 March 2023, 2,181,818 warrants were issued exercisable
at 5.5p, which were based on 6% of the total share placing of
36,363,636 shares. The Warrants have an expiry date of 17 March
2026.
-- On 12 May 2023, 1,780,412 warrants were issued exercisable at
5.7p, which were based on 7% of the total share placing of
25,434,459 shares. The Warrants have an expiry date of 11 May
2026.
-- On 28 June 2023, 1,080,000 warrants were issued exercisable
at 10.5p, which were based on 6% of the total share placing of
18,000,000. The Warrants have an expiry date of 28 June 2026.
The total warrant agreements for the aforesaid 5,042,230
warrants issued during the period ended 30 June 2023 do not contain
vesting conditions and therefore the full share based payment
charge, being the fair value of the warrants using the
Black-Scholes model, has been recorded immediately.
As at the period ended 30 June 2023, the total number of
warrants in issue are:
1. On 12 March 2021 1,020,000 warrants were issued to Novum
Securities Limited exercisable at 10.5p with an initial expiry date
of 12 March 2024, which was extended by a further year to 12 March
2025. As at 30 June 2023, no warrants have been exercised, with the
outstanding exercisable warrants being 1,020,000.
2. On 18 June 2021 600,000 warrants were issued to Novum
Securities Limited exercisable at 15p with an initial expiry date
of 18 June 2024, which was extended by a further year to 18 June
2025. As at 30 June 2023, no warrants have been exercised, with the
outstanding exercisable warrants being 600,000.
3. On 28 March 2022 690,000 warrants were issued to Novum
Securities Limited exercisable at 9.0p with an initial expiry date
of 28 March 2025. As at 30 June 2023, no warrants have been
exercised, with the outstanding exercisable warrants being
690,000.
4. On 23 August 2022 3,600,000 warrants were issued to Novum
Securities Limited exercisable at 5.5p with an initial expiry date
of 23 August 2025. As at 30 June 2023, 1,800,000 warrants have been
exercised, with the outstanding exercisable warrants being
1,800,000.
5. On 23 November 2022 1,099,768 warrants were issued to Novum
Securities Limited exercisable at 8.0p with an initial expiry date
of 23 November 2025. As at 30 June 2023, no warrants have been
exercised, with the outstanding exercisable warrants being
1,099,768.
6. On 16 March 2023 2,181,818 warrants were issued to Novum
Securities Limited exercisable at 5.5p with an initial expiry date
of 16 March 2026. As at 30 June 2023, no warrants have been
exercised, with the outstanding exercisable warrants being
2,181,818.
7. On 12 May 2023 1,780,412 warrants were issued to Novum
Securities Limited exercisable at 5.7p with an initial expiry date
of 12 May 2026. As at 30 June 2023, no warrants have been
exercised, with the outstanding exercisable warrants being
1,780,412.
8. On 28 June 2023 1,080,000 warrants were issued to Novum
Securities Limited exercisable at 10.5p with an initial expiry date
of 28 June 2026. As at 30 June 2023, no warrants have been
exercised, with the outstanding exercisable warrants being
1,080,000.
During the period ended 30 June 2023, the total number of
warrants exercised are:
-- On 6 March 2023, 160,714 warrants issued to Optiva Securities
Limited dated 24 May 2018 were exercised at 2.8p.
-- On 6 March 2023, 1,875,000 warrants issued to Optiva
Securities Limited dated 17 February 2020 were exercised at
4.0p.
The valuation of these warrants involves making a number of
estimates relating to price volatility, future dividend yields and
continuous growth rates.
The Black Scholes model has been used to fair value the
warrants, the inputs into the model were as follows:
28 June 12 May 16 March
Grant date 2023 2023 2023
------------------------- ---------- ---------- ----------
Share price GBP0.1100 GBP0.0658 GBP0.0620
Exercise price GBP0.1050 GBP0.0570 GBP0.0550
Term 3 years 3 years 3 years
Expected volatility 80% 80% 80%
Expected dividend yield 0% 0% 0%
Risk free rate 4.39% 4.38% 3.45%
Fair value per warrants GBP0.061 GBP0.038 GBP0.035
Total fair value of the GBP65,923 GBP67,709 GBP76,523
warrants
========================== ========== ========== ==========
In addition to the total warrants fair value expense of
GBP210,155, a total of GBP47,057 (2022: GBPnil) was recognised in
respect of impact for various warrants having lapsed.
12 Investment in subsidiaries Principal activity Country Ownership
of
incorporation interest
Predator Oil and Gas Licence options in
Ventures Limited offshore Ireland Jersey 100%
Profit rights for
production revenues
Predator Oil &Gas Trinidad from a CO2 enhanced
Limited oil recovery project Jersey 100%
Predator Gas Ventures Exploration licence
Limited onshore Morocco Jersey 100%
Licence application
Mag Mell Energy Ireland to import liquified
Ltd natural gas Jersey 100%
13 Financial instruments
The Group's financial instruments comprise cash and items
arising directly from its operations such as trade receivables and
trade payables.
30.06.2023
(unaudited)
Categorisation of financial GBP
instruments
-------------------------------------------- ------------
Financial assets measured
at amortised cost:
Trade and other receivables 3,631,354
Financial assets that are debt instruments
measured at amortised cost:
Cash and cash equivalents 1,000,006
4,631,540
============
Financial liabilities measured
at amortised cost:
Trade and other payables (3,967,869)
(3,967,869)
============
14 Related party transactions
During the period, the Company incurred costs of EUR52,500
(GBP45,796) which relate to costs payable to Earthware Energy Inc a
company owned by/r elated to Karima Absa, the wife of Lonny
Baumgardner, of which EUR10,500 is owed as at period end.
As at period end, the balance owed to directors for their
services are as follows:
-- Paul Griffiths - GBP72,448 (2022: GBP9,583)
-- Lonny Baumgardner - GBP115,652 (2022: GBP9,583)
-- Alistair Jury - GBP1,888 (GBP3,333)
-- Carl Kindinger - GBP8,683 (GBPnil)
Transactions with key management personnel
Key management of the Group are the board of directors. Key
management personnel remuneration includes the following
expenses:
30.06.2023 30.06.2022 31.12.2022
(unaudited) (unaudited) (audited)
GBP GBP GBP
--------------------------------------- ------------ ------------ -----------
Executive and non-executive directors
including bonuses 360,104 243,529 522,051
Share option scheme 1,444,228 131,297 1,234,880
1,804,332 374,826 1,756,931
--------------------------------------- ------------ ------------ -----------
The average number of personnel
(including directors) during the
period was:
Management - (Executive Directors) 2 2 2
Non-management - (Non-executive
Directors) 2 2 2
4 4 4
======================================= ============ ============ ===========
Four Directors at the end of the period have share options
receivable under long term incentive schemes. The highest paid
Director received an amount of GBP173,152 (2022: GBP107,350). The
Group does not have employees. All personnel are engaged as service
providers.
During the period, there were also various loans with Executive
directors, of which more information can be found on note 9.
15 Subsequent events
-- On the 11 July 2023 the Company announced that the MOU-4 had
been drilled to 1199 metres. The edge of the Jurassic structure had
been penetrated and the well had been completed for rigless
testing.
-- On the 13 July 2023 the Company announced that the NuTech
petrophysical interpretation of the MOU-4 well had highlighted a
number of intervals for rigless testing.
-- On the 1 August 2023 the Company announced that the placing
announced on 31 July 2023 had been over-subscribed and had raised
gross proceeds of GBP10 million through the issue of 90,909,090 new
ordinary shares at GBP0.11.
In connection with the placing 8,318,181 broker warrants were
issued at an exercise price of GBP0.011.
-- On 10 August 2023 the Company published a Secondary
Prospectus (project "Allosaurus") including a Competent Persons
Report by Tracs International Limited.
-- On the 30 August 2023 the Company announced an operations
update including the extension of the Cory Moruga long-stop date
from 31 August 2023 to 30 November 2023 to facilitate completion of
the Cory Moruga transaction.
16 Ultimate controlling party
In the opinion of the Directors there is no ultimate controlling
party as no one individual is deemed to satisfy this
definition.
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END
IR GPUGWBUPWUBB
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