Predator Oil & Gas Holdings completes strategic investment in Bonasse Field

LONDON: Jersey-based Predator Oil & Gas Holdings Plc (PRD) has announced the completion of a strategic investment by T-Rex Resources (Trinidad) Limited (“TRex”), its wholly owned subsidiary, to acquire 51% of the issued share capital of CRL. This investment grants TRex a majority stake in CRL’s sole asset, the Bonasse Field in the SW Peninsular, Trinidad.

CRL holds a 100% interest in and operates the Bonasse Field, which is licensed by the Ministry of Energy and Energy Industries (MEEI) with a production license valid until 2039. No remaining work commitments are required for the field.

The consideration for the strategic investment is US$170,000. With this investment, TRex will take ownership of the Bonasse Field facilities, including oil storage tanks needed for the Cory Moruga workovers and field development. These assets will offset costs for purchasing production facilities required for the Jacobin-1 and Snowcap-1 workovers and the appraisal of the Snowcap oil field, thus removing the need for this expenditure from the company’s working capital.

The investment also brings US$5.3 million in tax losses in CRL and its subsidiaries, which can be consolidated with TRex’s tax losses in the future if warranted.

The Bonasse Field currently has seven wells, recently shut in due to third-party contractual and non-operational reasons. Its structure is similar to the Cory Moruga and Moruga West fields. Legacy analysis indicates a typical drainage area of 4.5 acres per well and a STOIIP volume of 382,500 barrels of 22.8 API oil, with a historical primary recovery factor of just 4.18%.

The low primary recovery factor presents an opportunity for the application of the patented SGN Technology chemical wax treatment, currently being prepared for the Jacobin-1 workover in the company’s Cory Moruga license. This treatment is expected to enhance recovery and oil flow rates, making shallow drilling and chemical wax treatment cost optimization crucial for developing undrained areas of the field.

Paul Griffiths, CEO of Predator, stated, “This transaction is a significant step towards building a robust production portfolio. The application of our patented chemical wax treatment, along with rigorous management of field operating and administrative costs, will maximize profit margins and leverage inherited tax losses. If the new chemical wax treatment proves to be a game changer, further field development by reinvesting production income will be warranted. Growing income in US Dollars will provide protection against the current weakness of the UK currency.”

Predator Oil & Gas Holdings continues to focus on its hydrocarbon operations in Morocco and Trinidad, with this latest investment bolstering its strategic position in the region.

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