Memorandum of Understanding with Afriquia Gaz S.A.

Highlights

• Memorandum of Understanding signed with Afriquia Gaz S.A.
• 12-month exclusivity period to negotiate legally binding Gas Sales Agreement
• CNG to be purchased at the point of delivery of the gas to the CNG trailers
• Downstream transport and sale of gas to end user will be for Afriquia Gaz S.A.
• MOU facilitates increasing gas sales to up to 50 million cf/d

Predator Oil & Gas Holdings Plc (LSE: PRD), the Jersey based Oil and Gas Company with near-term gas operations focussed on Morocco, is pleased to announce the signing of a Memorandum of Understanding in relation to Gas Sales and Collaboration Agreements (the "MOU") with Afriquia Gaz S.A. ("Afriquia" and together the "Parties").

Duration of the MOU is for one year commencing 27 November 2023.

During the term of the MOU the Parties shall discuss in good faith and endeavour to agree the terms and conditions of a legally binding gas sales agreement ("GSA") between the Parties whereby Predator agrees to sell and Afriquia to off-take and purchase the CNG corresponding to Predator's participating interest in the Guercif Licence.

Afriquia will have a period of exclusivity during the duration of the MOU to negotiate the terms and conditions of a mutually acceptable GSA with Predator.

Subject to negotiations and terms and conditions to be mutually agreed between the Parties the GSA is anticipated to include the following scoping terms:

• Afriquia to purchase gas at the point of delivery of the gas to the CNG trailers;
• Predator shall fund and operate the CNG development and production facilities;
• Investment in CNG trailers shall either be through a purchase arrangement or through a leasing contract which shall be negotiated and agreed between the Parties and will be dependent on whether Predator or Afriquia are the providers of the CNG trailers;
• Take-or-Pay provisions (and associated make-up and carry forward provisions) and fixed term contracts with an agreed Purchase Price for 8 to 10 years;
• It is anticipated that any increases in the initial contracted daily deliveries shall be phased over 3 years and shall be subject to an absolute cap of 1.4 million cubic metres per day (equivalent to 50 million cf/day) and the results of the Guercif Rigless Testing Programme and 2024 Drilling Programme.

For information on Afriquia Gaz S.A.

Paul Griffiths, Executive Chairman of Predator, commented:

"We are pleased to have agreed the MOU with Afriquia Gaz S.A. in relation to entering into substantive discussions regarding a Gas Sales Agreement upon completion of the rigless testing programme at Guercif.

This is the first MOU of its kind in Morocco to address specifically the sale of CNG at a scale of up to potentially 50 million cubic feet of gas per day over time.

The MOU ensures that we have the solid foundation to penetrate the downstream Moroccan industrial market. It allows us to focus on our core upstream strengths which are the identification and maturing of exploration assets where success is aligned with capturing the greatest uplift for shareholders in the hydrocarbon value chain for prudent levels of investment."

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