Predator Oil & Gas Holdings (LSE:PRD) — Investor Presentation

0:01 Good afternoon, ladies and gentlemen, and welcome to the PREDATOR OIL and GAS HOLDINGS PLC Investor Presentation. Throughout this presentation, investors will be in listen only mode. Questions are encouraged and can be submitted at any time by the Q and A tab situated on the right hand corner of your screen. Simply type in your question and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company will review all questions submitted today and publish responses where it is appropriate to do so. These will be available via your investment company dashboard, and we'll notify you

0:32 by email when these are ready for your review. I'd also like to remind you that today's presentation is being recorded. Before we begin, I'd like to submit the following poll. And now I'd like to hand you over to Paul Griffiths, CEO, and Louis Castro, NED. Good afternoon to you both. Good afternoon. So welcome to the PREDATOR presentation investor presentation this afternoon. I don't think it's any surprise that our first slide is focused on gas. Over the last few days, everybody has become acutely aware of the energy crisis and the importance of gas in the makeup of that crisis. So we, obviously, are looking to look at gas as a sustainable lower carbon fuel to replace oil, for example, and and more especially coal, and look at ways of disrupting of addressing the disruption of the volatility in the energy market, particularly in Morocco, which is very much dependent on imported fuel oil.

1:38 So the next slide is just a disclaimer, which I'm sure you're all familiar with. And if we move on to the next slide then, obviously, most people know quite a lot me as as chief executive over the years, but Lonnie Baumgartner has joined us from STX the end of July. Now, unfortunately, Lonnie cannot be on this call. At the weekend, he had some news from the family over in Canada, and he had to make an emergency trip back there to support the family. And I'm afraid we thought it was appropriate at this time that he should be not not be on the call. So we wish him well for this week, and he hopefully hopefully, he'll be back in in back in the country in in due course at the end of the week, hopefully.

2:29 But Louis Castro, NED, is on the call. Lottie is aware of some of the questions that have been asked and has provided me with some some pre submitted questions and provided me with some answers. The importance of Lottie to the board is that I think we have now the perfect partnership at company board level. Myself, probably known as a bit of an entrepreneur, a geoscientist who focused on trying to derisk prospects, whereas Lonnie's got a great background in Morocco in developing the gas market, a great background in industry going back thirty two years in operations as you see there. So it's now we've got a very complementary team for Morocco, which is important, I think, to emphasize.

3:21 I like this slide because the next slide. Because in the center of the slide, you see the way the PREDATOR share price has performed since IPO. You can see see the triggers and the catalysts there. You can see the placings there, when they were done, etcetera, the impact of COVID, the impact of the convertible loan earlier in our history. But most importantly, the biggest impact, it's always lead up to drilling, and drilling is is key to to driving share price. Drilling results can be positive. Drilling results could be negative, and drilling results can be noncommittal. You always have to bear that in mind in the lead up to drilling. But on the right, you see how we have performed since IPO relative to a number of other of our peer companies.

4:09 So we're of 17 for September, it's a bit out of date, but the the situation's a little bit better today even. We're 77% up on our IPO price. Because we didn't overvalue the company at IPO, we left lots of running room. Most of our competitors are at least 90% underwater since IPO. So I just emphasize that that not to discredit any of our competitors, but to emphasize that from the start, we set the valuation low so that there was always going to be headroom no matter what happened over the the company over the next two or three years after the IPO. So I think that's worth bearing in mind. Also, I think it's worth bearing in mind what we've raised less than 10,000,000 sterling over three and a half years. So it's not a huge amount given the expansion of our portfolio and what we have to offer shareholders today and in the future.

5:03 The next slide, I like this slide too because it takes advantage, obviously, of the gas crisis. And, clearly, also, you know, what we're seeing at potential winter of discontent is nothing new. But the key thing is that we a lot of people in the industry was talking about the gas store store shortage issue several years ago. But combination of Brexit, the COVID, obviously, and also, in many ways, the demonization of the fossil fuel industry over the last two years has allowed investment in the fossil fuel industry, in particular, gas to become somewhat stymied. And there was was always going to be a massive rebound and resurgence in energy demand after Brexit, pent up development.

5:54 What we see today, for example, in China, coal is now at a very high price, and they're having power shortages, electricity shortages in China. In Ireland, they're burning more coal now than in the last few years at Moneypoint and increasing their c o two emissions. So what's happened? What's happened in this great period of transition to greener energy? It's forced us to use more energy that produces c o two, and that was never the intended concept, never the intended result. So we have to move through a transition process to greener energy, and that will involve gas, and that is no escape from that. So if we look at the next slide, you know, looking at the spotlight on Morocco, which is a classic example of the energy crisis, on a country basis.

6:47 Morocco generates only about 10,000,000,000,000 watts sorry, terawatts of electricity from gas, whereas it generates 78 terawatts from coal. So, obviously, you can see that, the importance of replacing coal in Morocco to reducing c o two emissions is very important. Increasing coal prices that we've seen just very recently is also very damaging to Morocco who import all of their coal. Only 7%, approximately 7% of all primary energy in Morocco comes from a low carbon source. So developing gas has a positive benefit. So our ability to keep our eye on the ball involves discovering gas, finding a way to commercialize that gas and get it to market quickly, and compressed natural gas solution, which Lonnie has been advocating for for several years and others have advocated obviously in Morocco and elsewhere, is the key to supplying a stranded industrial market separated isolated from the gas infrastructure.

7:58 It reduces CO2 emissions, so it has a positive environmental benefit. Importantly, there is a near term profitability element because CNG is relatively simple to develop when you have a high quality gas, methane gas, And it also is obviously the catalyst for self sufficiency in gas supplies, domestic gas supplies, so that you're no longer dependent on perhaps a political rival for importing your gas, whether it be Europe, whether it be Morocco, whether it be anywhere else in the world. And it creates jobs, more jobs than conventional gas developments because of the drivers you employ to ship the gas to the market, the maintenance, the technicians, etcetera.

8:43 And, of course, haulage, as we know, is a very, very important issue at present, underestimated over the last couple of years. But now the lack of investment in haulage is being shown up to be a major issue in getting supplies to market. In Morocco, there are lots and lots and lots of haulage drivers. Okay. So move on. Oh, sorry. Move back a slide. So we're focused on the industrial market in Morocco, and that's no surprise because that offers the highest price for gas. An average price of $11 an Mcf can be achieved. It's also obviously the most lucrative market in terms of gas price and replacing, substituting imported oil, but it's also a market that is not supplied by infrastructure or significant infrastructure gas throughput.

9:41 And that's simply because a lot of the industrial centers, as you see in the blue dots on the map on the top left hand corner, are in isolated areas. To build that volume of infrastructure just to get to gas to market will take years, once you've gone through the permitting and the environmental processes, etcetera. An industry cannot afford to wait years. Want gas today, yesterday. They want to replace imported oil. They want to be dependent on gas. So if you look at the bottom left there, obviously, there's, a lot of interest in what did MOU one achieve. Well, MOU one proved that there was gas generation in the part of the Gursi Basin that hadn't been explored for thirty five years.

10:28 So be a little patient with us. They waited thirty five years to drill a well to prove up a gas basin in Gursif, and we've done it in the last two months. So have some patience. We will achieve everything we want to achieve, but it won't be achieved by one minute midnight tonight. Geology. The geology compares with the Arab Basin. A fundamental difference with the Arab Basin is that there are much bigger reservoirs and prospects here in the area of GASIF that we're targeting for our drilling. And don't take my word for that. You take the word of our team. Lonnie, who has worked for STX for several years in the Raft Basin, and Maurice Scott, who is our drilling manager, who has drilled wells, many wells in the Rab Basin in two different phases.

11:19 They both understand that what we did at MOU one was prove up the Rab Basin and its continuous continuation offshore into the Gursief area through the ConocoPhillips acreage next door to us. First time in thirty five years. I keep saying that because thirty five years, no activity. Two months, we come along, prove up a gas basin. Just bear that in mind. So the cost of drilling. Well, we drilled that well for $3,300,000. It took twelve days. Imagine trying to drill an offshore well as we come on to see later to prove up gas and how many wells you have to do drill to prove up that gas. So if you look at an the sort of onshore development we're looking at, we initially looked at gas to power and pipeline, but then we realized that the cost of getting into the pipeline wasn't so much an engineering cost. It was a time factor.

12:19 Dealing with the pipeline owners, paying tariffs could take months, years to negotiate. Compressed natural gas is completely within our control. We can ship it to the private end users. We don't need to build a pipeline. We don't need extensive permitting. We don't need extensive EIA approvals. So it also is scalable. The problem with a fixed development is that in order to get to finance, you have to set a target level that you're going to produce to repay the finance. With CNG, you can produce 5,000,000 a day. You can produce 10,000,000 a day. You can produce 20,000,000 a day, and it's all scalable. It's not dependent on masses of a fixed infrastructure, high cost expensive infrastructure.

13:06 So reason for drilling MOU four and five in the bottom right there is that, you know, we've been comfortable with a a profitable 5,000,000 cubic feet a day production profile. But to all in order to capture a bigger slice of the industrial market and to bring new customers into that market, we need to drill a couple more wells back to back to get us up to somewhere around 25,000,000,000 cubic feet a day profile. And that's not saying that your well won't produce 30,000,000 a day or 20,000,000 a day or 10,000,000 a day on test. This is a sustainable profile over at least five years. If you don't have a sustainable profile, you won't sell gas. Because if you can't meet your gas commitments in those five years, you will pay a penalty, and that penalty could end up crippling you if you don't manage the situation carefully.

13:59 We're looking at NPV value of $215,000,000 for 25,000,000 cubic feet a day and a rate of return at a 100% because of the low capital costs, the high revenue gross revenue that you get for gas price gas in Morocco, and the low taxation, 5% royalty, ten year holiday, and corporation tax. Okay. Next slide. So where do we sit in terms of scalability versus our competitors? Well, offshore, there's gonna be a well in 2021, 2022. ConocoPhillips are planning 2,000 kilometers of two d seismic in 2022. I don't know when that was will be. I'm guessing 2022.

14:45 And STX have at least two wells planned for q four. So MOU one is the catalyst for step out drilling and CNDG deliveries. First gas is achievable, realistically achievable by h one two thousand and twenty three. Antwera first gas in a CS case is achievable by 2024. Connolly Phillips, who knows? Are they are they looking for gas? Are they looking for oil? They're at least two years behind our exploration curve. And STX are fulfilling, drilling, to to supply existing customers. Without more wells, it's difficult to expand that market successfully over the next twelve months. Scalability. We can move from 25,000,000 a day to 83,000,000 a day if if we add on additional resources by drilling more wells.

15:37 And we can move that up in real terms from 537,000,000 net cash to over 1,700,000,000 billion, sorry, net cash. So it's very easy to scale up when you have a relatively simple development. And on the right there, you see the various, CPR resource cases. All I'm saying is I'm not gonna tell you hand on heart that we'll discover 940 BCF of gas, but the running room in an area of 7,000 plus square kilometers is obvious when your first well proves up a new gas basin. We haven't got history here. We haven't got baggage here. We're pioneering the start of exploration and development in this basin. Thirty five years they waited. We came along two months.

16:25 So next slide. There has been some odd quest not odd. There has been the odd questions submitted on the technical aspects, and I'm always very appreciative of people who ask that question because I'm a geoscientist first and foremost. So the red area is MOU one, the red outline there on the left hand side. MOU one was designed to test a shallow bright spot seismic bright spot that we thought was an isolated sand separated from the main MOU for prospect. And the reason for doing that first was to thought that had the lowest risk of finding gas and proving gas a gas basin.

17:14 So that interval came in within two or three meters of prognosis. It was the seismic bright spot. It was gassy, and there were zones that we thought warranted testing and that we completed the well on that basis for testing. Now many people have asked the question quite rightly. Well, why didn't we announce a gas discovery?

17:37 Frankly, we were constrained by what we could announce. Normally, you know, when a well is drilled and you have to announce the results of a well when your partner is the site company, you have to obviously run the RNS, the announcement through ONI. It's not possible to say everything we want to say, as I say, one minute to midnight after the well, without a pre appraising ONI of our thoughts, having a technical committee meeting, having a management committee meeting, discussing the results of the well, and being aligned in how we present everything going forward. We may not be aligned at the end of those meetings, but we're we're absolute certain as to what we think we want to do.

18:23 So it we could have announced major gas discovery, but it would not have been sensible to have done that because we could not announce a major gas discovery at that time for regulatory purposes and for the purposes of evaluating what we had over several weeks to make sure that we designed the right perforating program for for a well that was difficult because of the heavy mud that with the mud we had to use in the well because we saw significantly more overpressuring in the well than in a lot of the wells in the Raab Basin. And that was because of the gassy nature of the section. The overpressured nature of the section meant that there was a lot of pressure and gas trapped in this interval that obviously impacted the how we managed to drill the well.

19:15 Despite what were very, very difficult challenges, we successfully drilled the well, logged the well, and completed it for testing. Now as you well know, over the last couple of years, many companies have faced severe challenges in difficult high pressure wells or in difficult wells or wells that had been sidetracked. Number one priority for us was to get that well t to d d to d d to to d d within budget safely and complete it for testing. I come back and evaluated it later when we had analyzed all the information that we wanted to analyze to ensure that we tested the right interval and and that we would have the right optimum chance of flowing gas at the best possible rates.

20:03 So next, well, MOU four in the orange area, is designed to look at the main MOU four fan. Now what I neglected to say that the MOU one well, and that's my fault, actually found the edge of the MOU sand. What we thought was an isolated sand with a seismic bright spot turned out to be the MOU four turbidite fan, the very edge of it, the north the western edge of it, which extends over 30 square kilometers to the east. So perhaps you can see why we got excited after our evaluation about where we want to go next. If you drill the edge of a 30 square kilometer area of bright spots that you've proved up in your first well, then sure as hell, you wanna go after wells number four and five. And the reason for moving quickly is because gas is a valuable asset, even more valuable than it was two or three weeks ago.

21:09 We need to move to production as fast as possible, and as safely as possible as well. So MOU four will prove up the case for a 25,000,000 a day profile. MOU five then proves up the maximum case, proves the communication within the entire thirty thirty four square kilometer fan and allows us then to look at a 100,000,000 cubic feet a day profile. So very important to understand why we want to you move to MOU four and MOU five quickly. So m o u one proved up four square kilometers. M o u four and five well, four is proving up 12 square kilometers and five thirty square kilometers. That's the way to look at it.

21:59 And moving on to the next slide. So here's just an analysis of first pass analysis of the MOU one well. And on the left hand side, you see lots of nice colors and and chromatograph charts. Charts. And the main thing to learn there is that there were gas gas readings all the way down the well, including formation gas shows. The upper part of the well was dry gas, and the lower part of the well was wet thermogenic gas. So proves that there's a gas generation in the basin and significant gas generation, throughout the section. The next, graph over shows the resistivity in the wells. This is a low resistivity gas pay, which means that because we're at the edge of the fan, the very thin reservoir intervals tend to be difficult to spot when you first look at the resistivity log. There are six zones that warrant testing, six immediate zones that warrant testing with the same resistivities, low resistivities, as the land one well in the Raft Basin, the Circle Oil in 2015.

23:10 In that well, one thin interval of one meter flowed at a stabilized rate of 1,900,000 cubic feet of gas per day on a sixteen and sixteen four 40 inch choke. So we know this interval can deliver gas, and we know where sands are developed, they can deliver at high rates. So testing the interval is important to establish whether we can flow, say, 5,000,000 a day from it to support initial compressed natural gas development. But one well will never achieve a development because if you commit to supplying gas on the basis of one well, then you're an idiot. Because if there's any maintenance problem with that well, which often happens, you're not supplying gas and you're paying a penalty.

23:59 So that's why we have to drill wells two and three to give us maximum ability to have at least two production wells for for gas sales, a minimum gas sales of 5,000,000 a day, hopefully trying to scale it up to 25 and eventually a 100,000,000 a day, which will be much more difficult to to get into the immediate market at that sort of level. So c just checking the time. I'll rush through this a little bit more quickly to allow questions. So checking the CNG development here. So we did a CNG cost study early in the year. And on the right there, you can see that in the blue box all the elements of the CNG development. So I won't run through those. You can read those at your leisure.

24:44 But the two kind of key factors, one is that the MOU 4 site is only one and a half kilometers from from the the highway that links westwards to Morocco's industrial centers. And the other factor there is that it only needs $17,000,000 CapEx to get to first gas, and that includes the cost of drilling two wells sorry, the cost of drilling one well. Moving on to the next slide. This shows the running room. So we had several other prospects, MAU two, three, seven, and eight, for example. And then on the right, a new prospect that we've developed over the last three or four months called MAU Northeast, which is the Jurassic prospect, which covers, this carbonate bank that covers an area of about a 105 square kilometers.

25:35 But within that area, there are probably sweet spots, for for for drilling. And you can think of it as, a kind of limestone reservoir equivalent to the Zelton reservoirs of of Libya, the prolific Paleocene Zelton reservoirs. They're just carbonates that sit on the top of a basement high. This is potentially charged from the west with gas and also possibly from east offset well drilled over thirty five years ago that had gas shows and a reservoir within the development within this particular interval. So we can drill this well to about 1,200 meters. It's It's a a nice nice add on. It's 15 kilometers northeast of or east of MOU 4.

26:21 Okay. Next slide, Trinidad. So the positives, c o c o two injection resumed in April to July. We injected 489 metric tons. We maintained c o two exclusivity. In June, we saw reservoir pressure increase four months ahead of where we forecast it to occur. So things were happening. Unfortunately, as you saw by today's announcement, the operator of the iPSC suspended our operations and gave us twenty four hours to move all our equipment off the site. So we didn't, of course, because that would have been something that would not have had heritage ministry and environmental and management authority approval.

27:15 So that's the bad news. The good news is, of course, c c o o two two EOR in Trinidad remains top priority in terms of the c o two EOR steering committee. It's just unfortunate that we were invited to present to the committee after after being being summarily dismissed from the the area of operations. The committee were unaware of that. The committee is well known to be supportive of PREDATOR's c o two EOIR initiative in Trinidad. It ticks all the boxes for reducing c o two emissions. The University of West Indies is using PREDATOR data for various research studies, and PREDATOR itself is now moving to increase its ability to develop projects with lease operators.

28:10 We're working on a project with them, and there are several other partners in possible partners in Trinidad that are seeking to work with us to develop their c o two EOR initiatives provided by us. So it's not the end of c o two EOR. It's just entering a new phase, which hopefully will lead to an ability to restructure our c o two EOR services into a more commercial company that can effectively make more money out of the c o two EOR business than we did in the pilot study. In Ireland, we are progressing the FRSU.

28:57 Main things there are that we submitted the public consultation document to the court county council development plan, and now we're working on the major accident health and safety document, which is necessary for the pre application under the strategic infrastructure development initiative. So our RAM head and GAS successor authorizations are still being contemplated contemplated by the government. Not surprisingly, because of the green initiative over the last couple of years, very reluctant minister is going to be to approve any any such successor authorizations. That's all changed with the crisis occurring in the gas market in in Ireland.

29:46 So we're well placed to with the LNG and with the gas projects that we have in in Ramhead and South to to capitalize on that new recognition that GAS, according to the Irish government, will be with us for decades to come. Lastly well, not lastly, but I'll I'll wrap up two slides. So here's just a outline of what we plan for 2022, drill two wells to get to a CNG development effectively, drill the blue sky upside of the Jurassic prospect, do all the FEED studies, EIA, etcetera, financing for financial investment decision by the end of two thousand and twenty two and aim for construction of the the CNG site facilities by and have focused gas by h one.

30:42 So if we move on to this slide, I think you can see, from what we've, talked about to date, the various, parts of this slide that show that we're aligned with the energy transition. We're focused on gas and energy crisis and the energy crisis. Our core project is CNG, gas, in Morocco. We have material upside. 7,269 square kilometers is over 40 North Sea blocks in equivalent

31:12 terms. We are a proven Moroccan operator. We've drilled a well as an operator, our first well operator. We have a team that have drilled more than 20 wells in Morocco, and and we have a team that understands and has developed the Moroccan gas market. And this really shows our business development strategy. In our view, rotating the drill bit is where you create shareholder value, going back to my first slide showing how our share price reacted. In this kind of market, in this kind of shareholder appetite, it's only drilling that excites the share price. Other factors are subdued in the current climate. It's instant drilling, instant success, having that continuing act drilling activity that is important to drive share price, and we have the right team to deliver that.

32:05 So that's it, basically. There are appendices that you'll see at your leisure. I don't think they add anything to the presentation. The CPR resources are still as they were. Chances are assessed there at thirty four percent for m o u four. That's the old CPR. But, of course, that has been derisked by Finding GAS at m o u one. So the new CPR will be out maybe by the end of the year, maybe January, depending on timing, and that will obviously reflect a repositioning of the chance independent repositioning of the chance of success. So that's it. So I think I can look at the questioners now. Well, cool. Thanks very much for your presentation.

32:55 Ladies and gentlemen, please do continue to submit your questions using the q and a tab situated on the top right hand corner of your screen. But just while the company take a few moments to review those investor questions submitted already, I'd like to remind you that a recording of this presentation along with a copy of the slides and the published Q and A can be accessed via your investor dashboard on the Investor Meet company platform. I'd also like to remind you that your feedback is important to the company. And immediately after the presentation has ended, you'll be redirected for the opportunity to provide feedback in order that the company can better understand your views and expectations. We received a number of pre submitted questions from investors, which the management team have kindly provided written responses to, and these will be published with the live q and a post event. However, investors have also submitted a number of questions during the presentation today. And I wondered if I could hand back to you, Paul, to respond to those where it's appropriate for you to do so. So could I just ask you to read out the question and then who's it who who it's from? Thank you. Sure.

33:50 So starting with Russell p, how are you going to fund q one two thousand twenty two drilling operations? Very intuitive and support important question. We have high equity interest in our license. We're 75% undiluted in the GASIF license. We already have interest from a number of parties inside and outside of Morocco to participate at project level in a potential

34:21 appraisal drilling program next year and in terms of developing the CNG gas. And why that is attractive to those parties is because of the possibility of having a sustainable long term access to secure gas supplies. And sharing a little bit of the risk in having that opportunity with us is obviously one of the things that that potentially makes it attractive for us. So I think without going into detail, because everything is commercially sensitive and it's a competitive situation, that is our preferred way of making funding of the the program next year possible. And that, given the current gas crisis, is perhaps a little easier than it was, say, two months ago or even three one month ago.

35:14 So another question here from John m. Paul, please, can you give an overview of why mister Pilbain left the company? We Ron was at an age of 76. That's the first thing to say. So, you know, when you get to a certain age, you know, the the pressure of work is such that you might not enjoy it as much as as you did, say, ten years ago or five years ago.

35:45 But more significantly, I don't think it's a director who wishes to dispose of his stock at a time after drilling, basically, probably sent a negative signal to the market in terms of the results of the well. I don't think our board wanted to be in a position where we were signaling to the market that we accepted that there was a negative result from the for for the the well because someone was selling their stock. I think, you know, our directors are fully aligned with our shareholders, and we see value going forward based on the really good results of MOU one. Haven't sold a share in any, as a director of any PLC company that I've been involved in since I came to the market in 2004.

36:40 And, my position is that I see real value in what we've done and what we've derisked, and I think the board is aligned. And bringing Lonnie on board also strengthens our position in terms of what we do in Morocco. So I think it's more of a case of shareholder perception. We wanted shareholders to know that the board is 100% behind developing MOU one and MOU four and MOU five. There's a section here that I I oh, question I can't really answer. That's just a bit too direct. This t h, there seems to be more emphasis on going into production as opposed to prove up and sell. Is that the case?

37:34 And if so, why the change? Don't think it's a case of we're putting more emphasis on proving up production. I think probably we're putting less emphasis on proving up production by taking a sanguine look at Trinidad and saying, you know, the resources we personnel resources we have assigned to Trinidad over the last two years have been a fundamental drain on the company. C o two e r is difficult to operate, particularly from 6,000 miles away. What we're trying to do, basically, is prove up a CNG development project. And if someone wishes to come in and buy that project with lots of upside, we won't dismiss that opportunity next year. But in order to get that stage, we have to drill a couple of more wells, and we have to do all the derisking of the development.

38:27 Similarly for the LNG in Ireland, we have to do the the heavy lifting work, the regulatory work, the putting it all together work before we can entertain a sale. But there is no doubt that, you know, a sale of the company or sale of some of the company's assets or subsidiaries is still one way of monetizing value for shareholders. But we have to get there, and it's sometimes easier to think about getting there and then to actually put it in practice. But Morocco offers us a huge opportunity to have plenty of optionality. But, But, definitely, we're not putting more emphasis on production than proving up to sell. How Peter Peter h, how many signs in is MOU for looking to intersect?

39:19 Okay. Good question. If if I knew the answer to that precisely, I'd probably retire now. But I think what I would say is that we're drilling in MOU five in MOU 4. Sorry. We're targeting a gross interval of a 120 meters, which is compared to the 65 meters gross interval we targeted or found in MOU four. So the opportunity to find more sands than that is significant. The the risk will be whether some of the sands are independently sealed, for example. So finding a sand doesn't necessarily give you the answer. But the way to think about it is that we've got twice the volume of sand that we that sand that we could be looking at or more in MOU four. But more importantly, thicker thicker sands because they're great the the prospect is close to where the sands are coming into the basin. So the the potential to find very thick sands is significant.

40:23 I don't I don't know how many because I just don't know how they're gonna be distributed through a 120 meters of section. But pretty excited to drill this well, to be honest, because I think based on MOU one, there is so much upside in MOU four that it doesn't bear in thinking about what that could deliver deliver in a success case in terms of flow rate. Okay. So there's a question from here. So what is PREDATOR's current cash position? I can't tell you that because our interims are out next month, so I can't pre prejudge the not prejudge, but I can't undermine the fact that that's inside information until the interims come out next month.

41:17 And the future funding plans I've addressed in terms of how we're going to look at project finance, if you like, through bringing partners into the gas business, the gas development business, gas appraisal business. If the well was a success, as you say, why do you think share price is not reflective of that? Well, that's a good question. I think share price reflects how the market perceives, what a well has achieved or not achieved. And, obviously, the market, has perceived, based on the initial results for all the reasons, the restraints we had initially, that the well wasn't a, quote, unquote, success. But I think what we're trying to do and show today is the well was a success.

42:03 It's just a question of, unfortunately, there has to be patience in this business. If it were not a success, we wouldn't have completed it. If it were not a success, Lonnie wouldn't have joined us. So you have to trust your management with the experience in Morocco, with the expertise in Morocco, certainly the the largest shareholder in the company and ask yourself, well, if they're still pursuing this on a success basis, then it must have been a success and running room and upside for m o u four to build on that success is going to be demonstrated next year in a very big way. That's why we're in this company. That's why we're developing GAS in Morocco. And And my view, we're one of the better best management teams in Morocco from from the point of view of experience, expertise, and understanding, and we will deliver. Simple as that.

43:00 Peter h, I I do this one because it's it's technical, I like technology. Yeah. Are the MOU 4 Sands volcanic? No. There was a predrill MOU one. Was a suggestion historically that there were volcanics. Right? The the all the bright events that you see all around the the base of the volcanics. Absolutely not. MOU one proved that the sands have developed way above the volcanics, over a 100 meters, a 160 meters above the volcanics. And in fact, the volcanics are weathered. So they're subaerial, not submarine, and it's a thin layer of volcanics that you can map around the basin. All the sands sit well above the volcanics.

43:47 There's no evidence of volcanic material, significant volcanic material in the sand. So they're they're clean permeable sands are expected and have been found just like the Rab Basin main reservoirs. Tony w r Massey looking to expand into Morocco with PRD? No. I haven't suggested that to them. I guess Massey have a lot on their plate in Trinidad. I mean, Massey are a huge conglomerate. You know, they they turn over over a billion US dollars a year. They have many, many different businesses. Whether I think Massey I might suggest to Massey that they should expand into the supermarket business in The UK because I I suspect Massey would do a very good job of shipping food supplies around the way they ship our our c o two around, and they're hauling us ship our c o two around so efficiently. I suspect they'd do a good job and could contribute and help.

44:47 But in terms of Morocco, I don't think that there is a a business model yet for Morocco for for Massey to invest in. And and, certainly, you know, we're focused on gas and and not c o two sequestration or c o two supply. However, it's important to say that the small part of their business that is producing c o two, produces it for bottled water, for food, for ice, etcetera. And you saw recently in The UK, there was a c o two shortage. So, you know, there are opportunities for NASA to expand, but that that would would involve much bigger investment in capturing not capturing, but processing the c o two from the ammonia plants. There's huge upside in c o two production or capturing, if you like, from the ammonia plants. What But are you gonna use it for? You're gonna use it for sequestration injection.

45:38 But to expand the food industry, you'd have to do that on several continents, and that's just not commercial. So, Bradley Jay, could you provide further clarification on what led the operator in Trinidad to dismiss us so abruptly from present operations? Very simple answer, no. I don't know. And I don't even wish to speculate. You know, it's it's happened. We've we're focusing on what we do best. They focus on what they do best. We have made it clear in the correspondence to Heritage that we would like to be considered for the industry to t iPSC if it ever were to come up to become available in 2022 or later.

46:30 That's simply because we've invested a lot of time and effort into understanding what's going on there. So it would be obviously prudent for all parties to to look at a way of of keeping that intact. But at present, you know, you can't suspend and c o two e operation our operations and then expect to pick it up without there being some consequences in terms of the subsurface, for example. So I I won't go into detail on that. It's something that's happened. It's unfortunate. It's disappointing. But, hey, we're focused on doing what we do best, which is operating, getting on with our business, and looking to build value, and that's what we're gonna do as a management team. There there's a couple of questions here saying thank you for your hard work, but, look, that's what we're paid to do, you know, by our shareholders.

47:23 We try to do our best. Don't always get it right. You know, maybe we could have handled the r and s on the well better. But frankly, you know, we were under a lot of pressure from on him in in our r and s. And, you know, we couldn't afford to upset on him because they're our partner for the next, you know, couple of years in trying to develop CNG, and we need them on-site. So we've taken great effort to work with on him in all areas of their management structure, particularly at the highest level, to explain to them what is good for us and for our investors is good for Morocco. Morocco needs investment, never never more more so than the gas crisis, energy crisis.

48:11 So if we are being allowed to present, you know, positive, ambitious, attractive plans that will further gas investment in Morocco, then they should be supporting us at the very highest level. And Lonnie is on his mission as always to make sure that that message gets across. And I've had fifteen years now in Morocco, a fantastic relationship with many, many people in Morocco, but it's always quite difficult to get the commercial case across and the investment case across because, you know, they're they're private well, I was sorry. They're a state company, so so they don't rely on raising funds to the public market. And, you know, their their business business has changed over the years. It's the little companies like us and SDX and Chariot and Sound Energy.

49:04 We're the ones who are driving between us all in our different ways. You know, we may be competitors, but we're all aligned to try and find gas and produce gas in Morocco. We are driving exploration in Morocco. Nobody else you know, there there's maybe a well going on in the offshore with ENI and Qatar Petroleum next year, but we have driven exploration in Morocco. I drilled for Musaka with Cosmos and BP in 2014. I worked to to to bring to a stage where it was handed on to to someone who who who drilled it and and and did do well out of it initially, and and there is still a project there. No doubt that there's still a project there. So I I I suspect, you know, that it's about educating on him in terms of now that that to get investment, you gotta be a little bit more ambitious.

50:02 So, Aidan h, have you managed to get additional data on previous drills prior to your decision to drill MOU Northeast? Yeah. That's a that's a good question. Again, it's not always easy to get data for old wells. So the the key well for MOU North East is another, let's say, leap of faith. I know investors don't like hearing their CEO talk about leap of faith. But MOU one was a deep leap of faith, and it succeeded. MOU Northeast is another leap of faith. Everything about MOU Northeast is right geologically. It It has fantastic potential.

50:48 The database is poor in terms of last well was, you know, the magic thirty five years ago. But there is information good information on that well that that gives you reservoir potential, etcetera, and GASHOs. The two d seismic like, I am constantly told you have to shoot three d everywhere. But But I started my career after Libyan National Golf Corporation at Gulf Oil in Pittsburgh, research and development, as a geophysicist. So as I said in one of the questions I answered, I'm shooting myself in the foot by not shooting three d. But I generally believe if you have strength and understanding of what you're trying to drill, then three d is only gonna delay your drilling.

51:40 It's not gonna answer the questions. Only drilling answer the questions. Most of the major fields in Libya, in fact, all the major fields in Libya, were discovered without three d. So, you know, you've gotta get back to basics. Understand the geology, not spend $5,000,000 on a three d survey when I can drill a well to get the answers I want. You shoot the three d when you're in a development stage in field drilling. But the start of our process in GASIF is to find gas, prove the concept, get to development as quickly as possible, not wait, you know, two years to shoot several thousand kilometers of two d, and then, you know, ConocoPhillips can afford to do that. We can't. We gotta move quickly. There's a gas crisis. I'm not gonna wait a year and a half doing an environmental impact study, shooting 400 square kilometers three d, and then find the gas crisis is not quite as bad in two years' time as it is now. We gotta get out of there. Drill, drill, drill, drill, and prove up gas.

52:43 Okay. Sukman, I I hope that's pronounced right, and apologies if I'm not. I'm not the best person in the world even to pronounce my own name sometimes. I would have thought CPO CPLC, that's Conoco Hertz, would be most interested in being a JV partner. It's small change for them to support you in Morocco project. Well, without giving anything away, Morocco Conoco Phillips, before we even drilled, wanted we I gave them a presentation online, and then they wanted all our data weave out, even an NDA. So I shut them down. Like, we're not a charity. We're a business, and we get out and do things. We find things. We execute projects.

53:31 We drill. We're not a charity. If ConocoPhillips wants to have data from us, come up with a bottom hole contribution. I gave them an option to come in, exclusive option. You know, they didn't even have to pay for it. No. No. Just wanted data for a regional study. So I don't believe ConocoPhillips is going to be the right partner for us or anybody in Morocco. They have their own agenda. They have a lot of acreage, and they have a way of doing things. It's not our way. You know, we're entrepreneurial. We go out there. Our parties, our partners are people who need gas, people who like us who who who use initiative to develop things quickly and develop opportunities quickly, wanna do deals, wanna be commercial.

54:17 I've had the experience of big companies, and that's why I haven't worked in a big company for several years. I'm I'm entrepreneurial. I don't fit in with a big company. So so water k love this question. Hi, Paul. Can the drilling be speeded up, please? You know, I can speed up anything. I can be drilling at with Lonnie. I mean, it's not all about me. Our team can be drilling very quickly, but it comes down to several things. Firstly, lead time. We have to get the inventory, and that may take up to three months. Okay. That's because of COVID. It's because manufacturing capacity has declined, all kinds of factors.

55:05 We need the money. You know, if we want to drill tomorrow, we have to have money now. Right? So we have to that means being supported being supported in in a raise, which might cause dilution at very low price. So we have to balance the fact that we can get to drilling as quickly we can, which is q one next year, but we can try and fund it in a way that doesn't involve shareholder dilution. Because at the end of the day, yeah, we need to preserve that prep share price going forward. No. I think so. Paul, thank you. You've been very generous with your time then. I think you've actually addressed pretty much all the questions from the And person of course, the company will review any further questions submitted and publish responses where it is appropriate to do so. Paul, just before redirecting investors feedback, I wondered if I could ask you for a few closing comments.

56:05 Hopefully, they haven't all gone away now at 04:00. So I got five points. Right? Firstly, I know you won obviously has opened up a new gas base. So and, again, 30 feet, five years of nothing. So please be patient with us. We will deliver, but in our time scale based on our experience. Secondly, MOU one will be tested. It is the catalyst for the step out drilling of MOU four or five. Much as many people maybe somewhere would not like this to happen, it's going to happen, and there's nothing anybody can do about it. Thirdly, a CNG gas development is the obvious way to go. It's intuitive. It satisfies the market, the stranded market.

56:51 You have to have material gas sources to get it sustainable material gas source resources and running room to get there. 7,000 square kilometers? Well, we got a bit of running room. Two or three prospects already lined up, another four or five to go, plenty of running room. We can deliver. Fourthly, let's not forget Ireland, my favorite hunting ground. So it's been many, many years, forty years in Ireland, trying to promote gas, trying to buy Marathon Kinsale, trying to buy. Right now is our time and our place. We have an LNG project. We have two successor authorizations and gas prices through the roof, and everybody's screaming and worried.

57:37 Right now, we're there. We've spent a long time getting to that position. We stayed at the table no matter what happened. And lastly, please judge please trust management judgment on Moroccan gas. We We have the experience. We have the expertise, and we're focused on delivering it. That's why Lonnie came on board. That's why we work perfectly at our team. And I I'm really sorry he can't be here today, but you have to understand that the reasons for him not being here are very, very personal, and I'm not gonna discuss them. But it's hopefully, everything will be fine when he comes back from Canada. So that's it, really. You just have to trust us in terms of delivering where we're coming from.

58:27 Paul, Louie, thanks again for updating investors today. Could I please ask investors not to close the session as you'll now be automatically redirected for the opportunity to provide your feedback in order that the management team can better understand your views and expectations? This will only take a few moments to complete. However, it's of great value to the company. Sorry. Sorry. Can Can I I just just say say what I forgot to say? Thank you. Thank you very, very much to everybody. On behalf of the management team of PREDATOR OIL and GAS, we'd like to thank you, as as Paul just did, for attending today's session. That now concludes today's presentation. Good afternoon to you all. Thank you. Bye bye.