Annual Report for the
Year ended 31 December 2022
Contents
Pages
Chairman’s statement
1 - 4
Strategy
5 - 6
Group strategic report
7 - 50
Report of the directors
51 – 57
Board of directors
58 - 60
Corporate governance report
61 – 67
Directors’ remuneration report
68 – 73
Independent auditor’s report
74 – 80
Consolidated statement of comprehensive income
81
Consolidated statement of financial position
82
Consolidated statement of changes in equity
83
Consolidated statement of cash flows
84
Statement of accounting policies
85 – 91
Notes to the financial statements
92 – 112
Corporate information
113 – 114
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
1
Chairman’s Statement
Dear Shareholder,
On behalf of the Board of Directors, I hereby present the consolidated financial statements of Predator Oil &
Gas Holdings Plc (the “Group”, “Predator” or the “Company”) for the year ended 31 December 2022.
2022 has been dominated by regional conflict caused by the Ukraine – Russia war. This has impacted the
energy sector in a manner that could not have been predicted at the start of the year.
A rapid rise in oil and gas prices has immediately benefited producers but has resulted in higher and
unsustainable prices for end users and consumers so creating an “Energy Crisis”. This has led to an accelerated
rate of cost inflation for services, equipment and personnel in the Energy Sector. Supply chains have been
impacted as demand outstrips supply caused by a combination of high commodity prices acting as a catalyst
for increased activity and a shortage of materials and inventory following a prolonged period of manufacturing
stagnation during COVID-19. Delivery times have been extended out due to scheduling of available
manufacturing capacity and disruption in transport logistics created by competitive forces gazumping pre-
booked cargo space.
On a macro-scale the Energy Crisis has caused frequent and unpredictable volatility in the foreign exchange
markets making currency hedging difficult to enact during periods of relatively short-term operational
expenditure. Investment sentiment in the oil and gas sector from institutions and banks is potentially
tempered by the prospect of windfall taxes to address the large profits being made collectively by the Energy
Sector and the influences being exerted by the proponents advocating a faster transition to greener energy
with an earlier replacement of sources of energy from fossil fuel.
Unfortunately, this has only served to increase the reliance on existing and finite fossil fuel resources and has
helped create the energy crisis, resulting in many business failures. Within Europe there has been a giant leap
to embrace liquefied natural gas imports, a significant proportion of which come from shale gas operations
involving the controversial fracking process. In the Republic of Ireland for example there has been an increase
in the amount of Colombian coal burnt at the Moneypoint power plant increasing Ireland’s already high,
relative to the rest of Europe, CO2 emissions.
During 2022 the importance of gas as the fuel of choice for the Energy Transition has been clearly
demonstrated in Europe and in other areas of the world. Increasing the availability of indigenous gas and
expanding strategic seasonal gas storage facilities under normal circumstances should assist with helping to
stabilise gas prices at an affordable level to both industry and domestic consumers. For this to happen from
grass roots upwards banks and institutions need to pragmatically balance their investment criteria for the
energy sector to promote greener finance yet address inflationary pressures by ensuring the Energy Transition
is adequately funded such that gas projects can contribute positively to an earlier roll-out of green energy
alternatives within the framework of a stable business climate to promote economic growth and social justice.
The Company’s business model has always been focussed on prudent management and deployment of limited
capital funds. For this reason, corporate overheads are maintained at modest levels and the management and
operating structure of the Company utilises only a very limited number of highly experienced personnel whilst
generating the opportunity to efficiently operate and control all of the Company’s projects through a “hands
on” approach. The Company’s strategy and objectives during 2022 have had to be prudently re-focussed and
tailored to align with the changing financial environment.
In Morocco we have navigated the Company through a supply chain crisis of logistics to ensure that at the end
of 2022 we are on the cusp of commencing the drilling of MOU-2, the second well in the area of the Guercif
Petroleum Agreement. There is no other competing drilling activity onshore Morocco at present.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
2
The business development model for Morocco has been focussed on the near-term search for gas to supply
Compressed Natural Gas (“CNG”) by truck to the Moroccan industrial market. This will potentially replace
carbon-intensive imported fuel oil. The characteristics of this business model is that it creates high profit
margins for relatively small volumes of gas to be developed as a consequence of the high prices paid for gas
by the Moroccan industrial sector, even before the Energy Crisis; low taxation; a low level of capital required
to fund development; and a potential for accelerated development decisions and therefore project execution.
Importantly, gas production profiles and deliveries are easily scalable as the market for CNG expands. The
levels of profits are such that they are not likely to attract windfall taxes as in Europe as gas sales price is
matched to what local industry can afford in order to remain competitive. Moroccan industry urgently requires
a secure source of indigenous gas.
Gas-to-power in Morocco is a less attractive business model for the Company as it requires significant initial
capital investment with increased execution risks to validate a 10-year gas profile for a Gas Sales Contract with
the State-owned National Office of Electricity (“ONEE”). Prices paid by ONEE for gas are far less attractive than
those paid by Moroccan industry. Profit margins are therefore poorer relative to the CNG business model.
The technical evaluation of the very large area of the Guercif Petroleum Agreement to date has identified
many gas prospects with some that were partially de-risked by gas encountered in MOU-1, drilled and
completed for testing by the Company in 2021. Appraising the MOU-1 structure eastwards to support a
scalable CNG development is the single most important objective of the Company to achieve during 2023.
Following the unforeseen decommissioning of the successful Inniss-Trinity Enhanced Oil Recovery and CO2
sequestration project (“CO2 EOR”) in Trinidad in 2021, a move not instigated by the Company, the Company
has sought to reach a pragmatic agreement with Challenger Energy Group Plc (“Challenger”), the parent
company of FRAM Exploration Trinidad Ltd. (“FRAM”) to address outstanding commercial issues. The
Company’s primary objective was to seek to leverage its investment, technical collateral and operating
experience gained during the initiation and development of the Inniss-Trinity CO2 EOR project to expand its
CO2 EOR operating capability. This is seen as a mandatory business goal to allow the Company to effectively
utilise and further extend its exclusive surplus liquid CO2 supply agreement with Massy Gas Products Trinidad
Ltd. (“Massy”) and to capitalise on Trinidad’s newly adopted government strategy to promote CO2 EOR in
combination with developing a CO2 sequestration regulatory framework based mainly on UK and Canadian
legislation.
At the end of the year the Company announced that it had reached agreement, subject to contract and the
regulatory approval of the Ministry of Energy and Energy Industries (“MEEI”) in Trinidad, to acquire TRex
Resources (Trinidad) Ltd. (“TRex”) from its parent company Challenger. TRex is the operator of the Cory
Moruga Licence (“Cory Moruga”), onshore Trinidad. TRex is a natural fit with Predator.
Cory Moruga contains the undeveloped Snowcap oil field. As such it represents one of the few opportunities
in Trinidad to apply CO2 EOR techniques in an early phase of field development before virgin reservoirs
pressures have declined as a result of continuous production over a long period of time, as is the issue with
mature onshore oil fields in Trinidad. The opportunity to create a secondary miscible CO2 EOR project is
possible in Cory Moruga in due course after an initial period of primary production to facilitate an improved
understanding of reservoir performance.
After reviewing several options for developing its CO2 EOR business in Trinidad during the year under review
the Company believes that the better way forward to improve the opportunity to develop potentially
significant shareholder value is through directly owning and operating the Cory Moruga asset. This is based on
our understanding of the unrealised subsurface potential of Cory Moruga through management combining
both its experience gathered as a result of operating the Inniss-Trinity CO2 EOR project; its operational
expertise in drilling extremely challenging wells in similar geology to Cory Moruga in Morocco; and its highly
relevant reservoir insights gathered for the adjoining producing Moruga West oil field, for which the Company
made a bid for in 2017 before becoming a public company. This field extends into Cory Moruga and was the
subject of a very successful gas injection project executed by the previous operator, BP, in the early 1960’s.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
3
The Company is looking forward to completing an independent Competent Persons Report on Cory Moruga in
the first half of 2023 incorporating and validating a new subsurface understanding generated in-house by the
Company.
The Energy Crisis has been beneficial in bringing to the attention of the regulatory authorities in Ireland the
valuable contribution that the Company’s Mag Mell Floating Storage and Regassification Project (“FSRU”) and
its applications for successor authorisations, focussed on gas storage and gas exploration and appraisal to
utilise the existing Corrib and Kinsale gas pipelines to shore, could potentially make to securing Ireland’s
security and affordability of gas supply.
A ban on new oil and gas licences was enacted in Ireland before the current Energy Crisis. As a result, the
Company’s gas projects represent valuable potential assets and collateral as they remain linked to an existing
regulatory process. In particular, they could provide in time, an indigenous source of expensive “cushion gas”
to establish strategic gas storage facilities to align Ireland with the rest of Europe. Currently such gas would
require to be imported.
The Company does not have the capacity to fully develop these assets to a future production status on a
standalone basis. However, with opportunities to further develop the gas business in Ireland and to utilise
growing spare capacity in existing infrastructure now at a premium, our position in Ireland becomes potentially
attractive to existing entities involved in the gas sector. Should the Company relinquish its position then the
opportunity for others would fall away, potentially for ever.
We are pleased therefore to have received an unsolicited approach at the end of the year to potentially acquire
our position in relation to the Corrib South exploration asset, which is the subject of an application for a
successor authorisation. Whilst there are still many regulatory and political hurdles to be crossed in Ireland,
we believe that this approach now sets a precedent with the regulatory authorities regarding the potential
value of Corrib South and the possible consequences of not awarding the Corrib South successor authorisation
in accordance with the existing regulatory process.
During the period under review, we have taken the opportunity, when possible and advisable to do so, to raise
funds in the public markets. This is not only necessary for us to maintain our projects in good standing but
mainly to strengthen our ability to progressively develop our assets within a new economic climate that can
no longer rely on traditional farmouts to industry majors, bank lending and institutional investment for funding
business growth. The institutionalised move to green energy discriminates against entrepreneurial small and
mid-tier companies in the oil and gas sector that are seeking to facilitate the Energy Transition. The Company
strengthened its finances through two over-subscribed Placings to raise an aggregate of GBP4,335,000 (before
expenses). As a consequence, the Company remains debt-free at a time of rising interest rates apart from loans
to directors.
At a corporate level the Board was refreshed with two new Non-Executive Directors joining the Board, Carl
Kindinger, and Alistair Jury replacing Louis Castro and Dr Stephen Staley.
As I write, the business outlook for the Company for the coming year remains positive despite the new global
challenges faced by businesses during the year under review. The Company’s projects are robust and
strategically focussed on gas and developing a commercial model for CO2 sequestration. Our projects are of a
manageable size that still attracts prudent levels of equity finance based on clear near-term operational and
corporate objectives that we have still managed to execute during the year to enhance their appeal to
investors. Drilling drives the quest to create tangible shareholder value whilst sustained corporate activity and
careful portfolio management sow the seeds necessary to create near-term revenue-generating opportunities.
This strategy allows our stock to be liquid and attractive to investors which in turn provides the Company with
an avenue of funding to develop its projects through the difficult early stages of financing.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
4
I should like to thank our shareholders for their continued support over the year. I expect the coming year
once again to be full of activity with operations prudently scaled up to increase the ability to reach a revenue-
generating position as soon as possible.
Paul Griffiths
Executive Chairman
27 April 2023
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
5
Strategy
The Company’s core strategy continues to focus on the Energy Transition to greener energy. The pragmatic
role of gas is recognised as a “sustainable” source of energy to bridge the gap between the expectations of a
green energy goal versus the economic and socially equitable reality of preserving an orderly and affordable
energy market during what might be perceived as a new industrial revolution.
The Company is also of the opinion that the upstream gas industry has much expertise to offer the renewable
energy sector. This is particularly relevant in the area of green hydrogen in relation to subsurface storage in
former gas reservoirs; transport using gas infrastructure; potential blending of green hydrogen; and natural
gas for power generation.
The Board believes that the Company’s medium-term future is tied to gas as being the flexible energy source
to replace coal and oil as a fuel for power generation to help de-carbonise the energy sector, thereby reducing
CO2 emissions, as gas by comparison is less CO2 pollutant.
Reducing current high levels of CO2 emissions by replacing carbon-intensive fuels used in the industrial sector
in Morocco is a realistically achievable near-term objective for executing the Company’s business strategy.
The Company has assembled material and influential equity positions in a portfolio of assets combining existing
gas discoveries and new gas prospects adjacent to infrastructure owners seeking new opportunities to utilise
spare capacity and industrial markets heavily reliant on imported fuel oil.
Following the Company’s presentation to the Ministry of Energy and Energy Industries (“MEEI”) Carbon
Capture and Carbon Dioxide (CO2) Enhanced Oil (“CO2 EOR”) Recovery Steering Committee on 17 August 2021,
the Government of Trinidad and Tobago is seeking consultation on its Draft Policy to Create Carbon Capture
Utilisations and Storage Specific Legislation. Trinidad is a high emitter per capita of CO2 gases due to its large
number of ammonia and methanol plants. CO2 sequestration in reservoirs in Trinidad’s mature oil fields is an
area where the Company can seek to apply its business development strategy using its practical expertise
gathered from the successful execution of its Inniss-Trinity pilot CO2 EOR Project. The implementation of CO2
sequestration must be justified both by a credible commercial model and by providing a socially just and
equitable protective umbrella for local communities and economies which are largely dependent on the oil
and gas sector for their immediate livelihoods.
The Company believes that the availability of investment capital for the fossil fuel sector is becoming
increasingly squeezed due to re-alignment of available funds with green energy projects.
Accordingly, the business strategy of the Company is being adapted to reflect these changed circumstances
and to minimise where possible its capital requirements through:
- ensuring that all field operations are carried out in an efficient, safe, environmentally aware and
cost-effective manner to eliminate, where possible, unnecessary waste;
- determining that all contracts with service and equipment providers are robustly negotiated to
obtain the best possible commercial terms for the Company;
- utilising management extensive experience, know-how and industry network to build a low-cost
operating capability;
- focussing capital resources on only projects where near-term monetisation is a realistic goal and
can be achieved within the constraints of a modest capital outlay;
- spending capital only in those geographic jurisdictions where there is a strong internal market
demand for the products that the Company may produce in the near-term;
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
6
- directing capital towards those jurisdictions where the Company’s business development
strategy is aligned with current government and regulatory policies;
- focussing on projects that have robust project economics with considerable headroom and
therefore have high potential to generate positive cash flow in the short-term following
operational success and which are capable of creating assets suitable for alternative monetisation
through near-term trade sales to peer companies and consumers of energy;
- addressing projects that have higher ESG potential;
- ensuring that management is enabled and incentivised to maintain its high profile in the
investment community which has resulted in eight successful over-subscribed Placings for equity
raising GBP17.37 million since 2018 whilst operating and maintaining an undiluted equity interest
in the Company’s portfolio of material projects. This was achieved against the backdrop of
financial markets impacted by BREXIT, COVID, Climate Change Activism and the Ukraine-Russia
war.
Geological risk mitigation has been enacted through screening suitable projects for the Company’s portfolio
using management’s extensive and relevant industry experience. This expertise and know-how is essential to
the Company’s business development strategy as it allows the Company to move to secure assets and
opportunities that have been historically over-looked and under-valued. Management’s creative and
innovative thinking facilitates the development of those assets selected for the Company’s portfolio.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
7
Group Strategic Report
The directors have voluntarily disclosed the Group Strategic Report for the year ended 31 December 2022
although this is not required under Jersey regulations.
Principal activity
Fair review of strategy and business model – (Strategy report on previous pages)
Morocco
The primary focus of activities during 2022 centred on the Company’s Guercif Licence onshore northern
Morocco.
Sedimentological studies were undertaken for MOU-1, drilled in 2021. Integrating the results of these studies
with the conventional wireline logs, which were influenced, in the shallow section by poor borehole conditions
with washouts, and in the higher resolution and reservoir characterisation interpretation of the wireline logs
by NuTech, has provided an enhanced understanding of reservoir distribution within the well and confirmed
the potential for good quality reservoirs within the prospective northwest part of the Guercif Basin.
Biostratigraphic studies validated the pre-drill interpretation for the development of deeper water submarine
fan reservoirs similar to those found in the Rharb Basin and in the offshore Anchois gas discovery to the west
of the Guercif Licence. Age dating of the geological section penetrated by MOU-1 also established a Tertiary
sequence stratigraphy equivalent to that of the Rharb Basin and the basin hosting the Anchois gas discovery.
Geochemical analysis of the MOU-1 well cuttings established the presence of a thermogenic gas source in this
part of the Guercif Basin but also a potential additional biogenic gas source in the shallow section.
The combination of these geological studies supported the pre-drill geological hypothesis that a petroleum
system existed similar to that responsible for the Rharb Basin gas fields and the Anchois gas discovery.
Reprocessing of 278 kilometres of 2D seismic data over the area tested by MOU-1 was completed. Specific
geophysical studies were undertaken to tie the section penetrated by MOU-1 to the existing 2D seismic data.
The pre-drill primary target for MOU-1 was a seismic amplitude anomaly or “bright spot” interpreted as being
generated in response to the presence of gas. Similar seismic anomalies have been successfully drilled in the
Rharb Basin and in the Anchois structure offshore. MOU-1 encountered formation gas in the primary target at
1,236 metres TVD KB, 7 metres deeper than pre-drill prognosis.
The results of the geophysical studies precisely matched the above primary gas target penetrated by the MOU-
1 well to the 2D seismic data at the well. This seismic amplitude response was then character-matched with
that defining the extent of the “Moulouya Fan” over an area of at least 30km².
Based on the results of all these studies several drilling locations on the Moulouya Fan were developed. The
MOU-2 well location was selected to be drilled first in an area where it was anticipated that thick reservoir
sands would potentially be developed along the main axis of the submarine fan system adjacent to an eastern
source of sediments to feed the fan system.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
8
An Environmental Impact Assessment (“EIA”) was completed for three possible new well locations in addition
to two other potential existing well locations on the Moulouya Fan approved under the existing EIA for MOU-
1.
During the year preparations for drilling were progressed. Unlike 2021 and the preparations for drilling MOU-
1 where key well items such as drilling fluids, casing and wellheads were available from surplus well inventory
within Morocco, the pre-planning to drill MOU-2 had to factor in sourcing and importing into Morocco long
lead well inventory items from multiple jurisdictions. Preparations were further hampered by the Ukraine –
Russia war which created supply chain problems and logistical issues for marine transport as cargo space
availability became stretched and highly competitive. This resulted in some well inventory being re-directed
to transport by road.
Similarly, wellsite services and suitably qualified and experienced personnel were more difficult to secure from
overseas as demand rose with the increasing oil and gas sector activity generated by rising commodity prices
as a result of the Energy Crisis.
Despite all these logistical challenges the Company put together its own operating team and secured all the
well inventory and well services required to enable the MOU-2 well site to be constructed and well permitting
to be completed by the end of the year. At this time the Star Valley Rig 101 moved onto the well location and
prepared to commence drilling operations.
During the year the Company has continued to engage with potential end-users in the industrial sector in
Morocco in terms of negotiating a Gas Sales Agreement immediately after a programme of rigless well testing
for MOU-1 and new drilling has been completed. The Company seeks to generate economies of scale by
mobilising testing equipment for a multiple well testing programme, if possible, to reduce mobilising and
demobilising costs on an individual well basis.
The industrial gas market in Morocco is suited to receiving deliveries of compressed natural gas (“CNG”) by
road transport due to there being multiple potential sites not linked by any existing pipeline infrastructure.
Moroccan indigenous gas production, already at very low levels of output, has declined during 2022 due to the
failure to replace depleting gas resources. Gas from Guercif therefore remains an attractive commercial
proposition.
SLR Consulting (Ireland) Ltd. (“SLR”) provided a new Competent Persons Report (“CPR”). The CPR comprises of
an independent re-assessment and valuation of the “Guercif MOU-4 Prospect” which is now designated the
Moulouya Fan.
The gross Best Estimate resources, based on a conservative 66% gas recovery over 13 years, is 393 BCF (295
BCF net attributable to Predator’s 75% interest). SLR indicate a High Estimate of 708 BCF net attributable to
Predator’s 75% interest based on a higher GIIP estimate for potentially thicker reservoirs that may be
encountered at the MOU-2 well location.
The CPR has moved the pre-drill Prospective Resources to Contingent Resources and defines the Best Estimate
of 295 BCF net to the Company’s 75% interest to be “potentially recoverable from a known accumulation by
the application of a development project”.
The definition of Contingent Resources has resulted in an ENPV of US$148 million based on 25% of the 295
BCF (74 BCF) of the net resources attributable to the Company’s 75% interest. The 25% chance of proceeding
to development reflects the remaining production, transport, legal, contractual, and environmental issues
relating to a large-scale gas-to-power development. The unrisked ENPV is US$592 million. The CPR states that
“the chance of commerciality for a pilot Compressed Natural Gas (“CNG”) development supplying lower
volumes of gas to industrial markets is likely to be considerably higher”, based on a higher reported average
gas price to the Moroccan industry of US$11.40/mcf in 2021.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
9
In the latter part of the year the Company was negotiating to extend the Initial Period of the Guercif Petroleum
Agreement to allow for additional drilling to take place and to remove drilling obligations for the First Extension
Period to leave just a 200 km² 3D seismic commitment. This would enable the current Bank Guarantee in favour
of ONHYM to be rolled over without the requirement to be replaced or increased. Negotiations were
successfully concluded at the end of the year.
Trinidad
During the period under review the Company has focussed on collecting and analysing technical data for a
mature onshore producing oil field and an undeveloped oil field with a view to assessing their suitability for
CO2 EOR operations.
Two separate commercial models for CO2 EOR have been considered.
The first is based on supplying the Company’s specific CO2 EOR know-how, operating experience and expertise
as a service provider on a fee-paying basis and with a share of CO2 EOR profits or an investment in the
Company’s CO2 EOR business through its wholly owned subsidiary company Predator Oil & Gas Trinidad Ltd.
(“POGT”).
The second requires POGT taking direct equity interests in existing licence with not only the opportunity to
carry out CO2 EOR but also the ability to add value through further development of discovered hydrocarbon
resources.
A technical and commercial proposal for CO2 EOR services was submitted to Lease Operators, operator of the
PS-1 Block in the Palo Seco PS-1 field. The Company has yet to agree commercial terms with Lease Operators
that satisfies the Company’s minimum requirements for a satisfactory financial return that reflects the
Company’s investment in its CO2 EOR delivery system, exclusivity over the surplus liquid CO2 supply through
its exclusive agreement with Massy Gas Products Trinidad Ltd. (“Massy”) and its extensive CO2 EOR technical
and environmental database gathered through developing and operating the Inniss-Trinity CO2 EOR Pilot
Project.
To address the second commercial model in respect of direct participation in licences, the Company made a
proposal to the Ministry of Energy and Energy Industries (“MEEI”) to develop a miscible CO2 EOR project for
the Cory Moruga Production Licence (“Cory Moruga”). Cory Moruga hosts the undeveloped Snowcap Field and
was the subject of an option to purchase through the Company’s original agreement with FRAM Exploration
Trinidad Ltd. (“FRAM”) in relation to the Inniss-Trinity field and the option to acquire FRAM. Both options to
purchase were later dropped whilst the Company focussed all its resources on CO2 EOR operations at Inniss-
Trinity.
The Snowcap-1, drilled by PAREX, original flow test generated a rate of 1,200 bopd.
The Company’s management had made an unsuccessful bid for Massy’s Moruga West Field in 2017. The
Moruga West Field (originally operated by BP) extends into Cory Moruga. The Company’s management has
extensive subsurface understanding of the area covered by the Moruga West Field and Cory Moruga as the
producing Moruga West reservoirs are represented in the Snowcap Field and in Rochard-1 drilled in the 1950’s
west of the Snow Cap Field but within Cory Moruga.
Rochard-1 flowed 899 bopd on testing.
The Company will be well-placed to negotiate with the MEEI following the Company’s presentation to the
Ministry of Energy and Energy Industries (“MEEI”) Carbon Capture and Carbon Dioxide (CO2) Enhanced Oil
(“CO2 EOR”) Recovery Steering Committee on 17 August 2021 and the fact that the Government of Trinidad
and Tobago is seeking consultation on its Draft Policy to Create Carbon Capture Utilisations and Storage
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
10
Specific Legislation. POGT designed and executed the Inniss-Trinity CO2 EOR Pilot Project and retains
exclusivity over surplus liquid CO2 supply with Massy. Together Massy and POGT are the only group that could
implement CO2 EOR in the short-term to address the MEEI requirement for CO2 EOR to be part of all future
work programmes for oil fields onshore Trinidad.
During the year the Company decided to begin the process of exploring with FRAM a mutually beneficial
resolution of the issues relating to consequential losses potentially suffered by the Company as a result of the
Company’s view that FRAM had breached the terms of the Inniss-Trinity Well Participation Agreement and for
FRAM’s failure to repay the Loan advanced to FRAM repayable out of profits arising from the sale of CO2 EOR
enhanced oil production during 2020 and 2021.
At the end of the year the Company had agreed a legally binding Term Sheet whereby it would acquire (the
“Acquisition”) Challenger Energy Group Plc’s (“CEG”) wholly owned subsidiary TREX Holdings Trinidad Ltd.
(“TRex”). TRex holds an 83.8% interest in Cory Moruga.
The terms of the Acquisition include acquiring 100% of the issued share capital of TRex.
A Condition Precent for Completion of the Transaction is that the 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 Corry
Moruga Production Licence such that TRex is free of all liabilities at Completion.
Under the terms of the Acquisition CEG will retain a 25% back-in right exercisable within 3 years of the
Completion Date for the Acquisition on payment of US$2.25 million in cash and a variable percentage of the
costs incurred by Predator on the Cory Moruga field subsequent to the completion date for the back-in as
follows:
a) 50% of costs incurred if the P50 Resource is less than 5 million barrels of oil (Mbbls);
b) 75% of costs incurred if the P50 Resource is more than 5 Mbbls but less than 10 Mbbls;
and
c) 100% of costs incurred if the P50 resource exceeds 10 Mbbls.
Predator and Challenger Energy have also agreed to establish a collaboration in relation to CO
2
EOR activities
and projects in other areas in Trinidad, including but not limited to potential application of CO
2
EOR techniques
across Challenger Energy’s other fields, leveraging Predator’s expertise in CO
2
EOR techniques and
methodologies.
The Gross Consideration for the Acquisition is US$9 million.
The Cash Consideration is USD3.0 million payable in 3 stages – USD1.0 million on Completion; USD1.0 million
6 months after completion; and USD1.0 million once production from Cory Moruga reaches 100 bopd.
The remaining USD6 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 USD4.6 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 USD360,096advanced as cash and
USD402,120 and GBP26,461advanced as equipment would be written off. The balance of the USD6 million
remaining represents a nominal cost for supplying the CO2 EOR expertise and know-how to facilitate the
planning and execution of the Inniss-Trinity CO2 EOR Project.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
11
The Gross Consideration of USD9 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 oil price of USD65 was demonstrated to
be USD18.3/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.
The Cory Moruga Licence has seen several wells drilled on it in the past by PAREX and then by TRex and is
covered by 3D seismic. Unrelieved tax losses of at least USD45 million within PAREX and their acquirer TRex
are available for offset against future Petroleum Profit Tax applicable to all production from the Cory Moruga.
In summary, for a Gross Consideration of USD9 million and a net Cash Consideration of USD3 million the
Company is acquiring 1,523,449 barrels of P50 oil resources at the equivalent of USD1.969/barrel and a further
15.5 mm barrels of potential P50 oil resources that are subject to appraisal drilling at USD0.19/barrel.
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.
Ireland
During the period under review the Company has mainly focussed on raising the public and Irish Government’s
awareness of its Mag Mell FSRUP LNG gas import option (“Mag Mell”). This was to demonstrate how Mag Mell
could address Ireland’s security of gas supply.
The Company presented its alternative gas import option at the National Energy Summit in Dublin in April
2022. A “White Paper” was issued and circulated to politicians and all significant stakeholders in the energy
sector in Ireland. It demonstrated how gas was needed to seasonally support the national electricity grid when
renewable energy was curtailed by weather conditions. This was followed up by lobbying members of the Irish
Dail in a series of one-to-one meetings.
No further responses have been received from the Department of the Environment, Climate and
Communications (“DECC”) regarding the Company’s applications for successor authorisations for Corrib South
and Ram Head. The Company has satisfied all regulatory requirements for the award of the successor
authorisations.
The Company continued to make submissions to the DECC to delay the decommissioning of the Kinsale gas
pipeline to shore. Currently the Minister for the DECC has not signed off on the decommissioning of this vital
piece of gas infrastructure, which if decommissioned would further weaken Ireland’s security of energy supply.
The Company’s proposed that a potential Ram Head gas storage facility would be dependent upon the Kinsale
gas pipeline to shore remaining in place to advance the date for the commissioning of such a storage facility.
Ireland has no gas storage facility and is clearly not contributing at present to the wider energy security of the
European Union despite having the infrastructure and facilities to help with ameliorating the Energy Crisis.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
12
Towards the end of 2022 the Company received an unsolicited approach from an existing gas producer in
Ireland in respect of its Corrib South successor authorisation. A Confidentiality Agreement was entered into,
and a Data Room was set up The potential introduction of a Windfall Tax in Ireland to address excess profits
made by energy companies during the Energy Crisis may deter companies from investing further in upstream
activities.
The Company is adopting a “wait-and-see” policy towards Ireland until the publication of the analysis of the
options listed for consideration under the Security of Supply Review out-sourced by the DECC in 2022 are
published in 2023. Mag Mell Energy Ireland Ltd. contributed in the Security of Energy Supply consultation
process initiated by the DECC in December 2022 and was one of the first companies to be invited to meet with
the DECC representatives.
Importantly, from the Company’s perspective ongoing constructive engagement with the DECC on its
applications for successor authorisations and in respect of Mag Mell, is important for establishing a precedent
for the potential commercial value of these projects in the event that an impasse is reached with the Minister
for the DECC in respect of not approving the award of the successor authorisations in contravention of the
existing regulatory procedures.
Financial review
The Company reported an operating loss for the period to 31 December 2022 of GBP2,558,844 (GBP1,517,571
for the restated period to 31 December 2021). The increase in operating loss is entirely attributable to share
based payments (the award of options).
Administrative expenses for the period to 31 December 2022 were GBP2,545,789 (GBP1,517,552 for the
restated period to 31 December 2021). Excluding share based payments for options and warrants corporate
administrative expenses were GBP1,310,909 (GBP1,323,268 for the restated period to 31 December 2021).
Corporate administrative expenses have been prudently managed despite inflationary pressures during 2022.
Executive directors’ fees have increased to GBP236,575 (GBP229,165 for the restated period to 31 December
2021) as a result of the significant increase in the Company’s corporate activities in the period to 31 December
2022 to maintain business growth potential. Share options have been awarded to incentivise directors and
management.
The Company is finishing the reporting period with cash reserves of GBP3,323,161 (GBP1,523,035 for the
restated period to 31 December 2021) and restricted cash of USD1,500,000 (USD1,500,000 for the period
ended 31 December 2021) in the form of the security deposit for the Guercif Bank Guarantee in favour of
ONHYM. Cash reserves have increased as a result of disciplined cash management and a series of Placings
during the year in the equities market despite investor uncertainty generated by the Ukraine-Russia war and
the Cost of Living Crisis. The Company’s portfolio of assets and experienced management team continues to
attract the support of the investor community.
The balance outstanding of the loan made by the Company to FRAM Exploration Trinidad Ltd. (“FRAM”) for
the investment in the Pilot CO2 EOR Project was GBP659,504 (GBP591,065 for the restated period to 31
December 2021) at the end of the period. At the end of the year the Company announced that it had entered
into a binding Term Sheet (“the Term Sheet”) for the acquisition (the “Acquisition”) of the entire issued share
capital of TRex Holdings (Trinidad) Ltd. (“TRex”), a wholly owned subsidiary of Challenger Energy Group Plc
(“CEG”). FRAM is also a wholly owned subsidiary of CEG. TRex holds an 83.8% in the Cory Moruga Production
Licence containing the Snowcap-1 oil discovery. The acquisition of TRex is subject to certain Condition
Precedents established by the Company which, if satisfied, will then require the consent of Trinidad’s Ministry
of Energy and Energy Industries to complete the Acquisition. The Term Sheet facilitates the offset of the
outstanding FRAM Loan balance against the agreed Gross Consideration for the Acquisition such that the
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
13
Company, in the event of all regulatory approvals being received, will pay only three phased equal instalments
of US$1 million to acquire the interest in and operatorship of the Cory Moruga Production Licence.
During the period to 31 December 2022, we have completed two Placings to raise GBP4,335,000 (before
expenses). As a result of these transactions 66,500,000 new shares have been issued (“the Placing Shares”).
Also, during the period, the Company received an exercise notice from Novum in respect of warrants whereby
Novum was exercising the warrants issued on 24 May 2018, exercisable at GBP0.028, (which had the expiry
date extended to 24 May 2023) and 17 February 2020, exercisable at GBP0.04. On the 12 July 2022, following
this notice, the Company allotted and issued the total of 4,149,210 New Ordinary Shares upon receipt of the
aggregate GBP143,253 subscription price from Novum.
The Company received a further exercise notice from Novum in respect of warrants whereby Novum was
exercising the warrants issued on 17 August 2022, exercisable at GBP0.055. On the 21 November 2022,
following this notice, the Company allotted and issued the total of 1,800,000 New Ordinary Shares following
receipt of the aggregate GBP99,000 subscription price from Novum.
Following exercise of all of these warrants the Company received an aggregate amount of GBP242,253 and
issued 5,949,210 new shares.
During the period the Company received an exercise notice from Dr. Stephen Staley, a former director of the
Company, in respect of share options whereby Dr. Staley was exercising the share options issued on 18 May
2018, exercisable at GBP0.028. On the 29 September 2022, following this notice, the Company allotted and
issued the total of 1,001,370 New Ordinary Shares following receipt of the aggregate GBP28,038subscription
price from Dr. Staley.
The Company received a further exercise notice from Sarah Cope, a former director of the Company, in respect
of share options whereby Sarah Cope was exercising the share options issued on 18 May 2018, exercisable at
GBP0.028. On the 12 October 2022, following this notice, the Company allotted and issued the total of
1,001,370 New Ordinary Shares following receipt of the aggregate GBP28,038 subscription price from Sarah
Cope
The Company received a further exercise notice from Louis Castro, a former director of the Company, in
respect of share options whereby Louis Castro was exercising 650,000 of the 1,650,000 share options issued
on 27 October 2020, exercisable at GBP0.05. On the 23 November 2022, following this notice, the Company
allotted and issued the total of 650,000 New Ordinary Shares following receipt of the aggregate GBP32,500
subscription price from Louis Castro.
On the 24 November 2022, the executive directors of the Company, Paul Griffiths, in respect of 4,005,486
share options issued on the 18 May 2018, exercisable at GBP0.028, and in respect of 3,850,000 share options
issued on 27 October 2020, exercisable at GBP0.050, and Lonny Baumgardner, in respect of 7,855,486 share
options issued on the 31 January 2022, exercisable at GBP0.0566 exercised share options. On the 28 November
2022, following the exercise of the options, the Company allotted and issued the total of 15,710,972 New
Ordinary Shares following receipt of the aggregate GBP749,276 subscription price. The exercised share options
were sold through Novum Securities at GBP0.080 with the balance of GBP507,604 in excess of the subscription
price being loaned by the executive directors to the Company.
During the year the Company issued 7,855,486 options to Lonny Baumgardner and 1,000,000 share options to
Louis Castro on 31 January 2022 at an exercise price of GBP0.0566; 2,000,000 options to Alistair Jury and
2,000,000 share options to Thomas Evans on 5 July 2022 at an exercise price of GBP0.0812; and 7,500,000
options to Paul Griffiths and 7,500,000 share options to Lonny Baumgardner at an exercise price of GBP0.100
and 2,000,000 options to Carl Kindinger at an exercise price of GBP0.0775 on 9 November 2022; and 7,855,486
options to Paul Griffiths and 7,855,486 options to Lonny Baumgardner at an exercise price of GBP0.080 on 24
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
14
November 2022. Those share options issued to Paul Griffiths and Lonny Baumgardner on 24 November 2022
were in recognition that the executive directors had exercised existing share options on the same day to
provide additional funding for the Company to support the MOU-2 drilling programme in Morocco.
Following the admission of the above exercised share options and warrants and the Placing Shares the issued
share capital increased to 383,759,189 by the end of the period to 31 December 2022 (292,946,267 for the
period ended 31 December 2021).
Prior year adjustment
An error in the 2021 financial statements has been identified and corrected. This has been put through the
financial statement as a prior year adjustment. Please see note 26. The 2021 comparatives have been restated
for the correction of this error, details of which are given below.
The prior year adjustment only impacts the December 2021 figures and therefore no third statement of
financial position is required to be disclosed. The changes have resulted in changes in both the Statement of
Comprehensive Income for 2021 and the Statement of Financial Position. However, the prior year adjustments
have not had any impact on the overall accumulated loss stated for the Group for 2022 or the total net assets
of the Group for 2022.
In 2021, share options previous granted to a previous director were cancelled. In accordance with IFRS 2, the
remaining charge of £118,751 should have been accelerated and expenses to the Statement of Comprehensive
Income as a share-based payment. This resulted in an increased operating loss of £118,751. Subsequently, the
total fair value of the share options of £237,238, as included in the share-based payment reserve should have
been recycled to retained deficit.
COVID pandemic, Energy Crisis and Volatility in the Foreign Exchange Markets
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 oil and gas sector 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.
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 advisable in order to
focus the Company’s resources on delivering this key value proposition in Morocco for shareholders. This does
not reduce the Company’s strategic and competitive advantages in Trinidad for CO2 EOR operations, where
exclusivity of liquid surplus CO2 supply has been maintained, nor in Ireland, where the Company currently
offers a viable gas storage project and a FSRU LNG gas import option. 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.
The Company has successfully navigated its way through the disruption imposed by the Ukraine-Russia conflict
which has impacted supply chain logistics to maintain the ability to execute its drilling programme in Morocco
in a timely manner and to ensure that the Company is well-funded to see out a period of turmoil in the global
financial markets.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
15
Inflationary pressure on well services and equipment is reduced by astute management of operations by an
experienced management team with a network of extensive industry contacts. Rising inflation is balanced by
the rising cost of energy (oil and gas). The Company is focussed on near-term production and cash generation
in Trinidad and Morocco in order to capture the cycle of higher commodity prices during the early stages of
the Energy Transition.
Volatility in the foreign exchange markets is being managed by maintaining cash reserves in a variety of
currencies including United States Dollars, United Kingdom Pounds and Moroccan Dirhams to reflect the
principal currencies in which its costs are incurred. The Company seeks to focus on the potential to generate
revenues in United States Dollars, which has traditionally been a more stable currency for business. Any future
oil production in Trinidad is priced against West Texas Intermediate spot price. Any future gas production in
Morocco is based on the price of gas being tied to the United States Dollar. Payments in local currencies are
therefore protected to some extent and foreign exchange controls allow the conversion to the equivalent
United States Dollars to be made for repatriation of funds to the parent Company’s country of corporate
domicile.
The implementation of windfall taxes in Trinidad and Morocco in the oil and gas sector is considered to be very
unlikely. Trinidad already has a Supplementary Petroleum Profit Tax and further taxation would greatly reduce
levels of investment required to bolster oil production in Trinidad’s depleting onshore oil fields and would also
deter the roll out of CO2 sequestration linked to CO2 EOR activities. Morocco’s seeks to develop gas to replace
carbon-intensive coal-fired power generation. Investment would be compromised if windfall taxes were
introduced and would be contrary to Morocco’s low taxation policy for the oil and gas sector.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
16
Board changes
During the year the Board was refreshed with the appointment of two Non-executive Directors Alistair Jury on
12 May 2022 and Carl Kindinger, a former Non-executive Chairman of the Company, on 24 October 2022.
These appointments significantly strengthened the Board’s ability to provide independent oversight of
financial decisions to address the unsettled outlook for the prospect of funding oil and gas projects.
Alistair Jury has over 25 years’ experience in the energy industry in a variety of finance and commercial
experience in a variety of roles with ExxonMobil, Unocal, Murphy, Svenska Petroleum. He is an associate of
Columbus Energy Partners involved in evaluating renewable and sustainable energy projects worldwide. He
has a degree in Geology from University of London, is a Fellow of the Geological Society and is a Fellow member
of the Association of Chartered Certified Accountants.
Carl Kindinger has held senior corporate finance roles for 30 years including board level appointments in many
different industries in several different countries in Africa, including Morocco, the Middle East, principally
Saudi Arabia and Europe, including Romania and Ireland. He joined the Board of AIM-listed Island Oil & Gas Plc
as Chief Finance Officer in 2006 and assisted with developing Island’s position in Morocco. Later he joined
Fastnet Oil & Gas Plc consulting on finance matters relating to Morocco.
Carl is an associate member of the Institute of Chartered Management Accountants and also holds a degree
in economics and an MBA.
His major achievements include identifying, evaluating and promoting major investment projects, raising
finance in difficult circumstances, a tax saving-led equity and debt re-structuring, and merger and acquisitions.
He has considerable experience in Stock Exchange and IFRS reporting, IPO requirements, business plans and
performance evaluation.
The Audit and Remuneration Committees comprise both of the two new Non-executive directors.
Thomas Evans was appointed to the Board as a Non-executive on 12 May 2022 but subsequently stepped
down on 24 October 2022 to focus on his role as Chief Executive Officer of Pennpetro Energy Plc.
Dr. Stephen Staley stepped down from the Board on 8 March 2022. Louis Castro stepped down from the Board
on 31 May 2022. Both Non-executive Directors stepped down to focus on their other commitments.
ESG metrics
ESG is an important consideration in the growth of our business and is based on both expanding the pragmatic
role of gas as a “sustainable” source of energy for reducing CO2 emissions, future collaboration with renewable
energy project developers if and where appropriate, and the utilisation of existing infrastructure and
subsurface reservoirs for cost-effective CO2 sequestration. Through this strategy we can determine a common
route to achieve a timely and socially just, fair and equitable energy transition.
Currently 100% of our assets are focussed on either gas, which has a much lower carbon intensity compared
to oil, or “greener” oil, where sequestration of anthropogenic CO2 can be shown to be safe and effective for
reducing CO2 emissions from industrial plants currently venting CO2 into the atmosphere.
Morocco and Trinidad
A material proportion of current CO2 emissions generated by that part of the Moroccan industry that uses
imported fuel oil could be saved by switching to cleaner natural gas.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
17
From 2017 to 2020 cumulative tonnes of carbon saved by the current end users of gas versus imported fuel
oil, representing less than 20% of the easily accessible imported fuel oil industrial market suitable for
conversion to natural gas, was approximately 200,000 metric tonnes. During the period under review this
percentage has potentially declined as indigenous gas production in Morocco has also declined. This has
resulted in a greater risk of end-users of gas potentially switching back to imported fuel oil to maintain security
of energy supply and manufacturing production capabilities which in turn protects jobs and the indigenous
local economy. There is significant scope to increase the carbon saved by expansion of the gas market in
Morocco.
Current efforts to grow the gas market in Morocco have been hampered by lack of sufficient indigenous gas
resources. The Company’s drilling programme in Morocco is targeting material gas resources that could
potentially transform the Moroccan gas market in a success case. The conservative option being progressed
initially by the Company is to develop compressed natural gas for the industrial market. The anticipated dry
gas from the Moroccan reservoirs targeted for drilling will require minimal processing creating the potential
for a low carbon intensity operation forecast to be in the order of 2.2 kg CO2e /boe.
The Company demonstrated “Proof of Concept” in 2021 when it successfully injected anthropogenic CO2 in
Trinidad in reservoirs in a mature producing oil field and that no leakage of sequestrated CO2 was subsequently
measured at surface.
The opportunity to expand CO2 sequestration capacity would be enhanced on completion of the acquisition
of TRex should MEEI consent be forthcoming. The Trinidad Government’s Draft Policy to Create Carbon
Capture Utilisations and Storage Specific Legislation is potentially relevant to the Company’s future plans for
CO2 sequestration on a commercial basis.
On the ground at Guercif in Morocco site preparation included significantly improving minor roads and tracks
for the benefit of local communities and preparing the well site to very high standards.
Liaison and consultations with local olive tree growers ensured local communities were not adversely
impacted by the Company’s operations.
In Guercif city itself maximum use was made of local hotel accommodation, warehousing and catering and
logistical support services thereby providing additional income for what is one of the less affluent areas of
northern Morocco.
Local people have been employed to provide well site security and warehouse personnel.
Transport and freight companies have benefited from the use of their transport to move around well site
personnel and equipment.
Without the Company’s drilling operations these additional sources of income, that have directly benefited
the local community, would never have been possible.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
18
Ireland
The Company’s ESG strategy for Ireland is focussed on developing an offshore LNG import facility with reduced
ecological impact compared to onshore LNG terminals and wind farms. The ESG rationale is that such a facility,
which is not unique to most of the countries in the EU, would result in security and diversity of energy supply,
which is in the public interest as defined by current regulatory definitions and in the context of the energy
transition.
Through the optionality of replacing 250 to 275mm cfgpd of imported gas throughput via Ireland’s gas
interconnector with the UK, ESG transparency would be enhanced and CO2 emissions potentially reduced. The
Floating Storage and Regasification Unit (“FSRU”) proposed for Ireland by the Company will operate with the
minimum possible ecological and environmental footprint, reducing and potentially eliminating CO2 emissions
from its operation. The FSRUs will be supplied with LNG feedstock only from transparent sources not linked to
shale gas or fracking operations. The origin of gas currently transported through the UK interconnector to
Ireland cannot be established as clearly from an ESG perspective.
ESG performance criteria
Whilst investing in projects that contribute to reducing CO2 emissions in the countries identified by the
Company as having maximum impact per capita, there are other performance metrics that need to be adhered
to as follows:
Where practical and pragmatic use renewable energy (particularly solar) to power development
projects
- Reduce carbon-intensive air travel by substituting virtual meetings aided by real-time Vsat
transmission of data and drone and camera technology for site inspections and directing
operations
- Promote remote access working from home to minimise carbon footprint with the virtual office
concept
Where operating in onshore areas, including agricultural lands
- Ecological impact must be low – all produced water is evaporated and/or treated before disposal
offsite
- No water discharges or oil spills from operations
- Community liaison enacted to maintain local support and understanding for those impacted by
the Company’s operations
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
19
- Utilise local services wherever practical and pragmatic to support local economies
An ESG Board committee will oversee the proposed CNG development in Morocco to ensure ESG
policy is being adhered to with
- Increased focus on social elements
Sustainability Accounting Standards Board disclosure to be included in FY reporting
Post period events
25 January 2023
The Company announced an update on the drilling of the MOU-2 well in the Guercif Petroleum Agreement
onshore Morocco.
The MOU-2 well had been suspended with an option to re-enter after reaching a depth of 1,260 metres
Measured Depth.
Below the logged interval down to 1,010 metres Measured Depth a gross interval of 165 metres was
penetrated with up to 100 metres of variable quality sand.
The Moulouya Fan target had not been reached yet in MOU-2 as a consequence of the requirement to re-
evaluate the drilling programme through the unexpected geological formation encountered in the well.
The mud programme and its compatibility with the previously not seen sand-rich geological formation
represented by the debris-flow will require re-evaluation to achieve a more cost effective rate of penetration.
6 March 2023
The Company announced that it had received an exercise notice from Optiva Securities Limited (“Optiva”) in
respect of 2,035,714 warrants issued to it pursuant to warrant agreements with the Company:
1,875,000 of the warrants were exercisable at 4 pence per share whilst the balance of 160,714 warrants were
exercisable at GBP0.028 per share.
The Company therefore allotted and issued to Optiva the total of 2,035,714 new ordinary shares (the “New
Shares”) following receipt of the aggregate GBP79,500.
7 March 2023
The Company announced an update on the proposed testing of the MOU-1 well drilled and completed in
2021 in the area of the Guercif Petroleum Agreement onshore Morocco.
In conformance with the current Moroccan regulatory procedures for rigless well testing, the Company had
expressed in writing to the Office National des Hydrocarbures et des Mines (“ONHYM”) the intention to test
MOU-1.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
20
8 March 2023
The Company announced an update that, further to entry into a binding term sheet with Challenger Energy
Group PLC and relevant subsidiary entities (“CEG”) as announced on 19 December 2022 (“the Transaction”),
the Company had now completed all confirmatory due diligence and the Company and CEG have subsequently
entered into fully termed long-form legal documentation.
17 March 2023
The Company announced that it had conditionally placed 14,174,056 new ordinary shares of no par value in
the Company and 20,863,636 existing ordinary shares of no par value in the Company transferred by a director
of the Company, Paul Griffiths, (the "Placing Shares") at a placing price of GBP0.055 each (the “Placing Price”)
to raise GBP2,000,000 (before expenses) (the “Placing”).
The Company will not have sufficient headroom to enable issue and admission of all of the 36,363,636 Placing
Shares which are required to be issued pursuant to the Placing without producing of an FCA approved
prospectus.
The Company is therefore proposing to issue and admit 14,174,056 new ordinary shares (up to its existing
headroom limit existing at 31 March 2023) on 3 April 2023.
On the same date, it is also intended for a director of the Company, Paul Griffiths, to make up the shortfall by
way of a loan of 22,189,580existing ordinary shares (the “Loan Shares”) held by him in order to settle the
Placing in a timely manner. For the avoidance of doubt, the transfer of the shares subject to the loan from Paul
Griffiths involves no consideration being paid. The transfer of these shares is expected to be made on 3 April
2023.
The Loan Shares were valued at £1,147,500 and accrue interest at a rate of 4% (four percent) above SONIA,
with the default rate being 12%.
28 March 2023
The Company released an update to the fund raising announced on 17 March 2023, whereby on that date the
Company announced that it had conditionally placed 15,500,000 new ordinary shares of no par value in the
Company (“New Shares”) and 20,863,636 existing ordinary shares of no par value in the Company (“Loan
Shares”) transferred by a director of the Company, Paul Griffiths, at a placing price of 5.5 pence each (the
“Placing Price”) to raise £2,000,000 (before expenses) (the “Placing”) for completion on 3 April 2023.
The Company now confirms that the number of New Shares issued will be 14,174,056 whilst the number of
Loan Shares to be transferred by Paul Griffiths will be 22,189,580.
The Loan Shares were valued at £1,220,427 and accrue interest at a rate of 4% (four percent) above SONIA,
with the default rate being 12%.
The total funds raised by the Placing remains at £2,000,000, which is conditional on the New Shares being
admitted to listing on the Official List (standard listing segment) and to trading on the London Stock Exchange's
main market for listed securities ("Admission") on or around 3 April 2023 (or such later date as may be agreed
by the Company and Novum).
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
21
29 March 2023
The Company announced the issue of share options to Moyra Scott a Drilling Manager in Morocco as well as
her appointment as a director of the Group's subsidiary company Predator Gas Ventures Ltd.
The total share options granted to Moyra were 3,000,000 options exercisable at 10.0 pence per share and will
vest after 6 months or upon the release of a Company RNS with the MOU-3 wireline log results - whichever
occurs first.
3 April 2023
The Company announced admission of 14,174,056 new ordinary shares of no par value in the Company (“New
Shares”).
The Company raised a total of £2,000,000 (before expenses).
4 April 2023
The Company announced that Predator Gas Ventures Morocco Branch ("PGVMB") has awarded the contract
for the construction of the MOU-3 well pad platform and the improvement of access roads to Moroccan
company Skayavers Sarl.
Completion of permitting and survey requirements are expected to be finalised shortly. Civil works are due to
start on or before 10 April 2023 to facilitate the commencement of drilling activities prior to the end of May.
PGVMB confirmed that it has managed to source and order for delivery the most critical outstanding long lead
items in what is a very competitive and challenging international market at present due to supply chain
deficiencies.
An update on the MOU-1 testing programme will be provided in due course and it is expected to be executed
in April. It will be scheduled around the MOU-3 pre-drill planning, which is the current priority in order to
enable MOU-3 to commence drilling at the earliest opportunity.
The materials and logistical requirements for a potential re-entry of the suspended well MOU-2 are being
evaluated, but it is not expected that any such operation would be executed before the completion of drilling
at the MOU-3 location.
Summary
During the period under review, the Company has successfully achieved key well planning progress in Morocco
within our strict budget guidelines to maintain the ability to drill a high value drilling target for gas.
De-risking the gas potential of the Guercif Basin in 2021 after 35 years without drilling activity, has set up a
timely opportunity in the context of the Energy Crisis to appraise, develop and deliver gas to the Moroccan
industrial gas market on favourable commercial terms and with manageable capital requirements for a
Company with our current market capitalisation. Partnering with downstream off-takers of gas is a sensible
short-term solution to reducing our financial requirements for developing and scaling up our proposed CNG
business model. The overriding objective of the Company is to deliver the MOU-2 drilling programme and to
prepare for follow-up drilling to monetise gas at the earliest opportunity. Successful gas flow rates at even a
modest level from drilling would be sufficient to initiate a pilot CNG project with the potential to deliver
operating revenues within a reasonable timescale thereafter.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
22
In Trinidad we are firmly established as the country’s only CO2 EOR services provider following the technical
and operational success of the Inniss-Trinity pilot CO2 EOR project and the important lessons that have been
learnt. The establishment by the Government of Trinidad and Tobago of the Steering Committee for Carbon
Capture and CO2 EOR supports our efforts to develop a new CO2 EOR opportunity in Trinidad. The conditional
acquisition of TRex, who are operator of the Cory Moruga Production Licence, creates an exciting opportunity
for the Company to develop a miscible CO2 EOR project with enhanced potential for CO2 sequestration whilst
also creating an ability to generate near-term cash flow from conventional production from the undeveloped
oil-bearing reservoirs already penetrated within the licence area.
In Ireland we have an environmentally aware technical and commercial solution to Ireland’s lack of security
and diversity of gas supply. Regulators are now familiar with what the Mag Mell FSRU project has to offer
Ireland. Sentiment is being forced to adapt to the realities of the Energy Crisis, spiralling energy costs and the
seasonal volatility in energy markets. The requirement for gas in Ireland is a necessity for years to come and
the Company is well-positioned to seek partnerships with indigenous companies in the Irish energy sector
where our assets, expertise and specific Irish offshore experience can be traded for a strong balance sheet that
allows us to close out opportunities with multi-nationals to develop our niche strategic position in Ireland. This
position has been nurtured through unfashionable times to a point where the “Energy Crisis” makes gas
fashionable again. There is however no guarantee that the current Minister for the DECC in Ireland will address
the current Energy Crisis in a pragmatic way and in the public interest, preferring to make the case for greener
renewable energy that currently and in the near-term cannot resolve the Energy Crisis.
During the period under review we have taken the opportunity, when possible and advisable to do so, 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 and well inventory suppliers and with potential end
users of gas in Morocco. We have three strategically important projects on three continents, managed by a
small team of experienced professionals. Despite COVID, Brexit, the Energy Crisis and financial market volatility
the Company has invested prudently in value-creating projects and operations.
On behalf of the Board, I would like to thank our shareholders for their patience and continued support of the
Company through what has been a turbulent period dominated by the emerging “Energy Crisis”. We look
forward over the next 12 months to continue to make positive progress in Morocco, towards realising our
objective of executing high impact/high value drilling for gas and early monetisation through an innovative
pilot CNG development to supply gas to Morocco’s industrial users, and in Trinidad through consummating the
acquisition of TRex.
Given the currently unsettled outlook for the global economy and the financial markets for 2023 the Company
must remain vigilante and also retain the opportunity at the right time for a trade sale of any asset or part
thereof where a material uplift on the investment made may potentially result. Shareholders in the current
climate are quite rightly looking for early returns on their investments. Management is aligned with
shareholders in this respect in their capacity of cornerstone backers of the Company’s strategic objectives.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
23
Key Performance Indicators
At this stage in the Group’s development, the Directors do not consider that standard industry key performance
indicators are relevant. During 2022 accumulated cumulative enhanced oil production and profits deriving
therefrom arising out of its initial pilot CO2 EOR activities in the Inniss-Trinity field onshore Trinidad could not
be realised due to the premature unilateral termination of the project by the operator of the Inniss-Trinity
Incremental Productions Services Contract FRAM Exploration Trinidad Ltd. (“FRAM”) in 2021. 2,928 barrels of
enhanced oil production was reported by the Group in 2020. The Group, through Predator Oil & Gas Trinidad
Ltd. (“POGT”) does not expect to report any further profits from the project. The realization of potential 2020
profits is being offset as a result of a mutually agreed settlement between the Company, POGT and FRAM and
Challenger Energy Group Plc (“CEG”) in accordance with the terms of the Inniss-Trinity Well Participation
Agreement and its subsequent amendments and the Company’s binding Term Sheet (“the Term Sheet”) for
the acquisition (the “Acquisition”) of the entire issued share capital of TRex Holdings (Trinidad) Ltd. (“TRex”),
a wholly owned subsidiary of CEG. The Acquisition, if approved by the MEEI, will give POGT an 83.8% interest
in the Cory Moruga Production Licence and the ability to develop the undeveloped Snowcap-1 oil discovery
for both primary production and potential revenues and for miscible CO2 EOR incorporating CO2
sequestration. The main KPI is therefore considered to be the conservation and prudent deployment of cash
and the contribution to reducing CO2 emissions whilst the Group continues to undertake appropriate
exploration activity as described as follows:
Improving ESG and Sustainability in relation to the Group’s operations
The Group has developed a new opportunity for CO2 sequestration for CO2 that would otherwise be
vented into the atmosphere from one of Trinidad’s several ammonia plants.
Expand total prospective, probable and proven resources and reserves.
These measure our ability to increase pre-drill prospective resources, discover and develop reserves,
including through the acquisition of new licences or assets.
During the year under review the Group has completed preparations to drill a step-out well MOU-2
to the 2021 MOU-1 exploration well, which was completed for rigless well testing.
SLR Consulting (Ireland) Ltd. (“SLR”) provided a new Competent Persons Report (“CPR”). The CPR
comprises of an independent re-assessment and valuation of the “Guercif MOU-4 Prospect” which is
now designated the Moulouya Fan.
The CPR has moved the pre-drill Prospective Resources to Contingent Resources and defines the Best
Estimate of 295 BCF net to the Company’s 75% interest to be “potentially recoverable from a known
accumulation by the application of a development project”.
Develop oil and gas projects which will result in positive cash flow within a short time horizon.
This measures our ability to assist the internal funding of projects with medium term time horizons,
as demonstrated by our proposed Compressed Natural Gas development option for future discovered
gas in Guercif to support early monetisation of gas and to significantly reduce the quantum of
development capital required.
Enter into value adding joint venture and farm-out transactions.
This measures our ability to mitigate risk, share capital expenditure with partners and assist in
meeting licence commitments.
This objective is as yet only partially realised with the entering into of a confidentiality agreement
with an indigenous gas producer in Ireland for a potential acquisition of the Group’s Corrib South
asset, 18 kilometres from the Corrib gas field. This asset is subject to an application for a successor
authorisation being approved by the Irish regulatory authorities.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
24
In Trinidad the Company has announced a binding Term Sheet with CEG to acquire potential
hydrocarbon resources and to implement miscible CO2 EOR and CO2 sequestration.
Secure funding that minimises, as far as market conditions allow, shareholder dilution, cognisant of
the potential for a judicious level of debt funding. This measures our ability to enhance shareholder
value whilst securing the means to grow the business without unduly increasing risk.
No third party debt has been incurred during the reporting year and an adequate quantum of equity
funding has been secured to maintain sufficient working capital as we seek to transition to a revenue-
generating Group through a period of rising commodity prices.
Shareholders’ interests are best protected by establishing sufficient liquidity to support going concern
criteria during periods of volatile global market conditions.
The rate of utilisation of the Group’s cash resources. This measures our ability to plan expenditure
and conserve cash to ensure a going concern and is addressed by reducing corporate costs and
operating costs whenever and wherever prudent to do so, without impacting the timely execution of
the Group’s business development strategy, and by not entering into any discretionary new
commitments and liabilities.
The Group has successfully achieved its performance indicator during the reporting year by increasing
liquidity, generating a potential new CO2 EOR project in Trinidad, and successfully preparing to drill the
MOU-2 well in Morocco without project dilution and without incurring any new financial liabilities and
within budget forecasts.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
25
Group structure and list of assets
Licence/Agreement Issued Asset Operator Partners PRD% Status
ONSHORE
MOROCCO
Guercif Petroleum
Agreement
2019¹ Moulouya
Fan
PREDATOR
Gas
Ventures
Ltd
ONHYM 75%
Gas
exploration
& appraisal
ONSHORE TRINIDAD
Inniss-Trinity 2017² Pilot CO2
EOR
FRAM
Exploration
(Trinidad)
Ltd
PREDATOR
Oil & Gas
Trinidad Ltd
(Technical
Operator)
FRAM
Exploration
(Trinidad) Ltd
50%³
Producing
oil field
Cory Moruga Conditional⁴ Snowcap PREDATOR
Oil & Gas
Trinidad Ltd
TOUCHSTONE
Exploration
Ltd.⁴
83.8%⁴
Producing
oil field
OFFSHORE IRELAND
Atlantic Margin
LO 16/26
2016
⁵
Corrib
South
PREDATOR
Oil and Gas
Ventures
Ltd
Theseus Ltd.
50%
Gas
exploration
North Celtic Sea
LO 16/30
2016
⁵
Ram Head
PREDATOR
Oil and Gas
Ventures
Ltd
Theseus Ltd.
50%
Gas
exploration
& appraisal
¹ Negotiating to further extend the Initial Period of the Guercif Petroleum Agreement to 18 June 2023 by
accelerating drilling activity currently scheduled or the First Extension Period
² Inniss-Trinity Well Participation Agreement will be wound up with the conditional acquisition of TRex
³ POGT receives 50% of CO2 EOR profits under the Inniss-Trinity Well Participation Agreement
⁴ Conditional on MEEI approval of the Acquisition of TRex
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
26
⁵ A Frontier Exploration Licence for Corrib South and a Standard Exploration Licence for Ram Head is conditional
On the award of successor authorisations that have been applied for and remain under consideration by the
Department of the Environment, Climate and Communications
Description of assets
Onshore Morocco – Guercif Petroleum Agreement (“Guercif PA”)
Background to the Guercif Project
The Guercif Petroleum Agreement (“Guercif PA”), comprising the Guercif Permits I, II, III and IV located in the
Guercif Basin in northern Morocco, covers an area of 7,269 km². It lies approximately 250 km due east of and
on trend with the geologically coeval Rharb Basin, where shallow commercial gas production has been
established by SDX Energy Plc and its predecessor Circle Oil for several years. Guercif also lies approximately
180 km due north-west of Tendrara, where deep gas is being appraised and potentially developed by Sound
Energy Plc.
Through its wholly owned subsidiary Predator Gas Ventures Ltd. (“PGVL”), the Company holds a 75% working
interest in and is the operator of the Guercif PA. ONHYM, the State oil company, holds 25% and is carried
through exploration, but funds its pro-rata share of all costs upon a Declaration of Commerciality. ONHYM is
owned by the Moroccan government and is involved in oil and gas exploration, appraisal, development and
production within Morocco. The Directors confirm that the Group is yet to receive any funding as a Declaration
of Commerciality is yet to be released.
The Guercif PA is for 8 years and is split into an Initial Period of 30 months, commencing on 19
th
March 2019;
a First Extension Period of 36 months duration; and a Second Extension Period also of 30 months. After each
Licence Period there is an opportunity to withdraw from the Licence, without entering the next Licence Period.
During the year a one year extension to the Initial Period of the Guercif Petroleum Agreement was granted as
a consequence of the restrictions that resulted from the COVID pandemic. As a result, the Guercif Petroleum
Agreement was extended for 9 instead of 8 years. The Initial Period was extended to 42 months.
In the Initial Period the work programme comprises 250 kilometres of 2D seismic reprocessing and AVO
analysis and the drilling of one exploration well to a minimum depth of 2,000 metres or to the top of the
Jurassic, whichever occurs first. Desk-top geological and gas marketing studies will also be carried out. The
Minimum Exploration Commitment is USD3,458,000.
At the end of the period under review the Company was completing negotiations to extend the Initial Period
a further 9 months to 51 months to allow acceleration of the one well commitment planned for the First
Extension Period to facilitate it being drilled in the Initial Period whilst a drilling rig was available on site. This
would remove the drilling commitment from the First Extension Period and eliminate the requirement to put
up a new bank guarantee in favour of ONHYM prior to entering the First Extension Period. The Company was
also negotiating to reduce its drilling depth commitment from 2,000 metres Measured Depth to 1,500 metres
Measured Depth or top Middle Jurassic, whichever occurred first. The First Extension Period would be reduced
from 36 to 27 months. Successful conclusions of these negotiations would allow the Company to cost-
effectively rationalise drilling expenditures and to reduce potential wastage in resources and finances.
By the end of the year under review the Company had completed its 2D seismic reprocessing commitment and
was preparing to commence the drilling of the MOU-2 well, with a planned pre-drill total depth of 1,500 metres
Measured Depth.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
27
Fiscal terms and commercial opportunity
The fiscal terms in Morocco, which are some of the best in the World, are restricted to a 5% State royalty for
gas, applicable after the first 10.6 BCF of net production to the operator, and corporation tax charged at 31%.
However, there is a 10-year “holiday” before corporation tax will be charged and any unused tax losses can be
offset against the tax due. There are no signature bonuses but production bonuses in the form of cash
payments exist with a maximum one-off payment of USD5,000,000 on production greater than 30,000
BOE/day. A commercial discovery bonus of USD1,000,000 is also payable. Significantly each individual gas field
can be fiscally ring-fenced under the terms of an application for an Exploitation Concession. Award of an
Exploitation Concession is not dependent upon fulfilling the work programme for the exploration phases of
the Guercif PA.
The highest gas prices in Morocco are paid by industrial users, substituting for expensive carbon intensive fuel
oil imports, and ranged from USD 10 – 12/mcf during 2022. It is this market that the Company will initially
target with trucked Compressed Natural Gas (“CNG”), which by substitution of more carbon intensive imported
fuel oil can potentially reduce CO2 emissions by up to 33%.
The Guercif licence area straddles the Maghreb gas pipeline to Europe, which also serves Morocco’s current
inventory of gas-fired power plants. A major highway, suitable for the transport of Compressed Natural Gas
(“CNG”) also links Guercif to Morocco’s major industrial centres, many of which use carbon-intensive,
imported fuel oil in the absence of an alternative natural gas resource. Guercif is therefore well-positioned
relative to infrastructure for the potential early monetisation of yet to be discovered gas.
Gas infrastructure map Northern Morocco
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
28
MOU-2 pre-drill location in foreground of highway to industrial centres
History of exploration in Guercif
Guercif has been very lightly explored with only 4 deep exploration wells drilled by Elf in 1972 (GRF-1), Phillips
in 1979 (TAF-1X), ONAREP (the forerunner of ONHYM) in 1985 and 1986 (MSD-1 and KDH-1) and 2 shallow
stratigraphic wells drilled by BRPM for coal exploration in the 1950s.
TransAtlantic re-entered, logged and tested the MSD-1 well, originally drilled in 1985, in 2008 but the logging
and testing failed to establish the presence of hydrocarbons in the Jurassic.
The seismic inventory includes 3,291 kilometres of 2D seismic data acquired between 1968 and 2003, including
a new 300-kilometre ONAREP 2D seismic survey acquired in 2003, which were reprocessed in 2006 by
TransAtlantic when Pre-Stack Time Migration was applied for the first time to the seismic inventory.
TransAtlantic also acquired an aeromagnetic and aerogravity survey in 2006, comprising 10,000 line
kilometres.
Historical exploration focus was entirely on the Jurassic and was completed before the shift in emphasis took
place that resulted in shallow (Tertiary) gas production in the Rharb Basin and successful deep (Triassic) gas
appraisal drilling at Tendrara.
In this context therefore Guercif has never attracted new exploration to evaluate the Tertiary targets
encountered in the gas producing Rharb Basin and the offshore gas discovery well Anchois-1. New academic
research (Capella et. al. 2017) confirmed for the first time the geological continuity of the section containing
the producing Miocene (equivalent to the Tortonian Hoot and Guebbas formations) gas reservoirs in Rharb
Basin with geological outcrops in the Guercif Basin.
The Company’s MOU-1 exploration well, was successfully drilled and completed for rigless testing during 2021
and evaluated the north-western part of the Guercif Basin in a sub-basin that had never been previously drilled.
The well confirmed the pre-drill geological prognosis and the correlation of the primary reservoir target with
a seismic amplitude anomaly.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
29
Post-well seismic analysis confirmed that the seismic amplitude anomaly intersected in the well is interpreted
as correlating with a seismic amplitude-supported submarine fan complex covering an area in excess of 30
km²., defined as the “Moulouya Fan”.
Desktop Studies completed by the Company in 2022
Geophysical studies completed during 2022 further defined the gas signature of the Moulouya Fan in MOU-1
at the depth of a corresponding formation gas show in the well.
278 kilometres of 2D seismic reprocessing was completed during 2022. A significant improvement in the
seismic imaging of the Moulouya Fan was achieved with improved definition of faulting. The scale of the
feature was also confirmed, making it one of the largest drilled Tertiary gas targets to date in northern
Morocco.
Predator 2022 true amplitude reprocessed 2D seismic line across Moulouya Fan
Reprocessing also assisted with the definition of small-scale faulting at the level of shallow sands encountered
in MOU-1 that recorded good formation gas shows. This reinforced the high resolution NuTech petrophysical
wireline log interpretation in 2021 indicating the presence of good porosity with several thin separately sealed
gas pays.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
30
Predator 2022 scaled amplitude reprocessed 2D seismic line across MOU-1 shallow trap
Biostratigraphic analysis and age dating of the MOU-1 well cuttings supported the pre-drill hypothesis for the
development of deeper water submarine fans of an analogous age to those producing gas reservoirs in the
Rharb Basin and in the Anchois offshore gas discovery.
Sedimentological analysis of the well cuttings from MOU-1 in the Moulouya Fan interval also supported the
potential for excellent reservoir quality in thin zones at the limit of conventional wireline log resolution. In turn
this helped to validate the NuTech high resolution petrophysical analysis carried out in 2021.
MOU-1 well cuttings for washed out sands in thin reservoirs - unconsolidated sub-angular
to sub-rounded, moderately well sorted, very fine grained quartz and lesser feldspathic grains
that have undergone very little compaction
Mineralogical analysis identified key geochemical markers that were consistent with the environments of
deposition of the submarine reservoirs and also with key stratigraphic markers indicative of different phases
of faulting, uplift and erosion, the timing and expression of which were correlatable with similar regional
events in the Rharb Basin and at Anchois in the offshore.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
31
Geochemical analysis of the MOU-1 well cuttings indicated levels of organic matter in the claystones suitable
for the production of biogenic gas in the deeper parts of the basin to the northwest of the MOU-1 well location
as well as the potential for migrated thermogenic gas.
A scoping comparison of MOU-1 reservoir and potential production characteristics was undertaken by
geological comparison with an analogous reference well in the Rharb Basin drilled in 2015. The well test data
for the offset reference well confirmed that thinly bedded reservoir sands with poor conventional wireline log
resolution and very low apparent gas saturations (35%) based only on conventional log analysis could flow gas
at commercial rates for a CNG development. High resolution NuTech log analysis for MOU-1 gives a much truer
representation of reservoir properties in the sands encountered in MOU-1 consistent with the gas
deliverability achieved in the offset reference well.
Taken together all these desktop studies fully validated the early decision made in 2021 to complete the MOU-
1 well for rigless well testing.
Together the studies completed during 2022 provided the basis for selecting two new drilling locations to test
the Moulouya Fan in an area where the MOU-1 post-drill geological model suggested thick reservoir sands
might be present and where two seismically defined gas signatures, based on the MOU-1 results, could be
stacked one on top of each other in a single well penetration.
MOU-2 well planning
Well planning and procurement of long lead well equipment and contracting of well services was carried out
during the year. This was against a background of logistical difficulties generated by a supply chain crisis caused
by the Ukraine-Russia conflict.
Despite these significant challenges the MOU-2 well was prepared to commence drilling by the end of 2022.
The MOU-2 well pad was constructed and a drilling base camp established.
MOU-2 well pad construction
The Star Valley Rig 101, which the Company used to drill MOU-1 in 2021, was moved onto location. With a
tightening rig market caused by increased drilling activity fuelled by rising commodity prices, the Company had
been proactive in securing the Star Valley 101 rig early for its proposed drilling programme in Guercif.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
32
Star Valley Rig 101 on MOU-2 location and base camp
Despite the rising cost of equipment and personnel caused by inflationary pressures the budget forecast for
drilling MOU-2 remained in line with the total expenditure for drilling MOU-1 in 2021. The Company applied
its management experience and negotiating skills to achieve acceptable costs for drilling in line with the
Company’s stated policy to apply financial discipline to all aspects of its corporate overheads and operating
budget.
Contingent gas resources
The Company’s current independent Competent Persons Report (“CPR”) by SLR Consulting (Ireland) Ltd., gives
Best Estimate and High Estimate recoverable gross Contingent Gas Resources net to the Company’s 75% equity
interest for the Moulouya Fan (formerly defined as the “MOU-4 Prospect”) in the range 295 to 708 BCF.
MOU-2 will target these Contingent Gas Resources. The difference between Best and High Estimates is
attributable mainly to different thicknesses of reservoir used in each case. The drilling programme will also
potentially de-risk the Chance of Success which SLR evaluated as 25% for a commercial case for gas-to-power.
The Company is focussed on a Compressed Natural Gas development option with a very much higher Chance
of Success based on a much lower threshold for commercial gas resources.
Additional prospectivity
During the year under review the Company continued to develop a prospective Jurassic trap as a potential
additional drilling target for 2023 (“MOU-NE”).
A potential Jurassic carbonate reservoir target was penetrated in an offset well TAF-1X drilled off-structure in
1979.
Revised seismic mapping has identified a structure covering 126 km², an increase in size of 23% compared to
that previously reported in 2021.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
33
MOU-NE Jurassic structure
Forward Work Programme
Commence drilling MOU-2.
Well planning for MOU-3 and MOU-4 and procurement of long lead time well equipment.
Rigless testing of MOU-1 and, subject to drilling results, MOU-2 and MOU-3.
Successful drilling and testing results would facilitate a Gas Sales Agreement with end-users in the Moroccan
industrial sector based on an accelerated Compressed Natural Gas development scenario. At this point the
Company may seek, if market conditions are attractive, to monetise all or part of its Moroccan asset through
a trade sale of equity in the Group’s subsidiary company Predator Gas Ventures Ltd. If this scenario were to
occur, and subject to independent tax advice, the Company would consider a return of value to shareholders
in the form of a dividend payment.
Onshore Trinidad - CO2 sequestration funded by enhanced oil recovery
Historical background to the Inniss-Trinity field and CO2 EOR project
The producing Inniss-Trinity oil field (“Inniss-Trinity”) is located in the Southern Basin within onshore Trinidad’s
largest oil province, approximately 10 km southeast of the Barrackpore-Penal oil field and approximately 75
km south of the capital Port of Spain.
The Inniss-Trinity Licence is held by the State company Heritage Oil Trinidad Ltd (“Heritage”), formerly
Petrotrin, and covers an area of 23.35 km².
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
34
It is operated under an Incremental Production Services Contract (“IPSC”) by FRAM Exploration Trinidad Ltd.
(“FRAM”), a wholly owned subsidiary of Challenger Energy Group Plc after the acquisition of Columbus Energy
Resources Plc during 2020. The term of the IPSC was extended to 31 December 2021 as a result of the
Company’s pilot carbon dioxide enhanced oil recovery (“CO2 EOR”) project, which provided the work
programme for FRAM to extend further the IPSC. The outstanding FRAM drilling commitment of 7 wells was
replaced by the Company’s CO2 EOR Pilot Project, giving the Company substantial negotiating leverage as the
IPSC was dependent on the Company’s exclusive provision of CO2 EOR services.
To further the initiation and continuance of CO2 EOR operations in Inniss-Trinity, a Heads of Agreement for
CO2 Gas Sales (“CO2 HOA”) was entered into with the only in-country CO2 supplier, Massy Gas Products
Trinidad Ltd. (“Massy”), of surplus liquid anthropogenic CO2, currently collected from one of Trinidad’s several
ammonia plants that presently vent CO2 to the atmosphere. The CO2 HOA is based on a minimum scoping
daily delivery of up to 60 Mt CO2 if required, depending on surplus quantities available. Supplemental
Agreement No.8 dated 17 May 2021 extended the Exclusivity Period given under the terms of the CO2 HOA
until 31 March 2023; at which time the HOA may be extended.
Under a Well Participation Agreement (“WPA”) executed on 17 November 2017 with FRAM, POGTL is entitled
to a portion of all profits generated from incremental enhanced oil production attributable to CO2 EOR
operations under the same commercial terms pertaining to the Incremental Production Services Contract
(“IPSC”) as are currently applicable to FRAM. Under the specific commercial terms of the WPA negotiated by
POGT with FRAM, POGT has capped operating costs at USD10/bbl and will also benefit from off-setting FRAM’s
cumulative tax losses against 50% PPT. POGT is not a partner in the IPSC and therefore has no exposure to any
of the FRAM commitments and liabilities relating to the IPSC. POGT will receive 100% of all operating profits
until payback of its agreed investment of USD1.5 million in CO2 EOR operations. Thereafter after-tax operating
profits will be split 50:50 between POGT and FRAM. Under the WPA, POGT had an option up to 30 September
2020 to acquire FRAM for an agreed sum of USD4.2 million. This option was not exercised.
Under the original WPA, the Company also had an option to acquire Cory Moruga Holdings Ltd., owners of
TRex Holdings Trinidad Ltd. This option was later dropped.
Changes in the ultimate ownership of FRAM Exploration Trinidad Ltd. (“FRAM”) completed in 2020 resulted in
the parent company of FRAM unilaterally terminating the Inniss-Trinity CO2 EOR project in 2021 without prior
consultation with the Company. Through this action the Company believes that the WPA remains legally
binding on FRAM Exploration Trinidad Ltd. pending a settlement in the Company’s favour of certain
outstanding commercial matters that will be the subject of negotiation.
However, under such circumstances the Company decommissioned its CO2 EOR facilities at Inniss-Trinity and
removed the equipment to a place of safe and secure storage.
Importantly, the Inniss-Trinity pilot CO2 EOR Project executed by the Company established “Proof of Concept”
for enhanced oil recovery through CO2 injection and sequestration.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
35
CO2 delivery and injection at Inniss-Trinity
Activities during 2022
The encouraging results from the Phase 3 CO2 injection in the first half of 2021 provide valuable technical and
commercial validation of “Proof of Concept” for the design and resulting effectiveness of CO2 EOR projects for
geologically similar mature producing fields onshore Trinidad.
Pursuant to a Heads of Agreement with Lease Operators Ltd. (“LOL”), a private Trinidadian company, executed
in 2021, the Company carried out a preliminary technical review of the suitability of LOL’s producing PS-1 field
onshore Trinidad for CO2 EOR re-development. At the same time the Company proposed its commercial model
for CO2 EOR to LOL to justify offering its equipment, expertise, knowledge and know-how gained from
executing the Inniss-Trinity CO2 EOR Project. Currently the Company is not sufficiently attracted by the
technical and commercial opportunity presented by the PS-1 Field to warrant taking negotiations with LOL to
the next level.
During the year the Company focussed an increasing amount of management time on securing a settlement
with FRAM and their parent company CEG in respect of outstanding issues surrounding the premature
termination of the Inniss-Trinity CO2 EOR Project.
By the end of the year an agreement had been reached and a binding Term Sheet announced. This provided
for the acquisition of TRex, subject to MEEI consent, settlement of outstanding issues related to the Inniss-
Trinity CO2 EOR Project, and a collaboration with CEG on the potential implementation of CO2 EOR in certain
other mature producing oil fields in Trinidad.
TRex holds an 83.8% equity and operatorship of the Cory Moruga Production Licence containing the
undeveloped Snowcap-1 oil discovery.
Cory Moruga background
The Cory Moruga licence is a direct licence from the Trinidadian Ministry of Energy and Energy Industries
(“MEEI”) in which Challenger Energy’s wholly owned subsidiary T-Rex Resources (Trinidad) Limited (“T-Rex”),
holds an 83.8 % interest, alongside its partner Touchstone Exploration Inc. which has 16.2% interest. T-Rex is
operator.
Cory Moruga lies to the west of the Inniss-Trinity Field and to the southeast of the Barrackpore Field.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
36
Location map for Cory Moruga
The Cory Moruga licence includes the Snowcap oil discovery, with oil previously having been produced on test
from the Snowcap-1 and Snowcap-2ST wells. On the basis of the production tests, a development plan was
submitted in 2018, prior to Challenger Energy taking control of the asset, however, the block was not further
developed. Subsequent to the acquisition of Columbus Energy Resources PLC in 2020, Challenger Energy
undertook a detailed technical review of its Trinidad portfolio and assessed that Cory Moruga field required
further appraisal before a commercial development decision could be made.
Snowcap-1 testing and production test 2011 and 2012
Challenger Energy considers the Cory Moruga licence to be non-core to its cash flow generative production-
focused business in Trinidad, and therefore no further work has been planned for the Cory Moruga field in the
near-term. At the same time, Predator considers that the Cory Moruga field represents an ideal candidate for
a CO
2
EOR project.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
37
Fiscal terms and commercial opportunity
Gross Revenue Production x Price (world price corrected for transport, offset)
Operating Costs Fixed and Variable
Royalty 12.5% of Gross Revenue
Supplemental Petroleum Tax 18% of Gross Revenue minus Royalty – applied above WTI
$70/bo
Petroleum Production Levy 4% of Gross Revenue if production above 3,500 BOPD
Green Fund Levy 0.1% of Gross Revenue
Annual Payments Includes surface, training, scholarship fund
Petroleum Profit Tax 50% of taxable income
Unemployment Levy 5% of taxable Income
Capital Allowances Tangible Capital 36% in year 1 and then 16% for the next 4 years
of the original balance.
Intangible Capital 10% in year 1 and then 20% of remaining
balance in years 2-5
Significant unrealised tax losses exist in TRex with 75% of these allowable each year for offset against annual
profits.
The combinations of unrealised tax losses and the potential for high productivity wells to reduce fixed
operating costs pro-rata for a barrel of oil given the near-virgin field reservoir pressure and the added potential
to apply miscible CO2 EOR creates an attractive commercial proposition.
Forward work programme
Based on an unsuccessful bid by management in 2017 for the Moruga West field, adjoining and extending into
Cory Moruga, the Company believes that there may be substantial overlooked oil resources present in Cory
Moruga. The intention is to prepare the technical material for the commissioning of an independent
Competent Persons Report.
Subject to the consent of the MEEI for the acquisition of TRex, a miscible CO2 EOR project will be designed for
the Cory Moruga asset and well planning will commence for an additional appraisal/development well
currently scheduled for 2024.
Offshore Ireland – Floating Storage and Regasification Unit (“FSRU”)
Background
Mag Mell Energy Ireland Ltd created in 2021 an ambitious liquid natural gas floating storage and regasification
project for the Celtic Sea with the potential to include strategic gas storage.
The project provides a unique and secure essential energy supply to Ireland in the transition period from fossil
fuel to green energy.
Located beyond the horizon the floating gas units are not visible from land and are designed to be user,
consumer and environmentally friendly.
The proposed associated subsurface storage facilities can be used to store natural gas, hydrogen or be used
for CO
2
sequestration.
What is LNG?
Liquefied Natural Gas (LNG) is natural, odourless, nontoxic and non-corrosive gas that has been cooled down
to liquid form to ensure safe storage and transport.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
38
What is a Floating Storage and Regasification Unit (FSRU)?
After transportation to its required destination of consumption, liquefied natural gas (LNG) needs to be
brought back to its gas state (Natural gas is cooled to approximately -160°C at the source of production to
reduce its volume down to 1/600 for better transportation efficiency).
The FSRU receives, stores and warms up LNG for regasification and sends it out as high-pressure gas according
to the customer's demand.
What will the Mag Mell look like?
Providing a bridge during the energy supply transition period over the next decade, LNG Floating Storage and
Regasification units will act just like a land-based LNG terminal. Located out at sea, beyond the horizon, some
50km offshore in the vicinity of the existing (now decommissioned) Kinsale Platform, the FSRU will be
completely invisible from land.
In addition to transporting LNG, the FRSU will have the on board capability to vaporise LNG and deliver natural
gas through the existing Kinsale Head Gas Field subsea pipeline and existing connection to the GNI grid entry
point onshore at Inch.
It is envisaged that the proposed FSRU will be permanently moored to a subsea buoy system anchored
offshore. The buoy system will be used as both the mooring mechanism for the FSRU and the conduit through
which natural gas will be delivered to the subsea pipeline.
The design for the project has focused on ensuring minimal impact on the environment relative to other energy
infrastructure projects and reducing CO
2
emissions. Compared to any other energy supply solution the
environmental impact of this operational arrangement is minimal.
How does it work?
The FSRU collects its cargo at a foreign port via a port jetty facility or offshore LNG carrier located outside
Ireland’s territorial waters via flexible cryogenic hoses, in accordance with established Ship-to-Ship (STS) LNG
transfer protocols.
An FSRU vessel with mooring and loading system Source: APL Offshore
Two special purpose FSRU vessels designed for Celtic Sea weather and mooring conditions will shuttle between
the LNG collection point and the offshore site for regassification and injection into the subsea end of the
existing Kinsale gas pipeline to shore. This maintains maximum deliverability of gas at peak times to ensure a
secure supply of gas to the local market.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
39
The FSRU can receive and deliver full or partial loads in order to meet the required needs of the market at any
given time subject to commercial arrangements.
The regasification (warming) of LNG continues uninterrupted at the mooring site,
Two submerged subsea buoy systems will provide mooring points and gas connections through which natural
gas will then be delivered to the subsea pipeline.
The use of two buoys accommodates the two FSRU vessels to maintain continuous gas production into the
pipeline.
The submerged buoys are anchored to the seabed and pulled into and secured in a mating cone into the FSRU
LNG vessel. When disconnected the buoys drop clear of the FSRU LNG vessels and float submerged
approximately 30-50 meters below sea level.
By using the existing pipeline, terminal and entry point the Mag Mell project’s environmental impact will be
minimal.
LNG provides a substitution for carbon-intensive fuels - an energy option to exercise now.
LNG is a bridging fuel; its use will be reduced and the energy supply diversified.
The Mag Mell project offers near term and safe solution to Ireland’s energy requirements and security of
supply, all year round.
It will deliver energy independence for Ireland and provide a backup for renewables when the Eirgrid capacity
is not met by renewables.
LNG can be competitively priced amidst rising energy costs if seasonal deliveries are tied to developing gas
storage capacity.
The Mag Mell project is committed to delivering on the Irish Government’s Climate Action Plan objectives.
Using existing infrastructure to accelerate the energy transition, Mag Mell provides energy with a low
environmental footprint.
In alignment with the Irish government’s policy pledge not to allow the import of LNG produced from shale
gas, the Mag Mell project will source LNG from a transparent certified origin where there is no reliance on
fracked gas feedstock.
Working in collaboration the Mag Mell project will create opportunities for CO2 and hydrogen storage.
The Mag Mell Project can satisfy 43.4% of Severe Peak Day 2027/28 gas demand.
Maintenance of energy security for Ireland within this transition period depends on the provision of a project
such as Mag Mell, providing security of supply for the national network.
Activities in 2022
During the period under review the Company has mainly focussed on raising the public and Irish Government’s
awareness of the Mag Mell FSRUP LNG gas import option. This was to demonstrate how Mag Mell could
address Ireland’s security of gas supply.
The Company presented its alternative gas import option at the National Energy Summit in Dublin in April
2022. A “White Paper” was issued and circulated to politicians and all significant stakeholders in the energy
sector in Ireland. It demonstrated how gas was needed to seasonally support the national electricity grid when
renewable energy was curtailed by weather conditions. This was followed up by lobbying members of the Irish
Dail in a series of one-to-one meetings.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
40
The Company continues to make submissions to the DECC to delay the decommissioning of the Kinsale gas
pipeline to shore. Currently the Minister for the DECC has not signed off on the decommissioning of this vital
piece of gas infrastructure, which if decommissioned would further weaken Ireland’s security of energy supply.
The Company’s proposed Ram Head gas storage facility would be dependent upon the Kinsale gas pipeline to
shore remaining in place to advance the date for the commissioning of such a storage facility. Ireland has no
gas storage facility and is clearly not contributing at present to the wider energy security of the European
Union despite having the infrastructure and facilities to help with ameliorating the Energy Crisis.
During 2022 many countries across Europe and beyond as a direct result of the Ukraine-Russia conflict and
fears over security of gas supply have moved immediately to secure FSRU capabilities and to increase gas
storage. Ireland has gone from a position where it was presented with a viable solution for security of gas
supply in 2021 to one where there is a very high risk that strengthening of the security of gas supply during
seasonal periods that renewable energy cannot meet the demand for electricity due to unfavourable weather
conditions is devoid of near-term options.
Offshore Ireland – Applications for successor authorisations to Licensing Option 16/26 (“Corrib South”) and
16/30 (“Ram Head”)
Location maps Ram Head and Corrib South (Source: Gas Networks Ireland Network Development Plan 2020)
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
41
No further responses have been received from the DECC regarding the Company’s applications for successor
authorisations for Corrib South and Ram Head. The Company has satisfied all regulatory requirements for the
award of the successor authorisations.
Forward Work Programme
The Company will continue to make submissions that will demonstrate that the FSRU LNG project can be
considered to be very much in the public interest in the context of security of energy supply.
Dialogue will be maintained with the regulatory authorities regarding the applications for successor
authorisations to the Corrib South and Ram Head licensing options.
The Company is currently not planning any third party expenditure on Ireland during 2023 and will only spend
a limited amount of management time supporting its position in relation to its applications for successor
authorisations.
However during 2023 the Company will review the prospect of any progress in Ireland in the near-term, an
outcome of which may be to seek to investigate the potential for redress given the irregularities and anti-
competitive nature of the regulatory process surrounding the applications for successor authorisations.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
42
Principal risks and uncertainties
Exploration industry risks
Oil and gas drilling and operations is a speculative activity and involves numerous risks and substantial and
uncertain costs that could adversely affect the Group.
Mitigation:Where possible the Board aims to build a diversified portfolio of assets so that an adverse outcome
is mitigated by the prospects of favourable outcomes
Oil and gas exploration and development activities are dependent on the availability of skilled personnel,
drilling and related equipment in the particular areas where such activities will be conducted. Demand for such
personnel or equipment, or access restrictions may affect the availability to the Group, particularly relevant
when taking into consideration the Ukraine-Russia conflict and the continuing global hangover of COVID-19
and the increased demand for services and personnel during the early stages of post-COVID global economic
recovery.
Mitigation: Management through many years of experience has a network of independent contractors with
skilled personnel and equipment which it can access
Oil and gas prices are highly volatile, and lower oil and gas prices will negatively affect the Group’s financial
position, capital expenditures and results of operations.
Mitigation: By balancing projects with near-term cash inflow prospects with projects that require long-term
funding the risk is mitigated. Planning includes simulation of downside risk scenarios.
Reserve and resource data and estimated discounted future net cash flows are estimates based on
assumptions that may be inaccurate and on existing economic and operating conditions that may change in
the future.
Mitigation: The Group has considerable experience in project evaluation. It may resort from time to time to
independent expert consultants to verify assumptions. The Group focusses on projects that require relatively
low capital investment but can potentially generate very high rates of return as a means of mitigating against
reduction in discounted future net profits.
The Group is dependent on the successful development of its oil and gas assets.
Mitigation: The Group has diversified its profile away from regular oil and gas exploration by developing CO2
EOR and CO2 sequestration expertise and progressing an FSRU LNG project in Ireland.
The principal sub-surface geological risks that have been identified specific to the Group’s portfolio are as
follows:
Risk 1: In the immediate area of focus for drilling in Morocco, the 2D seismic database is sparse and the
quality and completeness of the well logs in old offset wells pertinent to understanding the geology of the
previously drilled GRF-1 and MSD-1 wells is poor.
Risk 2: MOU-1 provides evidence of over-pressuring of some potential reservoirs which will have to be taken
into consideration for the purposes of safe well planning.
Risk 3: The existing sparse 2D seismic data demonstrate the presence of seismic amplitude anomalies. There
is a risk that these may not be related to the presence of gas reservoirs or the presence of gas in commercial
quantities. The size of the potential gas-generating source kitchen is unknown and therefore there is a risk that
traps may not be efficiently filled to spill. In such circumstances gas resources could be significantly reduced.
Mitigation: Extensive use of offset well data for the geologically analogous, gas-producing Rharb Basin and
information from the Anchois-1 Tertiary gas discovery in the offshore is used to improve the overall knowledge
base. Presence of gas in MOU-1 in the pre-drill section correlating with the mapped seismic amplitude anomaly
has addressed this risk. Rigless testing of MOU-1 can potentially eliminate this risk.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
43
Independent consultants are used to help validate geological and seismic interpretations.
Risk 4: Forecast production rates for CO2 EOR rely on modelled calculations and actual pilot CO2 EOR oil
flow rates and have not been tested yet by continuous CO2 EOR operations. Pilot CO2 EOR operations have
so far calibrated the desktop production forecasts in line with anticipated rates, however there is no
guarantee that production will increase exponentially in line with these predictions as more CO2 is injected
over time. The technical and commercial success of CO2 EOR projects is dependent therefore on a
comparison of the actual operational results versus the pre-injection desktop forecasts. This applies to all
future CO2 EOR projects being considered by the Company.
Mitigation: The Company may use its “Proof of Concept” achieved through the operational results of the
Inniss-Trinity Pilot CO2 EOR Project, and its CO2 EOR services and current exclusivity over surplus liquid CO2
supply to further develop producing assets and undeveloped oil discoveries at attractive prices where some
initial primary oil production can be achieved through low cost well workovers.
Risk 5: The volumes of CO2 required to be injected to increase reservoir pressure from currently low levels
in onshore Trinidad’s mature producing oil fields in order to enhance oil production are estimated using
reservoir models. These models will assume limited vertical and lateral communication of reservoir sand
intervals controlled by faulting and intervening vertical seals. If this is not the case then significantly more CO2
may be required to increase reservoir pressure and potentially enhance oil production should CO2 escape into
other geological formations or adjacent fault compartments. Results to date of the Inniss-Trinity pilot CO2 EOR
project confirm limited lateral and vertical communication across potentially sealing faults. However there is
no guarantee that this situation will be maintained as reservoir pressure increases with continuous CO2
injection or will be relevant to all of Trinidad’s onshore oil fields.
Risk 6: The volume of CO2 to be injected is also estimated on the basis of the remaining volume of oil in place
in the reservoirs using historical estimates made by other operators. If this volume has been under-estimated,
then the volume of CO2 required for injection will be larger and the commerciality of the project may therefore
be impacted.
Mitigation: All modelling of analytical data may be independently reviewed and evaluated by the relevant
technical teams in Heritage and the MEEI as part of the regulatory approval process. Satellite communications
to give real-time data logging and operational management to allow the Group’s management remote-control
monitoring of operational procedures to intervene if required to vary the volume of CO2 being injected and
the injection pressure.
Political risks
All of the Group’s operations are located in a foreign jurisdiction. As a result, the Group is subject to political,
economic and other uncertainties, including but not limited to, changes in policies, particularly in relation to
the fossil fuel industry in the context of concerns regarding climate change, or the personnel administering
them, terrorism, nationalisation, appropriation of property without fair compensation, cancellation or
modification of contract rights, foreign exchange restrictions, currency fluctuations, export quotas, royalty and
tax increases and other risks arising out of foreign governmental sovereignty over the areas in which these
operations are conducted, as well as risks of loss due to civil strife, acts of war, guerrilla activities and
insurrection.
Mitigation: The Group only conducts operations in those countries with a stable political environment and
which have established acceptable oil and gas codes. The Company adheres to all local laws and pays heed to
local customs.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
44
Corporate risk
Risk: The Group’s success depends upon skilled management as well as technical and administrative back-up.
The loss of service of critical members of the Group’s team could have an adverse effect on the business.
The Group is dependent on the executive Directors to identify potential business and acquisition
opportunities in Trinidad, Morocco and Ireland and to oversee and execute its oil and gas operations. The
loss of services of the executive Directors could materially adversely affect it.
Mitigation: The Group periodically reviews the compensation and contract terms of its consultants and
service providers to ensure that they are competitive, but subject to the working capital available to the
Group from time to time. The executive Directors are shareholders in the Group and committed to
developing shareholder value.
Financial and liquidity risks
The Group’s business involves significant, but moderate by comparison with the oil and gas sector in general,
capital expenditure and given the current liquidity position of the Group as at the date of this report the Group
will require additional funding to meet all of its future work programmes if the business of the Group is to
grow. There is no guarantee that such additional funding will be available on acceptable terms at the relevant
time.
Mitigation: Management has demonstrated and continues to demonstrate an ability to raise funds. Through
timely and regular cash flow projections pro-active action is capable of being taken to pre-empt cash deficits.
Such actions may include farm-outs, debt-financing and equity fund raises.
Instability in the global financial system may have impacts on the Group’s liquidity and financial condition that
currently cannot be predicted.
Mitigation: Pre-emptive cut back of new potential licence commitments; careful financial planning, currency
hedging and economic evaluation of opportunities with simulation of risks mitigate against these risks. The
Directors also maintain tight budgetry and financial controls to ensure cash is spent in the most efficient
manner.
Foreign exchange risks
The Group operates internationally and is exposed to foreign exchange risk arising from various currency
transactions, primarily with respect to the Moroccan Dirham, Trinidadian dollar, Euro and US Dollar.
Risks to exchange movements are mitigated by minimising the amount of funds held overseas. All treasury
matters are handled centrally in Jersey. All requests for funds from overseas operations are reviewed and
authorised by Board members. The Group endeavours to reduce its exposure to foreign currencies by holding
cash balances in the currency of intended expenditure and recognises the profits and losses resulting from
currency fluctuations as and when they arise.
As the Group may in the future undertake some project activity offshore Ireland under the terms of
agreements with the Irish regulatory authorities, the Directors currently anticipate that the impact on the
business of the UK’s exit from the European Union will be limited to the effects of potential increased foreign
exchange fluctuations. As a result of these fluctuations, it is expected that the reported results of the Group
may decline in the short- to medium-term. However, the Directors do not expect there to be any significant
lasting impact. The Group does not anticipate any long-lasting impact on accessing overseas services and
importing equipment, although due to increased regulatory processing in such cases, project timelines may be
negatively impacted.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
45
Liquidity risks
The Group’s liquidity risk is currently considered to be insignificant and not material.
The Group does not enter into binding commitments for exploration expenditure unless supported by
adequate cash reserves and working capital. Cash forecasts are updated continuously, and contingencies are
allowed for. The financial exposure of the Group will reduce as it is the intention of the directors to partner
with third parties at the appropriate time in the appraisal and development cycle. The Group structure
facilitates investment in individual projects at the subsidiary company level. The after-tax project economics
for the Group’s portfolio of projects are very robust and support the potential payment of royalties and
dividends to a company wishing to buy equity in a specific project or projects. The Directors believe that the
ability to monetise parts of its portfolio of projects to improve liquidity is viable given the pivotal market
position the Group has established in the jurisdictions within which it operates in respect of developing CO2
EOR and CO2 sequestration, a Compressed Natural Gas market and an LNG import option where currently no
competitors exist in these sectors in the aforementioned jurisdictions.
Environmental risks
The Group is subject to various environmental risks and governmental regulations and future regulations will
become more stringent.
Mitigation: The Group is aware of these risks before it undertakes licence commitments and periodically re-
evaluates these risks
Climate change and climate change legislation and regulatory initiatives could result in increased operating
and capital costs to address reducing CO2 emissions, delays to regulatory and environmental approvals and
decreased demand for, in particular, oil. In addition, investor and lender decision-making criteria are becoming
increasingly dominated by climate change awareness and consequently loss of sentiment for financing the
fossil fuel sector. As a result, it will become increasingly difficult to raise equity and debt finance for traditional
oil and gas activities.
Mitigation: The Group’s strategy has always been since IPO in May 2018 to focus primarily on gas, which is
currently considered as “sustainable” by the EU and suited therefore to accessing green finance, and CO2
sequestration to support “greener” oil production. By focusing on jurisdictions where there is a need to reduce
high levels of CO2 emissions from ammonia plants, imported fuel oil and coal- and oil-fired power stations by
substituting for gas and enacting CO2 sequestration, the Group is demonstrating its commitment to ESG and
sustainability necessary to attract responsible financing of its activities. The Group has positioned itself in the
energy transition space and has the ability to contribute expertise and knowledge necessary for the building
of local green energy hubs based on a symbiotic relationship working in tandem between natural gas, CO2
sequestration, hydrogen production and storage and renewable energy to provide the security of affordable
energy supply and to support and protect local communities through the “economic shock” of the energy
transition process.
Insurance risks
Oil and gas operations are subject to various operating and other casualty risks that could result in liability
exposure.
Mitigation: The Group comprehensively surveys its exposure to these kinds of risks and considers taking either
an appropriate level of insurance cover or self-insuring where judicious.
The Group may not have enough insurance to cover all of its risks. COVID-19 will increase insurance costs.
Mitigation: A judicious quantum of self-insurance may need to be resorted to in these circumstances but
currently the Group has access to appropriate levels of insurance both at the corporate level and for its
operations.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
46
Continuing Coronavirus Risk
The global public health emergency caused by the spread of the coronavirus is now well documented. COVID
pervasively impacted negatively global economies; financial and equity markets, including pension funds; forex
exchange rates; oil and gas commodity prices, caused by collapsing demand, particularly from the aviation
industry, and storage capacity being over-saturated; and general investor and debt-financing sentiment.
Divergent variants of coronavirus will create a significant public health risk for the foreseeable future and
vaccination programmes will continually require monitoring and updating.
The principal risks identified are:
Risk 1: Suspension of international travel between many different jurisdictions which impact the Group’s
field operations insofar as specialised drilling engineers and technicians are unable to be despatched from
overseas to operate, install or repair key pieces of equipment necessary, in particular, for the conduct of safe
drilling operations.
A further consequence is the inability (or a delay) to mobilise drilling services and equipment from overseas
that may not be available in the country of the Group’s operations.
The potential introduction of new coronavirus travel restrictions cannot be ruled out but the timing of any
such moves is not predictable due to varying rates of the spread of coronavirus throughout a potential future
pandemic.
Mitigation: The Star Valley drilling rig is currently on location in Morocco at Guercif at no cost to the Group.
Commitments to further rig mobilisation and an enactment of a drilling contract are only made with the
approval of the public health authorities if and when required if COVID were to re-emerge in a pandemic form.
The Group maintains a close dialogue with drilling services providers to determine which services remain in-
country, and also the rig contractor, to ensure the Group is “drill-ready”.
Risk 2: Restricted ability to operate in-country activities such as drilling and site construction due to local
restrictions on travel and enforceable social distancing measures.
Mitigation: Trained in-country personnel are available as a result of the Company’s Inniss-Trinity pilot CO2 EOR
project to ensure continuity of CO2 EOR operations within the framework of HSE public health restrictions if
and when enabled by the Trinidadian government from time to time. CO2 EOR is seen as an essential industry.
Secure satellite communications linked to a datalogger may from time to time allow the Group’s management
real-time remote control monitoring of operational CO2 injection parameters and procedures.
Risk 3: Supply chain issues caused by equipment not being available for purchase or delayed by customs if
imported from overseas.
Mitigation: CO2 EOR spares and equipment are in a secure warehouse and yard in Trinidad to cover immediate
requirements. Drilling inventory for Guercif also remains accessible for purchase by the Group, at the
appropriate time.
Risk 4: Collapsing oil and gas commodity prices caused by global economic slowdown, over-supply, falling
demand and storage filled to capacity.
Mitigation: Project economics for CO2 EOR operations in Trinidad have been stress-tested at WTI
USD25/barrel and are marginally commercial based on Trinidad’s requirement for domestic oil production to
replace imports. Robust and commercially viable project economics for Guercif have also been re-run at much
lower gas prices, under-cutting lower imported fuel oil prices, with a Compressed Natural Gas development
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
47
scenario that fast-tracks an initial development of a gas discovery to the captive Casablanca industrial market
that currently relies on less efficient fuel oil imports.
The Group’s business development strategy is focussed on niche local energy markets where pricing of and
demand for oil and gas is not as severely impacted by the global supply and demand dynamics.
Risk 5: Insufficient liquidity and working capital, under-capitalisation, lack of revenue, contractual liabilities
and unfulfilled work commitment obligations.
Mitigation: During the period to 31 December 2022 the Group has completed two Placings to raise GBP4.335
million (before expenses). The Group has sufficient liquidity and working capital over the next 12 months to
weather any additional impact from a resurgence of the coronavirus pandemic and any resulting volatility in
the financial, equity and commodity markets caused by the Ukraine-Russia conflict and inflationary pressures.
A contingency to shut down any projects would be maintained to avoid any loss-making business activities.
No new financial commitments or work programme liabilities will be entered into unless funding for them is
secured. Future new drilling proposals for the Guercif PA may be developed, subject to further funding and/or
farmout, to be executed in 2023 but can be delayed until 2024 should a resurgence of coronavirus or global
financial market conditions dictate that preservation of working capital were to become an overriding priority.
Releasing USD 1.5 million of the Guercif PA bank guarantee in favour of ONHYM is a longer term strategic
objective of the Group should working capital become too constrained but is unlikely to be enacted in the
short-term as the bank guarantee will be rolled over to support entry into the First Extension Period of the
Guercif Petroleum Agreement without the requirement to put up another larger bank guarantee in favour of
ONHYM.
The Group were granted by ONHYM a one-year extension of the Initial Exploration Period of the Guercif PA on
the basis that the coronavirus emergency was a Force Majeure event. A similar extension could be reasonably
expected if a new coronavirus pandemic emerged.
The Group will maintain a “drill-ready” status in Morocco, and only enter into financial liabilities that can be
funded from the available working capital, farmouts and/or additional financing in the equity markets. The
Group will use its discretion to choose when to enact any new future Guercif drilling programmes in the context
of first re-assessing market sentiment and market conditions and management’s opinion as to prudent use of
available working capital.
The Company is debt-free except for loans made by directors to the Company.
Risk 6: Inability to access the capital markets for equity finance or the lending market for debt finance.
Mitigation: The Group’s CO2 EOR operations in Trinidad were commissioned prior to the coronavirus
emergency. The initial CO2 injection phase and monitoring of reservoir pressure build-up and enhanced oil
production was commenced and successfully and safely completed on time during the coronavirus pandemic
consistent with the Group’s pre-coronavirus project schedule. The Group completed its MOU-1 well in
Morocco during 2021 and suspended the well for future rigless testing. Therefore the Group has shown that it
can successfully fund and execute projects during a coronavirus pandemic.
The Group is well-capitalised and is positioned for near to medium term cash flow from operations in Morocco
through an early CNG development model and in Trinidad through the conditional acquisition of TRex and an
83.8% interest and operatorship of the Cory Moruga Production Licence. The Group has no immediate
requirement to access the capital or lending markets to execute its near-term committed work programmes.
The Group will however always remain open to accessing additional equity funds within the next 12 months if
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
48
it can be shown that this would further develop the Group’s business and lead to increased shareholder value
and maintain undiluted project equity without excessive shareholder dilution.
Guercif remains an integral part of the Company’s business development strategy and the value proposition,
given the size of the targets versus the Group’s current market capitalisation and the ability to monetise by
capitalising upon Moroccan industry’s heavy reliance on imported fuel. It remains an important and
sustainable driver for share price performance. Coronavirus had no lasting impact on the fundamentals of the
value proposition that Guercif presents.
The Boards’ view is that the global economy will rebound despite high energy and commodity as under-supply
factors are ameliorated by increased exploration and development activity. This is already beginning to happen
through roll-out of floating LNG terminals in Europe. Shut-in production may be re-established in this transition
period. The equity markets will recover, and the pace of the recovery will accelerate as investor sentiment
returns. There will be a strong appetite for companies with gas assets and with developing ESG and
Sustainability credentials who have weathered the coronavirus storm and that have potential for immediate
growth to support appreciation in share price through contributing to security of energy supply. Many peer
companies will be seeking to re-capitalise quickly as the equity markets improve but will not have gas projects
as sufficiently advanced as Guercif or as commercially attractive in the near-term to promote to attract new
investors. The Company has started discussions with suitable candidates to join us in our various projects at
the appropriate time and for a consideration that reflects the investment made by the Group in its projects,
the market opportunity, and the risk versus reward value proposition.
The Company has developed projects that require a low quantum of capital investment suited to the size of
the market appetite for a small cap company listed on the Standard List segment of the Main Market in London.
Risk 7: Curtailment of expansion of business development activities necessary to support value creation and
shareholder equity values, and reduction in the potential to generate future revenues from such activities.
Mitigation: The Group’s business development strategy continues to be focussed on niche local energy
markets where pricing of and demand for oil and gas is not severely impacted by the global supply and demand
dynamics.
Developing new CO2 EOR operations in Trinidad, now that the pilot CO2 EOR project has been de-risked and
“Proof of Concept” has been confirmed, can be implemented for very small incremental amounts of capital
deployment, inclusive of additional well workovers for CO2 EOR production, that can potentially be recovered
within a few months from incremental production revenues.
The Group has also started the process of identifying and evaluating suitable assets in Trinidad with attractive
synergies for applying our existing Inniss-Trinity CO2 EOR expertise. The Cory Moruga Production Licence held
by TRex has been identified as a pivotal asset that meets the Company’s business development strategy for
Trinidad. The Group has opened a dialogue with several operators with a view to supplying our CO2 EOR
services. Commercial terms that the Group can potentially negotiate will be driven by the fact that the Group
is well-capitalised; has exclusivity over CO2 supply; and most importantly has developed the template for a
viable CO2 EOR project that meets all regulatory and environmental conditions required for approvals to be
granted to execute field operations. The Group also notes that the extension of existing Incremental
Production Services Contracts in Trinidad will now also require a commitment to executing secondary recovery
work programmes (waterflood and CO2 EOR). Historically waterflood has not been very successfully applied
in Trinidad for increasing secondary recovery in mature oil fields where oil gravity and oil viscosity is high.
This prudent and low cost expansion of the Group’s business development activities. focussed on de-risked
CO2 EOR operating success, can potentially support value creation and shareholder equity values and address
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
49
any perceived reduction in the potential to generate future revenues from such activities as a result of the re-
emergence of the coronavirus pandemic.
The Group has successfully progressed and further developed its business strategies during the coronavirus
pandemic and is well-positioned for business growth going forward.
Future developments
The Group’s immediate priority remains to execute in the very short term its current drilling programme
(MOU-2) in Guercif in Morocco. The Group continues to be “drill-ready” with an in-country rig available to it
under a rig option agreement with Star Valley and an approved Environmental Impact Assessment (“EIA”) for
up to five further wells. New well locations and well budgets have to be approved by its government partner
ONHYM. It is anticipated at present that follow-up drilling operations to MOU-2 will take place during 2023.
The Group has developed an economic model for a nearer term gas monetisation strategy for Guercif that
involves CNG being transported to the industrial centres of Morocco. The size of the initial gas market has
been assessed and capital and operating costs have been tailored to fit the immediate marketing opportunity.
The Group’s experience and expertise with engineering, costing and developing the CO2 EOR project in
Trinidad will be applied to the CNG project in Morocco. The “drill-ready” status, the ability to monetise gas for
relatively low amounts of capital investment and with low operating costs, tax- and royalty-free production on
the first 10.6 BCF of net gas, and high profit margins based on the high price (USD10 -12/mcf) paid by
Moroccan’s industrial gas users will be the Group’s marketing tools to attract financing and potential joint
venture partners, if required, to help fast-track an early gas development.
The Group’s near-term priority is to focus on developing potential cash flow from CO2 EOR operations onshore
Trinidad where some element of primary production can be added through low cost well-workovers. The CO2
delivery and injection system is readily accessible and the supply of CO2 is secured until at least 2023 and can
be extended subject to mutual agreement between Massy and the Company. The Inniss-Trinity pilot CO2 EOR
has demonstrated proof of concept. In addition the Company has announced a creative solution to settle its
dispute with FRAM Exploration Trinidad Ltd. (“FRAM”), parent company Challenger Energy Group plc, based
on its assessment of the value in the prematurely terminated Inniss-Trinity CO2 EOR project to the Company
that is defined by the Inniss-Trinity Well Participation Agreement and subsequent amendments thereof. The
Company has agreed to offset USD1,500,000 in investment costs including an indicative amount of accrued
profits from past enhanced CO2 EOR oil production revenues via an acquisition of TRex’s 83.8% interest in the
Cory Moruga Production Licence, conditional on MEEI approval, which has attributes suitable for the
application of miscible CO2 EOR operations.
The Group has re-positioned its business strategy for Ireland to focus on offshore regasification of LNG and gas
storage in accordance with EU guidelines for member States. Confidentiality agreements have been signed
with the provider of re-gasification vessels (“FSRU”) and a downstream gas trading company based on the
Group’s presentation of the marketing opportunity for gas in Ireland together with its potential contribution
to security and diversity of energy supply and its ability to provide back-up power at times of peak electricity
demand. The Group continues to engage with regulatory authorities and infrastructure owners in Ireland in an
application for an LNG import licence. A technological solution is being matured to supply between 250 and
275 mm to the end of the Kinsale gas pipeline, subject to regulatory consent. The near-term goal is to further
refine this solution and to demonstrate its ecological and environmental benefits relative to other energy
infrastructure projects (including renewables) in preparation for an application for Marine Area Consent. The
Irish regulatory hurdles remain very high and challenging, but the Group recognises that the Irish government
has completed a process of public consultation on, amongst other matters, security of energy supply, thus
creating a window of opportunity for the Group to take advantage of by leveraging its management’s relevant
experience, know-how and expertise.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
50
Securing the award of the Group’s Corrib South and Ram Head successor authorisations remains a priority as
these gas assets adjacent to infrastructure can potentially significantly further enhance the enterprise value of
the Group’s portfolio in terms of potential M & A activity.
Liquidity remains a fundamental priority for the Group. The Company’s business assets are commercially
robust, well managed, operated efficiently and have significant growth potential. Market appreciation of
management’s business strategy for developing shareholder value has been demonstrated during the year
through the completion of two Placings to improve liquidity during very difficult and challenging times in the
financial and equity markets.
Sustainability Report
The Group is committed to sustainable development of its gas assets and its CO2 EOR business incorporating
anthropogenic CO2 sequestration.
To sustain our business, we must meet the expectations of our stakeholders and focus on mitigating climate
change, advancing the circular economy so that nothing goes to waste and implementing responsible business
practices.
The short- and medium-term goal is to be a producer of energy that replaces more carbon-intensive fossil fuels
during the energy transition, thereby lowering CO2 emissions in a pragmatic and achievable manner. Best ESG
and Sustainability practices can be applied to utilising and preserving existing infrastructure and subsurface
gas storage options for the eventual roll out of green hydrogen. During this psychologically emotive period of
change maintaining security of energy supply by using gas to help decarbonize the energy sector by replacing
more carbon-intensive oil and coal is an absolute socially just necessity to control inflation in energy prices and
spiraling cost of living and interest rate rises generated mainly by unsustainable energy price hikes due to an
excess of demand over capacity caused by the Ukraine-Russia conflict and squeezing of gas and oil supplies,
much of which is being re-directed to China and Asia due to Europe’s lack of pragmatic realism in how to enact
the Energy Transition. Demonstrable CO2 sequestration is an added advantage of the business strategy that
we have adopted. Natural gas in tandem with hydrogen storage can provide back-up to interruptible power
from wind and solar energy to improve resilience of grid supplies and potential project economics. Expanding
our responsible business practices is a key benefit for our people, partners and the communities that are
affected by our supply chain. Security of affordable energy supply and supporting in a just, fair and equitable
manner the energy transition to ameliorate the negative economic impact on local communities currently
dependent on traditional forms of energy is a key objective of the Group. No-one can be left behind in the
Energy Transition.
At the corporate level, since the advent of the Covid-19 emergency in late March 2020 our management
operate our business from home-based locations, thereby reducing the high level of energy consumed by a
fixed office location and eliminating the CO2 emissions footprint left by commuting to work by many forms of
transport that emit pollutant CO2.
The practical and pragmatic ways in which the Group are enacting its climate awareness strategy in the period
under review are described in detail in the section on ESG metrics and Sustainability.
Paul Griffiths
Executive Chairman
27 April 2023
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
51
Report of the directors
The Directors present their report together with the audited financial statements for the year ended 31
December 2022.
The Company’s Ordinary Shares were admitted on 24 May 2018 to a listing on the London Stock Exchange on
the Official List pursuant to Chapters 14 of the Listing Rules, which sets out the requirements for Standard
Listings.
Results and dividends
The Directors do not recommend the payment of a dividend (2021: nil).
Directors
The Directors who served during the year and up to the date hereof were as follows:
Date of Appointment
Paul Griffiths 21 December 2017
Lonny Baumgardner 12 July 2021
Steve Staley 24 May 2018 (resigned 8 March 2022)
Louis Castro 13 July 2020 (resigned 31 May 2022)
Tom Evans 12 May 2022 (resigned 24 October 2022)
Alistair Jury 12 May 2022
Carl Kindinger 24 October 2022
For directors interests, please refer to remuneration report on pages 68 to 73.
Directors Third Party Indemnity Provisions
The Group maintained during the period and to the date of approval of the financial statements, indemnity
insurance for its Directors and Officers against liability in respect of proceedings brought by third parties.
Going Concern
Notwithstanding the operating loss incurred during the period under review and following the completion of
two successful placings to raise GBP4,335,000 (before expenses); the exercise of executive directors’ share
options to raise a further GBP749,276 subscription cost; directors’ loans to raise an additional GBP414,621;
and exercise of Broker Warrants to raise an aggregate amount of GBP242,253 and a further successful placing
post the reporting period to raise GBP2,000,000 before expenses, the Directors have a reasonable expectation
that the Group will not need to raise funds to continue with its firm operational commitments and to meet
all of its current contractual liabilities for the foreseeable future.
The planned major initiative for 2023 is the drilling of the MOU-2 well in Morocco. The costs for this well are
currently based on an Approved Financial Expenditure cost (“AFE”) based on actual quotes for well equipment
and well services. Savings have been made in the drilling programme based on the MOU-1 learning curve.
Furthermore MOU-1 drilling costs included a large element of VAT that cannot now be recovered until
production is established due to very short lead time the Company had in 2021 before accepting the Star Valley
rig 101 from SDX Energy Plc.
A negotiation with ONHYM is to take place with respect to the timing of the return of USD1,000,000 of the
USD1,500,000 Bank Guarantee versus entry into the First Exploration Period of the Guercif Petroleum
Agreement.
The Company is planning an additional discretionary drilling programme in Guercif in 2023 (MOU-3 and MOU
4), to advance potential to develop a CNG project, which will be subject to new funding either at the project
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
52
level via a farmin or other form of financial arrangement for project equity or from an additional placing in
the equity markets. If successful, the Company will enter the next phase of the Guercif Licence at which time
the discretionary work programme completed in 2023 will contribute towards the work programme agreed
for the next phase of the Guercif Licence and the Bank Guarantee may be rolled over too to avoid the
requirement to put in place a new or higher bank guarantee for the First Extension Period of the Guercif
Petroleum Agreement.
Post the reporting period the Company believes that, subject to the results of desktop studies and the
completion of the drilling of MOU-3 following on from MOU-2, it will have satisfied the drilling commitment
for the Initial Exploration Period and the First Extension Period. The GBP2,000,000 placing funds raised post
the reporting period provided sufficient working capital for drilling MOU-3.
On this basis the Directors have a reasonable expectation that in the currently unforeseen worst case scenario
that the Guercif project does not proceed then the Company will be in a position to demonstrate that it has
satisfied its existing contractual commitments.
The MOU-1 well drilled in 2021 was completed for rigless well testing on the basis of the presence of formation
gas and petrophysical wireline log interpretation by NuTech indicating gas in the primary pre-drill reservoir
target.
The well is therefore a potential gas producer subject to rigless testing results.
Post reporting period the Company announced on 7 March 2023 that “In conformance with the current
Moroccan regulatory procedures for rigless well testing, the Company has expressed in writing to the Office
National des Hydrocarbures et des Mines (“ONHYM”) the intention to test MOU-1”.
Therefore there are no circumstances at present for the Company to consider an impairment provision for
MOU-1 accumulated costs.
Post reporting period the MOU-2 well was drilled in January 2023. The Company announced on 25 January
2023 that the MOU-2 well had been suspended at 1,260 metres measured depth above the primary pre-drill
reservoir target.
At 1,260 metres Measured Depth a decision to suspend the well was taken as rates of penetration had dropped
to below 1 meter/hour.
A re-entry and deepening of MOU-2 will be fully evaluated once a solution to optimising the drilling mud
programme and mud properties has been completed.
Different options for the drilling muds required to improve rate of penetration in the well are currently being
evaluated in Aberdeen laboratories. Once these options have been finalised and a compatible drilling mud is
chosen the estimated time for sourcing and importing the required drilling fluids and chemicals will be
determined and only at that time will a re-entry of MOU-2 be assessed and costed. This whole process is
anticipated to take several months. In the meantime the MOU-2 well has been safely suspended for future
well re-entry and the Star Valley rig remains on location at no cost to the Company.
As MOU-2 did not reach the pre-drill primary target, which is still accessible in the well through a properly
engineered re-entry, there is no basis to consider an impairment provision for accumulated MOU-2 well costs
to date.
CO2 EOR in 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
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
53
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 year the Company decided to begin the process of exploring with FRAM a mutually beneficial
resolution of the issues relating to consequential losses potentially suffered by the Company as a result of the
Company’s view that FRAM had breached the terms of the Inniss-Trinity Well Participation Agreement and for
FRAM’s failure to repay the Loan advanced to FRAM repayable out of profits arising from the sale of CO2 EOR
enhanced oil production during 2020 and 2021.
At the end of the year the Company had agreed a legally binding Term Sheet whereby it would acquire (the
“Acquisition”) Challenger Energy Group Plc’s (“CEG”) wholly owned subsidiary TREX Holdings Trinidad Ltd.
(“TRex”). TRex holds an 83.8% interest in Cory Moruga.
The terms of the Acquisition include acquiring 100% of the issued share capital of TRex.
A Condition Precent for Completion of the Transaction is that the 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 Gross Consideration for the Acquisition is USD9 million.
The Cash Consideration is USD3 million payable in 3 stages – USD1.0 million on Completion; USD1.0 million 6
months after completion; and USD1.0 million once production from Cory Moruga reaches 100 bopd.
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 USD4.6 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 USD360,096advanced as cash and
USD402,120 and GBP26,461 advanced as equipment would be written off. The balance of the USD6 million
remaining represents a nominal cost for supplying the CO2 EOR expertise and know-how to facilitate the
planning and execution 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. No other company in Trinidad
can currently offer the MEEI this short-term option.
The Gross Consideration of USD9 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 USD65 was demonstrated to be
USD18.3/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.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
54
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 USD1,000,000 on Completion. The Directors have a reasonable expectation that the
Consideration will be subject to new funding either at the project level via a farm-in or other form of financial
arrangement for project equity or from an additional placing in the equity markets.
On this basis the Directors have a reasonable expectation that in the currently unforeseen worst case scenario
that the Cory Moruga project cannot be funded, then the Company will have an opportunity to sell POGT to
an existing indigenous operator in Trinidad on the basis of transactions that are regularly executed for assets
onshore Trinidad, an example post the reporting period being the recent sale of the South Erin onshore field,
by Caribbean Rex Trinidad Ltd for a cash consideration of USD1.5 million as announced on 14 February 2023.
The Cory Moruga opportunity combined with POGT’s CO2 EOR equipment and database may be a potentially
attractive proposition for indigenous Trinidadian companies.
For the Going Concern if there were to be a projected working capital shortfall within the next 12 months,
then the directors will institute a programme of cuts to directors’ and consultant’s remuneration and other
third-party corporate costs until such time as the USD1,500,000 Guercif Bank Guarantee in favour of ONHYM
is returned through a sale of the Guercif asset in a currently unforeseen worst case scenario, or failing this
then the Directors would seek to raise additional funds in the equity markets, assuming that no farmout of
project equity had occurred by such time as additional working capital was required.
The Company has no third party debt. Related party loans by executive Directors have been made to the
Company.
The Directors do not believe that either a resurgence of COVID or Brexit will adversely influence the Group’s
business development strategy. Operations in Morocco can be maintained if that were to occur based on the
operating practices established for the drilling of MOU-1. Brexit will only create more uncertainty for Ireland’s
security of gas supply, thereby enhancing the Company’s LNG import project for Ireland by creating an
alternative source of gas not tied to the UK-Ireland gas transmission infrastructure.
Rising commodity prices and diminishing opportunities due to climate change concerns may potentially create
more opportunities for the Company to divest assets if required to do so as the appetite for gas assets and
ESG credentials increases as a result of the “Energy Crisis” and investors’ concerns regarding aligning
investment with ESG credibility.
The directors having made do and careful enquiry, are of the opinion that the Group has adequate working
capital to execute its operational commitments over the next 12 months given that current spending
commitments will prevail. The Group will therefore continue to adopt the going concern basis in preparing
the Interim Report and Financial Statements.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
55
Substantial shareholders
Within 30 days of signing the financial statements, the total number of issued ordinary shares with voting
rights in the Company was 399,968,959. The total number of issued ordinary shares was 399,968,959,
following the below transactions:
1. On 9 March 2023– Warrant options exercised, for 2,035,714 ordinary shares
2. On 3 April 2023 - Placing of 14,174,056 ordinary shares
Ordinary shares
held
% Holding of the
Company
HARGREAVES LANSDOWN (NOMINEES) LIMITED <15942> 62,661,548
15.67%
INTERACTIVE INVESTOR SERVICES NOMINEES LIMITED <SMKTISAS> 50,547,102
12.64%
INTERACTIVE INVESTOR SERVICES NOMINEES LIMITED <SMKTNOMS> 33,144,141
8.29%
BARCLAYS DIRECT INVESTING NOMINEES LIMITED <CLIENT1> 26,297,742
6.57%
HARGREAVES LANSDOWN (NOMINEES) LIMITED <HLNOM> 25,639,946
6.41%
HARGREAVES LANSDOWN (NOMINEES) LIMITED <VRA> 21,995,568
5.50%
DAVYCREST NOMINEES <DLC> 18,549,823
4.64%
HSDL NOMINEES LIMITED <MAXI> 17,727,065
4.43%
LAWSHARE NOMINEES LIMITED <SIPP> 14,821,486
3.71%
LAWSHARE NOMINEES LIMITED <ISA> 12,543,202
3.14%
VIDACOS NOMINEES LIMITED <IGUKCLT> 12,504,974
3.13%
TOTAL 296,432,597 74.11%
Financial instruments
Details of the use of financial instruments by the Group are contained in note 16 of the financial statements.
Greenhouse gas emissions
The Group does not have responsibility to disclose any other emission producing sources under the Companies
Act 2006 (Strategic Report and Directors’ Report) Regulations 2014. However, Management is committed to
reducing its greenhouse gas emissions. As disclosed above, amongst other measures taken, virtual meetings,
the use of drones to inspect operational sites, and a more flexible home-based working environment will
reduce the amount of travel required by management as part of their duties in overseeing the Group’s
projects.
Statement of Directors' responsibilities
The Directors are responsible for preparing the Strategic Report, the Directors' Report and the financial
statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each financial year. Under that law
the Directors have elected to prepare the financial statements in accordance with International Financial
Reporting Standards (IFRSs’) as adopted by the EU and applicable law.
Under Company law the Directors must not approve the financial statements unless they are satisfied that
they give a true and fair view of the state of affairs of the Group and the Company and of the profit or loss of
the Group for that period. In preparing these financial statements, the Directors are required to:
* Select suitable accounting policies and then apply them consistently;
* Make judgements and accounting estimates that are reasonable and prudent;
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
56
* State whether applicable accounting standards have been followed, subject to any material departures
disclosed and explained in the financial statements;
* Prepare the financial statements on the going concern basis unless it is inappropriate to presume that
the Group will continue in business.
In accordance with Article 103 of Companies (Jersey) Law 1991, the Directors are responsible for keeping
adequate accounting records that are sufficient to show and explain the Group’s transactions and disclose with
reasonable accuracy at any time the financial position of the Group and enable them to ensure that the
financial statements comply with the requirements of Companies (Jersey) Law 1991 as a whole.
They are also responsible for safeguarding the assets of the Group and hence for taking reasonable steps for
the prevention and detection of fraud and other irregularities.
They are further responsible for ensuring that the Strategic Report and the Report of the Directors and other
information included in the Annual Report and Financial Statements is prepared in accordance with applicable
law in the United Kingdom.
The maintenance and integrity of the Group’s website is the responsibility of the Directors; the work carried
out by the auditors does not involve the consideration of these matters and, accordingly, the auditors accept
no responsibility for any changes that may have occurred in the accounts since they were initially presented
on the website.
Legislation in Jersey governing the preparation and dissemination of the accounts and the other information
included in annual reports may differ from legislation in other jurisdictions.
Directors’ responsibilities pursuant to DTR4 (Disclosure and Transparency Rules)
The directors confirm to the best of their knowledge:
The group and company financial statements have been prepared in accordance with IFRSs as
adopted by the European Union and Article 4 of the IAS Regulation and give a true and fair view of
the assets, liabilities, financial position and profit and loss of the Group and Company; and
The annual report includes a fair review of the development and performance of the business and
financial position of the group and company together with a description of the principal risks and
uncertainties.
Future developments
The Group’s plans for future developments are more fully set down in the Group strategic report, on pages 7
to 50.
Corporate Governance
The Group’s corporate governance are reflected on corporate governance report, on pages 61 to 67.
Statement as to Disclosure of Information to the Auditor
So far as the Directors are aware, there is no relevant audit information of which the Company’s auditor are
unaware, and each Director has taken all the steps that he ought to have taken as a Director in order to make
himself aware of any relevant audit information and to establish that the Company’s auditor is aware of that
information.
We confirm to the best of our knowledge:
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
57
The financial statements, prepared in accordance with the relevant financial reporting framework, give
a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and the
undertakings included in the consolidation taken as whole;
The strategic report includes a fair review of the development and performance of the business and the
position of the Company, and the undertakings included in the consolidation taken as a whole, together
with a description of the principal risks and uncertainties that they face; and
The annual report and financial statements, taken as a whole, are fair, balanced and understandable
and provide the information necessary for shareholders to assess the Company’s position and
performance, business model and strategy.
Auditors
The Company’s auditor, PKF Littlejohn LLP, was initially appointed on 4 December 2017 and it is proposed by
the Board that they be reappointed as auditors at the forthcoming AGM. The auditors have expressed their
willingness to continue in office.
Events after the reporting date
These are more fully disclosed in Note 24.
By order of the Board
Lonny Baumgardner
Managing Director
27 April 2023
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
58
Board of Directors
Paul Griffiths, Executive Chairman (age 69)
Mr. Griffiths has 46 years’ oil and gas industry experience, including with the Libyan National Oil
Corporation and Gulf Oil and as consultant to Enterprise Oil, Amoco (Mediterranean) and the Arabian Gulf
Oil Company, amongst others, and as CEO of both Island Oil & Gas plc and Fastnet Oil and Gas plc.
During
this time Mr. Griffiths has managed 2D and 3D seismic data acquisition and processing
projects
onshore and offshore; drilling and testing programmes, both onshore and offshore; and
geological and
reservoir simulation desk top studies. Mr. Griffiths is also experienced in business
development in respect
of licence acquisitions, farm-ins, farm outs, gas marketing and gas sales
contracts and negotiations with
government agencies. In 2006, Mr. Griffiths put together and led the
team that drilled the first successful
exploration well in offshore southeast Ireland in 16 years. In 2008
he put together and led the team that
generated and submitted the plan of development for the
Amstel Field in the Netherlands and in 2014
he put together and led the team that carried out the
Tendrara gas field re-evaluation prior to a successful
appraisal drilling program by Sound Energy. He has 17 years specific experience in the Moroccan oil and gas
sector. He is a director of H2Green Power Ltd and also was a contributor to the government of Trinidad’s CO2
EOR Steering Committee established in 2021.
He has led Predator Oil & Gas Holdings Plc since 2018 and has been instrumental in bringing the Mag Mell
FSRU project to the attention of Irish politicians and regulatory authorities in two years in advance of the 2022
European Energy Crisis.
He is a geology graduate of the Royal School of Mines (London) and an Associate of the Royal
School
of Mines.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
59
Lonny Baumgardner, Managing Director (age 51)
Mr. Baumgardner has more than 30 years oil & gas experience and has been involved at every stage within
the exploration and production lifecycle. Having started his career as a Drilling Engineer in his native Canada,
he advanced his career towards Operations Management and General Management, in various international
locations such as the USA, Greece, Tanzania, Saudi Arabia, Kuwait, Egypt, Australia, and Morocco.
In 2015 he was appointed Country Manager for SDX Energy in Morocco, responsible for all areas of the
business including production, license acquisitions, foreign and domestic negotiations and Governmental
relations. Under Mr. Baumgardner’s leadership, production and natural gas sales were tripled and the
organization was able to achieve seven new customers after the success of drilling over 20 wells. His
emphasis on corporate social responsibility meant that every employee within the organization was able to
succeed.
Developing relationships has been an underlying skill throughout his career and the foundation of his
successes internationally have been bred through understanding and respecting regional nuances.
Alistar Jury, Non-Executive Director (age 57)
Alistair Jury has over 27 years’ experience in the energy industry in a variety of finance and commercial
experience in a variety of roles with ExxonMobil, Unocal, Murphy, Svenska Petroleum. He is an associate of
Columbus Energy Partners involved in evaluating renewable and sustainable energy projects worldwide. He
has a degree in Geology from University of London, is a Fellow of the Geological Society and is a Fellow member
of the Association of Chartered Certified Accountants.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
60
Carl Kindinger, Non-Executive Director (age 71)
Carl Kindinger, aged 71, for 30 years has held senior corporate finance roles, including board level
appointments, in a multitude of industries.
He is an associate member of the UK’s Institute of Chartered Management Accountants and holds a degree
in economics and an M.B.A.
His experience has been gained in large and medium sized companies in Africa, the Middle East, in particular
Saudi Arabia, Ireland and Romania. He has participated both at executive committee and board level in
strategic decision making. Carl has track record in high level negotiations with JV partners, suppliers and
principals. He is skilled in financial planning and control; evaluation of projects; Stock Exchange IFRS
reporting; IPO requirements; business plans and performance evaluation. He has held managerial roles and
non-executive director appointments in several listed SME sector oil and gas exploration companies spanning
two decades. He joined the Board of AIM-listed Island Oil & Gas Plc as Chief Finance Officer in 2006 and
assisted with developing Island’s position in Morocco. Later he joined Fastnet Oil & Gas Plc consulting on
finance matters relating to Morocco. Carl is a former Non-executive Chairman of the Company.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
61
Corporate Governance Report
The Chairman of the Board of Directors of Predator Oil & Gas Holdings Plc (‘Predator’ or ‘the Company’ or’ the
Group’ or ‘we/our’) has a responsibility to ensure that Predator has a sound corporate governance policy and
an effective Board.
The Board has not adopted, but voluntarily follows, the Quoted Companies Alliance Corporate Governance
Code (“QCA Code”). The QCA Code identifies ten principles to be followed in order for companies to deliver
growth in long-term shareholder value, encompassing effective management with regular and timely
communication to shareholders. This report follows the structure of those principles and explains how we have
applied the guidance as well as disclosing any areas of non-compliance.
We will provide annual updates on our compliance with the code. The most recent update is included in the
current Annual Report available on the website. The Board considers that the Group complies with the QCA
Code so far as is practicable having regard to the size, nature and current stage of development of the Company.
The sections below set out how the Group applies the ten principles of the QCA Code and sets out areas of
non-compliance.
Principle 1: Establish a strategy and business model which promotes long-term value for shareholders
The Company is an oil and gas exploration specialist, with operations in Morocco, Trinidad and Ireland. Our
goal is to deliver long term value for our shareholders. We aim to do this by identifying prospective and early-
stage exploration projects. Consequently we:
use our expertise to identify areas with economically feasible resources,
assess the business environment of the target country and its attractiveness for prospecting and
eventual development and production,
understand existing interests in a licence area in order to ensure we can earn-in to existing interests
on terms favourable to our shareholders.
Oil and gas exploration is by its nature speculative and we aim to reduce the risks inherent in the industry by
careful application of funds in individual projects. We do that by:
Reviewing existing exploration data;
Establishing close in-country partnerships for our projects;
Applying the most appropriate cost-effective exploration techniques in order to determine whether
further work, using increasingly expensive exploration techniques, is justified; and
Appreciating the likely realisation routes that will be available to us as the project moves towards
development.
Principle 2: Seek to understand and meet shareholder needs and expectations
The Company is committed to engaging with its shareholders to ensure that its strategy, operational results
and financial performance are clearly understood. We engage with our shareholders via webinars, holding
investor presentations and through our regular reporting on the London Stock Exchange. Presentations are
typically timed to follow the release of significant operational information and where approptiate interim and
final results. LSE announcements include details of the website, and include phone numbers to contact the
Company and its professional advisors. The Company has a zero tolerance to the potential dissemination of
Inside Information which restricts the amount of information it can relay specif shareholder enquiries.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
62
Private shareholders
The AGM is the main forum for dialogue with retail shareholders and the Board. The Notice of Meeting is sent
to shareholders at least 21 days before the meeting. All Directors attend the AGM and are available to answer
questions raised by shareholders. For each vote, the number of proxy votes received for, against and withheld
is announced at the meeting. The results of the AGM are announced via the London Stock Exchange. In
addition, the Executive Directors hold webinars and online interviews at which common shareholder queries
are addressed where possible. Investors can contact us via our website or by email .
Retail shareholders also attend investor evenings held by our brokers or other industry bodies and we publicise
our attendance via LSE announcements. In addition, our up to date Corporate presentation is made available
on our website.
Institutional shareholders
The Directors actively seek to build a relationship with institutional shareholders. Shareholder relations are
managed primarily by the Executive Chairman. The Executive Chairman makes presentations to institutional
shareholders and analysts during the year, mainly in London, though also virtually. We also have ad-hoc
meetings with our shareholders via conference call and email. The Board as a whole is kept informed of the
views and concerns of major shareholders by the Executive Chairman. Any significant investment reports from
analysts are also circulated to the Board. The Non-Executive Directors are available to talk with major
shareholders if required to discuss issues of importance to them and are considered to be Independent from
the executive management of the Company.
Principle 3: Take into account wider stakeholder and social responsibilities and their implications for long term
success.
Aside from our shareholders, our most important stakeholder groups are our personnel and local partners and
those local communities that may be impacted by our exploration activities. The Board is regularly updated on
stakeholder issues and their potential impact on our business to enable the Board to understand and consider
these issues in decision-making. The Board understands that maintaining the support of all its stakeholders is
paramount for the long-term success of the Company.
Personnel
The Group does not have permanent staff in Jersey, Channel Islands. All staff are recruited under consultancy
agreements as service providers. We aim to provide an environment which will attract the best, retain and
motivate our team and we monitor the effectiveness by regular one-on-one discussion. Our goal is to treat all
staff fairly and equally and to promote ethical behaviour, diversity and non-discrimination.
Local partners and communities
Our operations often provide employment in remote areas of developing countries. Essential to our success is
the establishment of close working relationships with local partners. We seek local partners who have a good
understanding of the local exploration and oil and gas exploration industry and regulations within their country,
and with the capacity and capability to assist with the management and maintenance of the project.
We are mindful of our obligations to the local environment and operate to high levels of health and safety in
respect of both our local workers and the local community. Staff training focuses on operating safety.
Engagement with local communities is dependent on jurisdiction and the stage of exploration but is typically
by public forum or with local or regional leaders, including site visits and workshops. Social projects in the local
communities are dependent on local need and also the stage of exploration/level of project investment.
As projects move forward, towards potential production activities, we seek to bring in partners who can
credibly make the investments to move towards development and production. In doing so we have regard for
their ability and desire to move projects forward, their industry reputation and their commitment to treating
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
63
the local communities fairly and protecting the environment. We enter agreements that allow us to monitor
their activities and have monthly updates on project progress.
Principle 4: Embed effective risk management, considering both opportunities and threats, throughout the
organisation
Audit, risk and internal control
Financial controls
The Company has an established framework of internal financial controls, the effectiveness of which is regularly
reviewed by the Executive Management, the Audit Committee and the Board. The key financial controls are:
The Board is responsible for reviewing and approving overall company strategy, approving new
exploration projects and budgets, and for determining the financial structure of the Company including
treasury, tax and dividend policy. Regular results and variances from plans and forecasts are reported to
the Board;
The Audit Committee, comprising the two Non-executive Directors, assists the Board in discharging its
duties regarding the financial statements, accounting policies and the maintenance of proper internal
business, and operational and financial controls;
Regular budgeting and forecasting is performed to monitor the Company’s ongoing cash requirements
and cash flow forecasts are circulated to the Board on a monthly basis;
Actual results are reported against budget and prior year and are circulated to the Board;
The Company has an investment appraisal system that considers expected costs against a range of
potential outcomes arising from the exploration opportunities that we are invited to participate in;
Regular reviews of exploration results are performed as the basis for decisions regarding future
expenditure commitment;
Due to the international nature of the business there are, at times, significant foreign exchange rate
movement exposures. Cash flow forecasting is done at the ‘required currency’ level and foreign currency
balances are maintained to meet expected requirements; and
For exploration projects, we manage the risk of failure to find economic deposits by low cost early stage
exploration techniques, with detailed analysis of results. Moving projects to more expensive exploration
techniques requires a rigorous review of results data prior to deciding whether to proceed with further
work.
Non-financial controls
The Board has ultimate responsibility for the Group’s system of internal control and for reviewing its
effectiveness. However, any such system of internal control can provide only reasonable, but not absolute,
assurance against material misstatement or loss. The Board considers that the internal controls in place are
appropriate for the size, complexity and risk profile of the Group. The principal elements of the Group’s internal
control system include:
Close management of the day-to-day activities of the Group by the Executive Directors;
An organisational structure with defined levels of responsibility, which promotes entrepreneurial
decision-making and rapid implementation whilst minimising risks; and
Central control over key areas such as capital expenditure authorisation and banking facilities.
The Group reviews at least annually the effectiveness of its system of internal control, whilst also having regard
to its size and the resources available. As part of the Group’s plans we continue to review a number of non-
financial controls covering areas such as regulatory compliance, business integrity, health and safety, and
corporate social responsibility. All personnel are aware of their obligations under anti-bribery and corruption
legislation.
Principle 5: Maintaining the Board as a well-functioning, balanced team led by the Chair
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
64
During the year under review the Board comprised the Executive Chairman, one Executive Director and two
non-executive Directors. Casting vote is held by the non-executive Directors. During the year, there were 15
meetings, of which Paul Griffiths attended 14 (93%), Lonny Baumgardner attended 15 (100%). From the dates
of their appointments, Alistair Jury attended 9 (75%) and Carl Kindinger attended 2 (50%). Both non-executive
Directors have extensive experience in the oil and gas industry and are qualified accountants. Both have
considerable experience of serving on the Board of public companies and are expected to commit 3 days per
month to the Group.
During the year Mr. Alistair Jury replaced Dr. Stephen Staley as non-executive Director. Mr. Thomas Evans was
appointed as a non-executive director to replace Mr. Louis Castro and he himself was replaced by Mr. Carl
Kindinger.
The Board is satisfied that it has a suitable balance between independence on the one hand, and knowledge
of the Company and industry on the other, to enable it to discharge its duties and responsibilities effectively.
All Directors are encouraged to use their independent judgement and to challenge all matters, whether
strategic or operational.
The Board aim to meet at least monthly either formally or through a Board Call. The agenda is set by the
Company Secretary in consultation with the Chairman and Managing Director. The standard agenda points
include:
Review of previous meeting minutes and actions arising therefrom;
A report by the Managing Director covering all operational matters;
Any update to the Register of Conflicts
Updateing the Insider Register and
Any other business.
Directors’ conflict of interest
The Company has effective procedures in place to monitor and deal with conflicts of interest. The Board is
aware of the other commitments and interests of its Directors, and changes to these commitments and
interests are reported to and, where appropriate, agreed with the rest of the Board. A Register of Conflicts is
maintained and is a standard agenda item at each Board Meeting. The Board has access to the Company’s
advisers, including its brokers and its lawyers. The advisers do not typically provide materials for Board
meetings except if requested to do so for the purposes of discussing upcoming regulations and other issues.
Board meetings are deemed quorate if two Board members are present and providing 7 days’ notice of such
meeting has been given and waived by the non-attending Directors.
Directors and Officers Liability insurance is maintained for all Directors and key staff members.
Principle 6: Ensure that between them the Directors have the necessary up-to-date experience, skills and
capabilities
The Board is satisfied that, between the Directors, it has an effective and appropriate balance of skills and
experience, particularly so in the area of oil and gas exploration and evaluation as per each of the Directors
bios shown on pages 58 to 60. All Directors receive regular and timely information on the Group’s operational
and financial performance. Relevant information is circulated to the Directors in advance of meetings by the
Company Secretary. Contracts are available for inspection at the Company’s registered office and at the Annual
General Meeting (“AGM”).
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
65
Directors are selected having regard to the Company’s needs for a balance of operational, industry, legal and
financial skills. Experience of the Oil and Gas exploration industry is important but not critical, as is experience
of running a public company.
All Directors retire by rotation at regular intervals in accordance with the Company’s Articles of Association.
The Board makes decisions regarding the appointment and removal and re-election of Directors, and there is
a formal, rigorous and transparent procedure for appointments. The Company’s Articles of Association require
that at every AGM any director (i) who has been appointed by the board since the last AGM or (ii) who held
office since the first of the three previous AGMs and who did not retire at either of them or (iii) who has been
selected by the board for re-election shall retire from office and may offer himself for re-appointment by the
members.
Independent advice
All Directors are able to take independent professional advice in the furtherance of their duties, if necessary,
at the Company’s expense from lawyers, brokers and other professional advisors that they deem relevant. In
addition, the Directors have direct access to the advice and services of the Company Secretary.
Principle 7: Evaluate Board performance based on clear and relevant objectives, seeking continuous
improvement
In each 12 month reporting period we intend to review the performance of the team as a unit to ensure that
the members of the Board collectively function in an efficient and productive manner. Over the same period
the Non-Executive Directors will be seeking to set clear and relevant objectives for the Executive Directors, and
for the Board as a whole. For further information on Directors, please refer to the Directors’ Remuneration
report on pages 68 to 73.
Principle 8: Promote a culture that is based on ethical values and behaviour
The Board aims to lead by example and do what is in the best interests of the Company, its stakeholders and
the environment. This is enacted through on-site meetings in the countries we do business in where all
contractors and service personnel and consultants are reminded of their responsibilities to adhere to the strict
guidelines laid down in our executed contracts and environmental assessments and approvals. We operate in
remote and under-developed areas and ensure that our staff understand their obligations towards the
environment and in respect of anti-bribery and corruption.
Principle 9: Maintain governance structures and processes that are fit for purpose and support good decision-
making by the Board
Board programme
The Board aims to meet monthly and as and when required. The Board sets direction for the Company through
a formal schedule of matters reserved for its decision. During the year to 31
st
December 2022 the Board met
15 times. The Board and its Committees receive appropriate and timely information prior to each meeting; a
formal agenda is produced for each meeting and Board and Committee papers are distributed by the Company
Secretary several days before meetings take place. Any Director may challenge Company proposals and
decisions are taken democratically after discussion. Any Director who feels that any concern remains
unresolved after discussion may ask for that concern to be noted in the minutes of the meeting, which are then
circulated to all Directors. Any specific actions arising from such meetings are agreed by the Board or relevant
Committee and are then followed up by the Company’s management.
Roles of the Board, Chairman and Managing.
The Board is responsible for the long-term success of the Company. There is a formal schedule of matters
reserved to the Board. It is responsible for overall Group strategy, approval of exploration projects, approval of
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
66
the annual and interim results, annual budgets, dividend policy and Board structure. It monitors the exposure
to key business risks. There is a clear division of responsibility at the head of the Company. The Chairman is
responsible for running the business of the Board and for ensuring appropriate strategic focus and direction.
The Managing Director (“MD”) is responsible for proposing the operational focus to the Board, implementing
it once it has been approved and overseeing the management of the operations. The Executive Chairman is
responsible for establishing and enforcing systems and controls, liaison with external advisors and
communicating with shareholders.
All Directors receive regular and timely information on the Group’s operational and financial performance.
Relevant information is circulated to the Directors in advance of meetings. The business reports regularly on
its headline performance against its agreed budget; the Board reviews these updates and any significant
variances at each board meeting.
Board committees
The Board is supported by the Audit and Remuneration committees. Each committee has access to such
resources, information and advice as it deems necessary, at the cost of the Company, to enable the committee
to discharge its duties. The two committees comprise both of the Non-Executive Directors.
The Audit Committee provides a formal review of the effectiveness of the internal control systems, the Group’s
financial reports and results announcements and the external audit process. The Committee meets twice per
year to review the published financial information and to meet with the Auditors.
The Remuneration Committee provides a formal and transparent review of the remuneration of the Executive
Directors and senior personnel and makes recommendations to the Board on individual remuneration
packages. The Committee met twice during the year.
The Audit Committee meets when required to consider the Company’s financial risks and mitigating actions
(including financial controls), review audit plans and completion reports prepared by its auditor, and to review
financial statements and recommend them for approval by the Board. This includes the appropriateness of the
underlying accounting judgements, going concern and asset impairment considerations. The Audit Committee
met twice during the year.
Principle 10: Communicate how the Company is governed and is performing by maintaining a dialogue with
shareholders and other relevant stakeholders
The Company communicates with shareholders through the Annual Report and Accounts, full-year and half-
year results announcements, the Annual General Meeting (AGM) and one-to-one meetings with large existing
or potential new shareholders. The Company regularly posts LSE announcements covering operational and
corporate matters, such as drilling results and significant changes in ownership positions across historic projects
in which it still retains an investment. A range of corporate information (including all Company announcements
and a corporate presentation) is also available to shareholders, investors and the public on the Company’s
corporate website.
The Board receives regular updates on the views of shareholders through briefings and reports from Investor
Relations, the Executive Chairman and the Company’s brokers. The Company communicates with institutional
investors through briefings with management. In addition, analysts’ notes and brokers’ briefings are reviewed
to achieve a wide understanding of investors’ views.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
67
The Company is aware of the new disclosure requirement with regards to the Task Force on Climate Related
Financial Disclosures, however, the Directors have chosen to disclose information relating to this requirement
on next year’s financial statements. Information relating to ESG and suistanability has been disclosed
throughout these financial statements.
Paul Griffiths
Executive Chairman
27 April 2023
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
68
Directors’ Remuneration Report
The Company’s Remuneration Committee at 31 December 2022 comprised two Non-Executive Directors:
Alistair Jury and Carl Kindinger.
The Company’s Remuneration Committee operates within the terms of reference approved by the Board.
The Committee met twice during the year. In September 2022 the Committee met to consider the current
remuneration arrangements of the Executive Directors, Paul Griffiths, and Lonny Baumgardner as set out
below under Director Service Contracts. In November 2022, the Committee met to consider the possible grant
of options to the Executive Directors and the newly appointed Non-Executive Director, Carl Kindinger, more
details of which are set out below under the Share Option Scheme.
The items included in this report are unaudited unless otherwise stated.
Committee’s main responsibilities
The Remuneration Committee considers the remuneration policy, personnel engagement terms and
remuneration of the Executive Directors and senior management;
The Remuneration Committee’s role is advisory in nature, and it makes recommendations to the Board
on the overall remuneration packages for Executive Directors and senior management in order to
attract, retain and motivate high quality executives capable of achieving the Company’s objectives;
The Remuneration Committee also reviews proposals for any share option plans and other incentive
plans, makes recommendations for the grant of awards under such plans as well as approving the terms
of any performance-related pay schemes;
The Board’s policy is to remunerate the Company’s executives fairly and in such a manner as to facilitate
the recruitment, retention and motivation of suitably qualified personnel as service providers; and
The Remuneration Committee, when considering the remuneration packages of the Company’s
executives, will review the policies of comparable companies in the industry.
Consideration of shareholder views
The Remuneration Committee considers shareholder feedback received and guidance from shareholder
bodies. This feedback, plus any additional feedback received from time to time, is considered as part of the
Company’s periodic reviews of its policy on remuneration.
Statement of policy on Directors’ remuneration
The Company’s policy is to maintain levels of remuneration so as to attract, motivate, and retain Directors and
Senior Executives of the highest calibre who can contribute their experience to deliver industry leading
performance with the Company’s operations. Currently Director’s remuneration is not subject to specific
performance targets.
The Remuneration Committee considers remuneration policy and the employment terms and remuneration
of the Executive Directors and makes recommendations to the Board of Directors on the overall remuneration
packages for the Executive Directors. No Director takes part in any decision directly affecting their own
remuneration.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
69
There was no vote taken during the last general meeting with regard to the Director’s remuneration policy.
This is considered reasonable given the current size and stage of development of the Company and the fact
that remuneration is not currently linked to performance. This will be revisited in future periods once a
meaningful remuneration policy has been implemented as noted above.
Directors’ remuneration
The Directors who held office at 31 December 2022 and who had beneficial interests in the ordinary shares of
the Company are summarised as follows:
Name of Director Position
Carl Kindinger Non-Executive Director (appointed 24 October 2022)
Alistair Jury Non-Executive Director (Appointed 12 May 2022)
Paul Griffiths Executive Chairman
Lonny Baumgardner Managing Director
The interests in the shares of the Company of the Directors who served during the year were as follows:
31 December 2022 At the date of this report
Ordinary Shares Share Options Ordinary Shares Share Options
Paul Griffiths 40,085,808 15,355,486
17,896,228* 15,355,486
Lonny Baumgardner 555,600 15,355,486 555,600 15,355,486
Louis Castro
1
- 2,000,000
- 2,000,000
Dr Stephen Staley
2
- 1,650,000
- 1,650,000
Tom Evans
3
- 2,000,000
- 2,000,000
Alistair Jury
4
- 2,000,000
- 2,000,000
Carl Kindinger
5
1,370,577 2,000,000
1,370,577 2,000,000
Total 42,011,985
40,360,972 19,822,405 40,360,972
1. Louis Castro resigned on 31 May 2022
2. Dr Stephen Staley resigned on 8 March 2022
3. Tom Evans was appointed on 12 May 2022 and resigned on 24 October 2022
4. Alistair Jury was appointed on 12 May 2022
5. Carl Kindinger was appointed on 24 October 2022
* The movement between 31 December 2022 and the date of this report relates to the shares lent by Paul
Griffiths in respect to the placing on 3 April 2023, as detailed in note 24.
Share Option Scheme
The following Directors have been granted rights under the Group’s Share Option Scheme:
In issue at
31 December
2021*
2022
Options
Awarded
Exercised during
year
In issue at
31 December
2022
Vesting
Periods See
notes 19
and 24
Paul Griffiths 7,855,486
15,355,486
(7,855,486) 15,355,486
Lonny Baumgardner -
23,210,972 (7,855,486) 15,355,486
Louis Castro
1,650,000
1,000,000 (650,000) 2,000,000
Steve Staley 2,651,370 - (1,001,370) 1,650,000
Tom Evans - 2,000,000 - 2,000,000
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
70
Alistair Jury - 2,000,000 - 2,000,000
Carl Kindinger
-
2,000,000 - 2,000,000
*Grant dates were 18 May 2018 and 27 October 2020.
In November 2022, the Committee met to consider and recommend the possible grant of options to the
Executive Directors and the newly appointed Non-Executive Director, Carl Kindinger. It was noted that Lonny
Baumgardner had been instrumental in delivering a drilling programme in Morocco with strict cost control
while being presented with significant logistical and supply chain constraints. Paul Griffiths had delivered
oversight of the company strategy and focused on areas that were likely to provide greatest benefit to
shareholders in the long term.
Details of the Directors service agreements are set out below.
Directors’ service contracts
Louis Castro was appointed as a Non-Executive Director of the Company on 14 July 2020 when he entered into
a letter of appointment with the Company. Pursuant to his letter of appointment Louis Castro is entitled to an
annual fee of GBP30,000 which includes consideration for being a member of the Remuneration Committee
and for being a member of the Audit Committee. Louis Castro was subsequently appointed to the Board of
Mag Mell Energy Ireland Limited (formerly named Predator LNG Ireland Ltd), (“Mag Mell”) as a non-executive
director, and his annual fee was increased to GBP40,000. Upon his resignation in May 2022 a payment of
GBP10,000 was made representing the contractual three months’ notice period.
Paul Griffiths provides his services as Executive Chairman under a consultancy agreement with the Company.
The consultancy agreement with Petro-Celtex Consultancy Limited (“Petro-Celtex”) provides for the
services of Paul Griffiths as Executive Chairman of the Company, on a part-time basis.
Up to August 2022, the consultancy agreement entitled Petro-Celtex to a fixed base fee of GBP115,000 per
annum and a technical services consultancy fee of GBP150 per hour. This rate had not been reviewed since
September 2020. The Remuneration committee met in September 2022 to consider whether these rates
were still appropriate. In view of the contribution made by Paul Griffiths to the ongoing success of the
company and considering remuneration plans in similar organisations, it was decided to increase the fixed
base fee by 20% to GBP138,000 per annum and the technical services consultancy fee by 25% to GBP188 per
hour from September 2022.
This consultancy agreement is subject to termination by either party on six months’ written notice. In
addition, the Company may forthwith terminate Paul Griffiths’ appointment as a director of the Company
for, inter alia, a material breach by Petro-Celtex of its obligations under the consultancy agreement referred
to above and Paul Griffiths
may terminate such appointment for a material breach by the Company of its
obligations under
the consultancy agreement referred to above.
Paul Griffiths also has an Advisory Agreement dated 1 September 2020 with a subsidiary, Mag Mell Energy
Ireland Limited (formerly named Predator LNG Ireland Ltd), a company set up to explore opportunities in
Ireland, and in particular the feasibility of developing an offshore LNG import facility for Ireland. Under the
terms of an Advisory Agreement dated 1 September 2020, Paul Griffiths is entitled to a fixed Advisory Fee of
GBP40,000 per annum and a technical services consultancy fee of GBP188 per hour.
Under an Exclusivity and Referral Agreement between Mag Mell and Hamilton Fox Holdings Ltd. (“HFHL”), a
company incorporated jointly by Paul Griffiths and Ronald Pilbeam, a previous Director, to hold performance
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
71
incentives under the aforementioned agreement dated 2 September 2020, HFHL has an entitlement to
performance incentives comprising up to a maximum of 20% of the issued share capital of Mag Mell split into
four separate tranches each of 5%. Performance Conditions for allotment of each tranche of 5% are defined
as the signing of Collaboration Agreement in each case between Mag Mell and bona fide international entities
in the downstream LNG and gas infrastructure and distribution business. Allotment of the final 5% tranche is
conditional on a Financial Investment Decision (“FID”) being made in respect of developing an LNG import
facility for Ireland.
Lonny Baumgardner, was appointed on 12
th
July 2021, and provides his services as Managing Director under a
consultancy agreement with the Company. The Company entered into a consultancy agreement with
Touchpoint Energy S.L, (“Touchpoint”). under which Touchpoint provides the services of Lonny Baumgardner
as Managing Director of the Company. Up to August 2022, the consultancy agreement entitled Touchpoint to
a fixed base fee of GBP115,000 per annum and a technical services consultancy fee of GBP150 per hour. This
rate had not been reviewed since September 2020. The Remuneration committee met in September 2022 to
consider whether these rates were still appropriate. In view of the contribution made by Lonny Baumgardner
to the ongoing success of the company and considering remuneration plans in similar organisations, it was
decided to increase the fixed base fee by 20% to GBP138,000 per annum and the technical services
consultancy fee by 25% to GBP188 per hour from September 2022. The engagement of Touchpoint is subject
to termination by either party on six months’ written notice.
Alistair Jury and Tom Evans were appointed as Non-Executive Directors of the Company on 12 May 2022 and
entered into a letter of appointment with the Company. Pursuant to this letter of appointment Alistair Jury
and Tom Evans are entitled to an annual fee of GBP40,000 which includes consideration for being a member
of the Remuneration Committee and for being a member of the Audit Committee. Tom Evans resigned on
24 October 2022, and an amount of GBP10,000 was paid in lieu of notice.
Carl Kindinger was appointed as a Non-Executive Director of the Company on 24 October 2022 when he
entered into a letter of appointment with the Company. Pursuant to his letter of appointment Carl Kindinger
is entitled to an annual fee of GBP40,000 which includes consideration for being a member of the
Remuneration Committee and for being a member of the Audit Committee.
Remuneration components
For the year ended 31 December 2022 consultancy fees and a share incentive scheme were the only two
components of remuneration. The Company established a share option scheme that became effective on 24
May 2018
for a long-term incentive plan for the award of share options.
The Board is not planning to consider any other components of director remuneration during the year under
review.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
72
Directors’ interests in share warrants
Directors do not hold any share warrants over ordinary shares.
The Committee considers that the current remuneration of Executive Directors to be consistent with pay and
appointment benefits across the Group.
UK 10-year performance graph
The directors have considered the requirement for a UK 10-year performance graph comparing the Group’s
Total Shareholder Return with that of a comparable indicator. The directors do not currently consider that
including the graph will be meaningful because the Company has only been listed since May 2018, is not paying
dividends and is currently incurring losses as it gains scale. The directors therefore do not consider the inclusion
of this graph to be useful to shareholders at the current time. The directors will review the inclusion of this
table for future reports.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
73
UK 10-year CEO table and UK percentage change table
The directors have considered the requirement for a UK 10-year CEO table and UK percentage change table.
The directors do not currently consider that including these tables would be meaningful because, as described
under the Directors’ Service Contracts section above directors have been engaged in the Company only since
May 2018. The directors will review the inclusion of this table for future reports.
Relative importance of spend on pay
The Directors have considered the requirement to present information on the relative importance of spend
on pay compared to shareholder dividends paid. Given that the Company does not currently pay dividends the
directors have not considered it necessary to include such information.
Policy for new appointments
Base salary levels will take into account market data for the relevant role, internal relativities, the individual’s
experience and their current base salary. Where an individual is recruited at below market norms, they may
be re-aligned over time (e.g. two to three years), subject to performance in the role. Benefits will generally be
in accordance with the approved policy.
For external and internal appointments, the Committee may agree that the Company will meet certain
relocation and/or incidental expenses as appropriate.
Policy on payment for loss of office
Payment for loss of office would be determined by the Remuneration Committee, taking into account
contractual obligations.
Approved by the Board on 27 April 2023.
Alistair Jury
Member of the Remuneration Committee
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
74
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF PREDATOR OIL & GAS HOLDINGS
PLC
Opinion
We have audited the Group financial statements of Predator Oil & Gas Holdings Plc (the ‘Group’) for the year
ended 31 December 2022 which comprise the Consolidated Statement of Comprehensive Income, the
Consolidated Statement of Financial Position, the Consolidated Statement of Changes in Equity, the Consolidated
Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The
financial reporting framework that has been applied in their preparation is applicable law and International
Financial Reporting Standards (IFRSs) as adopted by the European Union.
In our opinion, the Group financial statements:
• give a true and fair view of the state of the Group’s affairs as at 31 December 2022 and of its loss for
the year then ended;
• have been properly prepared in accordance with IFRSs as adopted by the European Union; and
• have been properly prepared in accordance with the requirements of the Companies (Jersey) Law 1991.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable
law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the
audit of the financial statements section of our report. We are independent of the Group in accordance with the
ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s
Ethical Standard as applied to listed public interest entities, and we have fulfilled our other ethical responsibilities
in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Material uncertainty related to going concern
We draw your attention to the statement of accounting policies within the notes to the financial statements,
under the heading ‘Basis of preparation and going concern assessment’. Following a recent fund raise of £2.0m
before expenses, the Group has sufficient funds to meet their working needs and to progress their project in line
with budgeted spend.
Management have acknowledged that they will need to raise further funds in order to complete the acquisition
of T-Rex Trinidad Limited which is expected to be completed in 2023. The directors are in negotiations with their
investors and corporate advisors and are confident that the additional funding will be in place. These events or
conditions indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to
continue as a going concern. Our opinion is not modified in respect of this matter.
In auditing the financial statements, we have concluded that the director’s use of the going concern basis of
accounting in the preparation of the financial statements is appropriate. Our evaluation of the directors’
assessment of the Group’s ability to continue to adopt the going concern basis of accounting included:
• reviewing the cashflow forecast and budgets for the period to 30 September 2024 and the
corresponding assumptions used. This included the expected cash receipt in relation to the post year end share
placing in March 2023;
• reviewing the settlement agreement with Challenger Energy with regard to the payments to be made
for the acquisition of T-Rex Trinidad Limited;
• discussions with management regarding the future plans of the Group; and
• challenging management’s assumptions of forecast income and committed costs.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the
relevant sections of this report.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
75
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF PREDATOR OIL & GAS HOLDINGS
PLC (continued)
Our application of materiality
The scope of our audit was influenced by our application of materiality. The quantitative and qualitative
thresholds for materiality determine the scope of our audit and the nature, timing and extent of our audit
procedures.
The materiality applied to the Group financial statements was set at £187,000 (2021: £25,000). Performance
materiality was set at £130,000 (2021: £20,000), being 70% of materiality for the financial statements as a whole.
Materiality has been calculated as 2% of net assets, which we have determined, in our professional judgement,
to be the principal benchmark relevant to members of the Group in assessing financial performance. As the
Group has yet to begin trading, the key focus of the Group is on exploration activities to advance the
development of its investments.
We agreed that we would report to the audit committee all misstatements we identified through our audit with
a value in excess of £9,300, in addition to other audit misstatements below that threshold that we believe
warrant reporting on qualitative grounds.
Our approach to the audit
In designing our audit, we determined materiality, as above, and assessed the risks of material misstatement in
the Group financial statements. In particular, we considered the areas involving significant accounting estimates
and judgement by the directors and including future events that are inherently uncertain, in particular with
regard to the recoverability of the loan receivable and the capitalisation of exploration costs. We also addressed
the risk of management override of internal controls, including among other matters consideration of whether
there was evidence of bias that represented a risk of material misstatement due to fraud. Procedures were then
performed to address the risks identified and for the most significant assessed risks of material misstatement,
the procedures performed are outlined below in the key audit matters section of this report.
As part of our planning, we assessed all components of the Group for their significance in order to determine
the scope of the work to be performed. Predator Oil & Gas Holdings Plc, Predator Oil & Gas Trinidad Limited and
Predator Gas Ventures Limited were considered to be significant components, given they hold the capitalised
costs and the FRAM loan as described in our Key Audit Matters below. A full scoped audit was therefore
performed to support our audit opinion on the Group financial statements of Predator Oil & Gas Holdings Plc
and was based on Group materiality and an assessment of risk at Group level, with a component materiality
applied to Predator Oil & Gas Holdings Plc, Predator Oil & Gas Trinidad Limited and Predator Gas Ventures
Limited. The component materiality ranged from £13,000 to £177,000. The remaining components of the Group
were subject to analytical review and targeted testing as appropriate as they are not material.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit
of the financial statements of the current period and include the most significant assessed risks of material
misstatement (whether or not due to fraud) we identified, including those which had the greatest effect on: the
overall audit strategy, the allocation of resources in the audit; and directing the efforts of the engagement team.
These matters were addressed in the context of our audit of the financial statements as a whole, and in forming
our opinion thereon, and we do not provide a separate opinion on these matters. In addition to the matter
described in the Material uncertainty related to going concern section we have determined the matters
described below to be the key audit matters to be communicated in our report.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
76
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF PREDATOR OIL & GAS HOLDINGS
PLC (continued)
Key Audit Matter
How the scope of our audit responded to the key
audit matter
Recoverability of the FRAM loans (note 13)
As at the year end, there is a material receivable of
£660k from FRAM Exploration Trinidad Limited
included in the Consolidated Statement of
Financial Position.
Due to lack of payment during the year, the Group
had initiated litigation proceedings to recover this
amount, along with associated project costs. Prior
to year end, a settlement was reached with
Challenger Energy Plc, the ultimate parent of T-Rex
Trinidad limited and FRAM Exploration Trinidad
Limited) whereby the Group will acquire T-Rex
Trinidad Limited and the Cory Moruga licence.
However, this is still subject to consent from the
Trinidadian Ministry of Energy and Energy
Industries ("MEEI") and therefore, in accordance
with IFRS 9 Financial Instruments, the Group must
consider providing for possible future credit losses.
There is a risk that the balance is not recoverable
and is therefore overstated in the financial
statements.
Our work in this area included:
Inspecting the Conditional settlement
agreement and the Binding term sheet
entered into with Challenger Energy Plc for
key terms and conditions;
Recalculation of expected value of the
acquisition with reference to the loan
receivable from FRAM as at the year end;
Obtaining management’s assessment of the
probability of the transaction completing,
challenging/ corroborating the key
underlying assumptions where appropriate;
Reviewing the initial due diligence
documentation to support the value of the
proposed acquisition; and
Ensuring that the accounting policies and
disclosures in the financial statements are in
accordance with applicable accounting
standards.
In forming our opinion on the financial statements,
which is not modified, we draw to the user’s
attention the disclosures within Note 13 and within
the areas of estimates of judgments which states
that the loan is only recoverable from completion of
the acquisition of T-Rex Trinidad Limited. Subsequent
to the year end, the Group has signed the settlement
agreement and completion is now conditional on
consent from the MEEI. The financial statements do
not include adjustments that would result if the
Group is unable to recover the loan due from FRAM.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
77
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF PREDATOR OIL & GAS HOLDINGS
PLC (continued)
Capitalisation and valuation of exploration costs
(note 10)
The Group has material intangible assets of
£5,276k in relation to capitalised exploration costs
as a result of exploration activities in Morocco.
There is a risk that costs have been incorrectly
capitalised in Predator Gas Ventures Ltd when
considering the recognition criteria of IFRS 6
Exploration for and Evaluation of Mineral
Resources. There is also a risk that there are
indicators of impairment as at 31 December 2022
which could result in the intangible assets being
overstated. Management’s assessment of
impairment under IFRS 6 required estimation and
judgement, particularly in early-stage exploration
projects.
Our work in this area included:
Obtaining and reviewing management’s
assessment of the capitalisation and
valuation of the intangible assets as at 31
December 2022, and applying challenge
where appropriate;
Challenging management’s key impairment
considerations, especially in relation to the
unexpected geological formation
encountered at the MOU-2 well and the
delay on exploration work;
Verifying the good standing and ownership
of the intangible assets included licences;
Consideration of whether there are any
indicators of impairment in accordance with
IFRS 6;
A review of budgets and work programmes
for the licence areas;
A review of latest studies, including RNS
announcements and CPR report, to
demonstrate the progress the project has
made over the year;
Substantive testing to vouch to supporting
documentation and assess whether costs
capitalised in the year are in accordance
with IFRS 6;
A review of the licence agreements to
assess whether there are associated capital
commitments with regards to minimum
spend on the licence or annual licence fees;
and
A review of the accounting policies and
related disclosures, in the financial
statements, including capital commitments,
to ensure they are in accordance with IFRS 6
and other applicable accounting standards.
Based on the procedures performed, we consider
management’s judgements and estimates in respect
of the carrying value of their capitalised exploration
costs to be reasonable and the related disclosures
appropriate. We note that the drilling of MOU-2 well
was suspended in January 2023. Management
believes that drilling will be able to be continued and
therefore no impairment has been recognised with
respect to the capitalised costs. However, should no
further drilling be possible, there is risk that the
intangible assets will be subsequently impaired.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
78
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF PREDATOR OIL & GAS HOLDINGS
PLC (continued)
Other information
The other information comprises the information included in the annual report, other than the financial
statements and our auditor’s report thereon. The directors are responsible for the other information contained
within the annual report. Our opinion on the Group financial statements does not cover the other information
and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the financial
statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially
misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to
determine whether this gives rise to a material misstatement in the financial statements themselves. If, based
on the work we have performed, we conclude that there is a material misstatement of this other information,
we are required to report that fact.
We have nothing to report in this regard.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Companies (Jersey) Law
1991 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been
received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the Statement of Directors’ responsibilities, the directors are responsible for the
preparation of the Group financial statements and for being satisfied that they give a true and fair view, and for
such internal control as the directors determine is necessary to enable the preparation of financial statements
that are free from material misstatement, whether due to fraud or error.
In preparing the Group financial statements, the directors are responsible for assessing the Group’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or
have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in
accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures
in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities,
including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is
detailed below:
We obtained an understanding of the Group and the sector in which it operates to identify laws and
regulations that could reasonably be expected to have a direct effect on the financial statements. We
obtained our understanding in this regard through discussions with management, application of
cumulative audit knowledge and experience of the sector.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
79
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF PREDATOR OIL & GAS HOLDINGS
PLC (continued)
We determined the principal laws and regulations relevant to the Group in this regard to be those
arising from Company (Jersey) Law 1991, Disclosure and Transparency Rules, Listing rules, General Data
Protection Regulations (GDPR), Jersey and local tax regulation, local environmental laws and local
mineral extraction regulations.
We designed our audit procedures to ensure the audit team considered whether there were any
indications of non-compliance by the Group with those laws and regulations. These procedures
included, but were not limited to:
o Enquiries of management;
o Review of board minutes;
o Review of legal and professional fees to understand the nature of the costs and the existence
of any non-compliance with laws and regulations;
o Review of RNS publications; and
o Review of accounting ledgers for any unusual journal entries which may indicate non-
compliance.
We also identified the risks of material misstatement of the financial statements due to fraud. We
considered, in addition to the non-rebuttable presumption of a risk of fraud arising from management
override of controls, that the potential for management bias was identified in relation to the carrying
value of the intangible asset and FRAM loan as described in the Key Audit Matters section above. We
addressed this by challenging the assumptions and judgements made by management when auditing
these significant accounting estimates.
As in all of our audits, we addressed the risk of fraud arising from management override of controls by
performing audit procedures which included, but were not limited to: the testing of journals; reviewing
accounting estimates for evidence of bias; and evaluating the business rationale of any significant
transactions that are unusual or outside the normal course of business and review of bank statements
during the period to identify any large and unusual transactions where the business rationale is not
clear.
We obtained sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the consolidated financial statements. We
are responsible for the direction, supervision and performance of the Group audit. We remain solely
responsible for our audit opinion.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including
those leading to a material misstatement in the financial statements or non-compliance with regulation. This
risk increases the more that compliance with a law or regulation is removed from the events and transactions
reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.
The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves
intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial
Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our
auditor’s report.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
80
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF PREDATOR OIL & GAS HOLDINGS
PLC (continued)
Use of our report
This report is made solely to the company’s members, as a body, in accordance with our engagement letter
dated 1 March 2023. Our audit work has been undertaken so that we might state to the company’s members
those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility to anyone, other than the company and the
company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Zahir Khaki (Engagement Partner) 15 Westferry Circus
For and on behalf of PKF Littlejohn LLP Canary Wharf
Recognised Auditor London E14 4HD
27 April 2023
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
81
Consolidated statement of comprehensive income
For the year ended 31 December 2022
01.01.2022 to
31.12.2022
01.01.2021 to
31.12.2021
£
Notes
£
(restated)
Administrative expenses 4 (2 ,545,789 )
(1,517,552 )
Operating loss
(2,545,789 )
(1,517,552 )
Finance Income 3 4,477
Finance expense 5 (17,532 )
(19 )
Loss for the year before taxation
(2,558,844 )
(1,517,571 )
Taxation 6 -
Loss for the year after taxation
(2,558,844 )
(1,517,571 )
Comprehensive income
Total comprehensive loss for the year attributable to the owner of
the parent (2,558,844 )
(1,517,571 )
Earnings per share basic and diluted (pence) 8 (0.792
(0.570
The accompanying accounting policies and notes on pages 85 to 112 form an integral part of these financial
statements.
All items in the above statement derive from continuing operations.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
82
Consolidated statement of financial position
As at 31 December 2022
31.12.2021
31.12.2022 £
Notes
£ (restated)
Non-current assets
Tangible fixed assets 11 3,448
Intangible asset 10 5, 275,720
Current assets
Trade and other receivables 13 1,986,670
Cash and cash equivalents 14 3, 323,161
Total assets
Equity attributable to the owner of the parent
Share capital 17 16,840,165
Reconstruction reserve
Warrants issuance cost 18 (583,825 ) (376,820 )
Share based payments reserve 18 1,379,964
Retained deficit
(10,210,097 ) (8,337,55 1 )
Total equity
Current liabilities
Trade and other payables 15 1,253,252
Total liabilities 1,253,252
Total liabilities and equity 10,588,99 9
The accompanying accounting policies and notes on pages 85 to 112 form an integral part of these financial
statements.
The Company has adopted the exemption under Companies (Jersey) Law 1991 Article 105 (11) not to prepare
separate accounts.
The Group reported a loss after taxation for the year of £2.55 million (2021 (restated): £1.5 million loss).
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
83
Consolidated statement of changes in equity
For the year ended 31 December 2022
Attributable to owner of the parent
Share
Capital
Reconstruction
reserve
Warrants
issuance
cost
reserve
Share
based
payments
reserve
Retained
deficit
Total
£ £ £ £ £ £
Balance at 31 December 2020 6,832,564
(208,887 ) 458,840
(7,054,229 ) 2,825,709
Issue of ordinary share capital 4,585,000
Issue of warrants -
Fair value of share options -
Transaction costs - (411,100 ) -
(411,100 )
Exercised warrants 7,497
(3,028 ) 7,497
Warrants issuance costs -
(170,961 ) -
(170,961 )
Total contributions by and
distributions to owners of the
parent recognised directly in
equity
(411,100 ) (167,933 ) 270,860 (3, 028 ) 4,281,296
Loss for the year -
(1,398,821 ) (1,398,821 )
Total comprehensive income for
the year
(1,398,821 ) (1,398,821 )
Balance at 31 December 2021 as
previously reported
(376,820 ) 729,700
(8,456,078 ) 5,708,184
Impact of prior year adjustment
(Note 26)
Balance at 31 December 2021 (as
restated)
(376,820 ) 611,173
(8,337,551 ) 5,708,184
Issue of ordinary share capital 4,335,000
Issue of warrants -
Fair value of share options -
Transaction costs - (476,781 ) -
(476,781 )
Exercised options 837,851
(728,618 ) 728,618 837,851
Exercised warrants 242,253
(187,127 ) -
Cancelled/expired warrants -
(42,320 ) -
Warrants issuance costs -
(436,452 ) -
(436,452 )
Total contributions by and
distributions to owners of the
parent recognised directly in
equity
(476,781 ) (207,005 ) 768,791 686,298 6,186,40 7
Loss for the year -
(2,558,844 ) (2,558,844 )
Total comprehensive income for
the year
(2,558,844 ) (2,558,844 )
Balance at 31 December 2022 16,840,165
(583,825 ) 1,379,964
(10,210,097 ) 9,335,747
The accompanying accounting policies and notes on pages 85 to 112 form an integral part of these financial
statements.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
84
Consolidated statement of cash flows
For the year ended 31 December 2022
01.01.2022 to
31.12.2022
01.01.2021 to
31.12.2021
£
Notes
£ (restated)
Cash flows from operating activities
Loss for the period before taxation
(2,558,844 ) (1,517,571 )
Adjustments for:
Issue of share options 19 1,234,880 194, 284
Finance expense 5 17, 532
Finance income 3 (4,477 ) -
Fair value of warrants 19 13,204
Depreciation 11 2,436
Foreign exchange 4 (67,840 ) (244,28 2 )
(Increase) in trade and other receivables
(249,412 ) (6,059 )
Increase in trade and other payables
Net cash used in operating activities
(604,288 ) (1,385,378 )
Cash flow from investing activities
Loan advances
(115,881 )
Purchase of computer equipment 11
(2, 629 )
Capitalised costs - Project Guercif - Morocco 10
(2,588,694 )
(2,687,026 )
Net cash used in investing activities
(2,588,694 )
(2,805,536 )
Cash flows from financing activities
Proceeds from issuance of shares, net of issue costs 17
Finance expense paid
(12,206 )
(19 )
Finance income received
Net cash generated from financing activities
Effect of exchange rates on cash
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
The accompanying accounting policies and notes on pages 85 to 112 form an integral part of these financial
statements.
Significant non-cash transactions
During the year there were various significant non-cash transactions relating to share options, warrants issued
during the year and loans to directors for shares lent, which are detailed in notes 15, 17 and 19.
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
85
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
86
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
87
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
88
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
89
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
90
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
91
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
92
Notes to the financial statements
For the year ended 31 December 2022
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
93
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
94
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
95
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
96
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
97
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
98
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
99
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
100
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
101
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
102
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
103
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
104
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
105
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
106
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
107
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
108
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
109
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
110
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
111
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
112
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
113
Corporate information
Directors
Paul Stanard Griffiths (Executive Director – Chairman)
Lonny Baumgardner (Managing Director)
Louis Castro (resigned 31 May 2022)
George Staley (resigned 8 March 2022)
Alistair Jury (appointed 12 May 2022)
Thomas Evans (appointed 12 May 2022
resigned 24 October 2022)
Carl Kindinger (appointed 24 October 2022)
Company Secretary Oak Secretaries (Jersey) Limited
3rd Floor, IFC5
Castle Street
St. Helier
Jersey JE2 3BY
Registered Office 3rd Floor, IFC5
Telephone+44 (0) 1534 834 600
Joint Broker and Placing Agent Novum Securities Limited
Lansdowne House
57 Berkeley Square
London W1J 6ER
Joint Broker and Placing Agent Optiva Securities Limited
118 Piccadilly
London W1J 7NW
Auditors PKF Littlejohn LLP
15 Westferry Circus
Canary Wharf
London E14 4HD
Legal advisers to the Group as to
English law
Charles Russell Speechlys LLP
5 Fleet Place
London EC4M 7RD
Legal advisers to the Group as to Jersey
law
Pinel Advocates
One Library Place
St. Helier
Jersey JE2 3NY
Predator Gas and Oil Holdings Plc
For the year ended 31 December 2022
114
Competent Person SLR Consulting (Ireland) Ltd
7 Dundrum Business Park
Windy Arbour
Dublin 14, D14 N2Y7
Republic of Ireland
Registrar
Computershare Investor Services (Jersey) Limited
Queensway House
13 Castle Street
St. Helier
Jersey JE1 1ES
Financial PR Flagstaff Strategic and Investor Communications
1 King Street
London EC2V 8AU
Principal Bankers Barclays Bank Plc
13 Library Place
St. Helier
Jersey JE4 8NE