Predator O&G Hldgs (AIM:PRD) Proposed Placing to raise a minimum of £7million

Predator Oil & Gas Holdings plc (LSE: PRD), a Jersey-based Oil and Gas Company with near-term gas operations focussed on Morocco, announces its intention to issue new ordinary shares in the capital of the Company (the “Placing Shares”) to institutional investors at a placing price to be determined following the completion of an accelerated bookbuild process (the “Placing Price”) (the “Placing”).

The Company intends to raise minimum gross proceeds of £7 million through the Placing.

Highlights

·    The net proceeds of the Placing will be used for completion of an extended rigless testing programme for MOU-1, MOU-3 and MOU-4, commencement of CNG development studies and tendering for long lead items, residual MOU-4 well costs and general working capital.

·    The Placing will be conducted by way of an accelerated bookbuild which will be launched immediately following the release of this announcement.

·    In the event of excess demand, the Company reserves the right to increase the size of the Placing in its sole discretion.

Trading update and reasons for the Placing

The Company is involved in the exploration, appraisal and further development of oil and gas assets. The Company operates in Morocco and Ireland and is currently a non-operator in the Republic of Trinidad and Tobago but may become an operator conditional on the approval of the Ministry of Energy and Energy Industries of the Company’s acquisition of TRex Holdings Trinidad Ltd.

The principal near-term activities of the Company are exploration and appraisal drilling for gas onshore Morocco, exploration and appraisal drilling for oil onshore Trinidad and injecting carbon dioxide into existing, and potentially future, wells in Trinidad for enhanced oil recovery and carbon dioxide sequestration.

Through its wholly-owned subsidiary, the Company holds a 75 per cent working interest in and is the operator of the Guercif Petroleum Agreement in Morocco where the Company has recently completed the MOU-3 and MOU-4 wells for rigless testing. The Company will rigless test MOU-1, MOU-3 and MOU-4 to establish gas flow rates. This testing programme will determine whether or not the threshold amount of gas required of one million cubic feet of gas per day (0.35 BCF / year) for a compressed natural gas (“CNG”) development in the short term for a single end user in the Moroccan industrial market has been reached. Upon the results of this testing programme a decision may be taken to initiate the CNG development, which may require further financing.

Subject to the results of the MOU-1, MOU-3 and MOU-4 rigless testing programmes, the potential for CNG growth will be evaluated in the medium term to assess the potential to scale up to 34 million cubic feet of gas per day (approximately 12 BCF/year).

The Company intends to utilise the majority of the Net Placing Proceeds for MOU-4 well costs and rigless well testing of MOU-1 and MOU-3 and MOU-4.

Details of the Placing

The Placing is seeking to raise a minimum of £7m at a minimum price of 11p.  The Placing will be conducted by way of an accelerated bookbuilding process (the “Bookbuild”) which will be launched with immediate effect following this Announcement in accordance with the terms and conditions set out in Appendix I. The Placing Shares are not being made available to the public. It is envisaged that the Bookbuild will close no later than 7.00 a.m. GMT tomorrow, 1 August 2023. Details of the number of Placing Shares, the Placing Price and the approximate gross proceeds of the Placing will be announced as soon as practicable after the closing of the Bookbuild. The Placing is not underwritten.

Fox-Davies Capital Limited (“Fox-Davies”) and Novum Securities Limited (“Novum”) (together Fox-Davies and Novum being the “Joint Brokers”) are acting as joint brokers in respect of the Placing.

To bid in the Bookbuild, Placees should communicate their bid by telephone or in writing to their usual sales contact at Fox-Davies or Novum.

Admission of Placing Shares

Application will be made for the Placing Shares to be admitted to trading on the standard segment of the main market of London Stock Exchange plc (“Admission”). It is expected that Admission will take place at or around 8.00 a.m. (London time) on 15 August 2023 (or such later date as many be agreed between the Company, Novum and Fox-Davies) but in any event not later than 8.00 a.m. on 31 August 2023.  The Company does not currently have the ability under the Prospectus Regulation Rules to apply to the FCA for admission of the Placing Shares. The Company is working with its advisers to obtain approval of a prospectus (the “Prospectus”) which is in the late stages of the vetting process with the FCA.  In the event that the Prospectus is not approved by the FCA by 23 August 2023, the Company will however have sufficient headroom under the Prospectus Regulation Rules to apply for admission of the Placing Shares.  The Placing is conditional upon, inter alia, Admission becoming effective and the placing agreement between the Company, Novum and Fox-Davies (“Placing Agreement”) not having been ‎terminated.‎ The Placing Shares will, when issued, be credited as fully paid and will rank pari passu in all respects with the Company’s existing issued ordinary shares of no par value each (“Ordinary Shares”).

Total Voting Rights

As at today’s date, the Company’s issued share capital consists of 426,403,418 Ordinary Shares. The Company holds no Ordinary Shares in treasury.

Therefore, the total number of voting rights in Predator is 426,403,418, which is the figure which should be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, Predator shares under the FCA’s Disclosure and Transparency Rules.

This announcement should be read in its entirety. In particular, you should read and understand the ‎information provided in the “Important Notices” section of this announcement.‎

Further details of the Placing are set out in Appendix I, below

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