Predator signs binding deal for Cory Moruga

Predator Oil & Gas Holdings plc has signed a binding agreement with Challenger Energy Group plc to acquire the Cory Moruga licence, onshore Trinidad.

UNREALISED POTENTIAL

The fully termed long-form legal deal was initiated in December 2022, following a dispute between the companies.

The terms remain unchanged including Predator’s 100% acquisition of the issued share capital of Challenger’s subsidiary T-Rex Trinidad Ltd (T-Rex), which holds 83.8% interest in, and operatorship of, the Cory Moruga licence.

Cory Moruga includes the Snowcap oil discovery, with oil previously produced on test from the Snowcap-1 and Snowcap-2ST wells.

“We are delighted to have had the opportunity to evaluate the Cory Moruga technical database and are extremely upbeat about the opportunity for unrealised potential in Cory Moruga, both for conventional appraisal and production and for the application of our CO₂ EOR* expertise,” added Predator’s executive chairman Paul Griffiths.

“Cory Moruga is a near-virgin field unlike many of Trinidad’s onshore oil fields. As a result it is an excellent candidate for miscible CO₂ EOR projects.

“The CPR [competent person’s report] will be important for independently validating these potential resources.” 

COLLABORATION

Further terms include Challenger’s retention of the option to repurchase 25% of Predator’s share in T-Rex on an agreed basis.

The two companies will collaborate over CO₂ EOR activities and projects in other areas in Trinidad, and agreed a mutual settlement and discharge of all disputes and claims in relation to the Inniss-Trinity field CO₂ EOR pilot project.

Completion of the transaction is conditional on consent of the Trinidadian Ministry of Energy and Energy Industries.

Predator and Challenger aim to secure approval and complete the agreement on or before 30 May 2023, with a long stop date of 31 August 2023.

Extensive data from Challenger and Predator’s more in depth in-house due diligence on Cory Moruga has resulted in revised material for the competent persons report, expected before the necessary approvals.

*enhanced oil recovery