Predator Oil & Gas Completes Acquisition of T-Rex Resources and Cory Moruga in Trinidad

Predator Oil & Gas Holdings Plc has completed the acquisition of T-Rex Resources (Trinidad) Limited and an 83.8% interest in the Cory Moruga exploration and production license in Trinidad. The completion of the transaction follows agreements from the Trinidadian Ministry of Energy and Energy Industries. As part of the agreement, Predator has paid $1 million to Challenger Energy Group Plc (CEG) and will pay an additional $1 million to the Ministry of Energy and Energy Industries in settlement of past dues on the Cory Moruga license. A contingent payment of $1 million to CEG based on future production benchmarks will no longer apply.

The initial work program agreed with the Ministry of Energy and Energy Industries includes re-entering the Snowcap-1 well to bring the Herrera #8 Sand back into production, reprocessing the existing 3D seismic on Cory Moruga, and drilling an appraisal/exploration well to test all eight Herrera reservoir intervals. The Snowcap-1 well initially flowed at a rate of 406 barrels of oil per day (bopd) and a re-entry and work-over is planned to restore production to a predicted rate of 100 to 200 bopd. The Snowcap-2ST-1 well will also be surveyed for possible re-entry and testing.

Predator has presented an amended Field Development Plan (FDP) to the Ministry of Energy and Energy Industries, which includes up to 20 development wells to be drilled over three years. The fully developed Cory Moruga field has a long-term production potential of 5,000 to 9,000 bopd. Predator has also proposed a possible miscible CO2 EOR scheme for the field. The timing of the implementation of the FDP will be subject to regulatory approvals.

Predator and the Ministry of Energy and Energy Industries have agreed to work collaboratively to develop and realize new oil production from Cory Moruga. Predator will make a payment of $1 million to the Ministry of Energy and Energy Industries on the completion date, as well as quarterly arrears payments of 7.5% of gross revenue derived from the sale of oil to satisfy historical outstanding financial obligations.