Predator Oil & Gas Holdings PLC has released a corporate update, including an Independent Technical Report (ITR) by Scorpion Geoscience Ltd. for the Guercif block and resource potential of the Moulouya Sub-Area. The report highlights unrisked P50 and P10 Contingent recoverable gas resources of 109.28 and 234.42 BCF respectively net to PRD, as well as unrisked P50 and P10 Prospective recoverable gas resources of 139.67 and 312.16 BCF respectively net to PRD.

The ITR also provides scoping potential for Compressed Natural Gas (CNG) development, with an NPV @10% of 128.08 and undiscounted positive cash flow of US$207.504 million net PRD's economic interest, and an IRR of 138%. The report is based on maintaining a 20 mm cfgpd production profile for 6 years to recover 32.85 BCF net PRD at a flat gas price of US$12/mcf. The company is fully funded for all 2024 firm commitments.

The company's proposed 2024 work programme includes rigless well testing and discretionary appraisal and exploration drilling, subject to regulatory consent and approvals, to add potential resources for scalable CNG development funded through organic cash flow. The expected commencement of rigless testing on or about 29 January 2024 will focus on evaluating specific sands within the broader Ma and TGB 2 intervals in MOU-1 and MOU-3.

Depending on the rigless testing results, a scoping CNG gas profile of 20 mm cf/day maintained for 6 years to recover a gross volume of 43.8 BCF may be achievable from 4 production wells. The ITR gives an unrisked scoping NPV@10% of US$108 million and an IRR of 138% with undiscounted positive cash revenues of US$207.504 million for the net Predator economic interest.

The timing of "First Gas" depends on third-party factors including government and environmental consents and approvals, as well as the long lead time for the purchase or leasing of CNG trailers and gas compressors. The ITR also addresses geological risks, potential well formation damage, and the possible origins of the gas sampled to date pre-testing, which will be addressed by the first phase of rigless testing.