Placing to Raise £2.5 Million
Predator Oil & Gas raises £2.5m through placing of 166.7m shares at 1.5p per share.
- Gross proceeds £2.5m
- Placing price per share 1.5p
- Placing shares issued 166,666,667
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Highlights
MOU-6 perforating and testing with final results anticipated within 2 weeks
Snowcap-3 has received regulatory approval with commencement in November
Positive Goudron field heavy workovers – GY 664 37 bopd and GY 665 18 bopd
Company is positioned for new positive scenario for partnering in Morocco
Provides catalyst to plan MOU-5 deepening to evaluate helium potential
First study being initiated for unconventional biogenic gas resources in 120km² area
Award of Corrib South successor authorisation potentially closer
Predator Oil & Gas Holdings Plc (LSE: PRD), the Jersey based Oil and Gas Company with producing hydrocarbon operations focussed on Trinidad and Morocco, announces that it has conditionally placed 166,666,667 new ordinary shares of no par value in the Company (the "Placing Shares") at a placing price of 1.5 pence each (the "Placing Price") to raise £2.5 million (before expenses) (the "Placing").
The capital raise of £2.5m was arranged by the Company’s joint brokers AlbR Capital Limited and Crest Corporate Broking.
Use of Proceeds
The Proceeds of the Placing, less expenses, as detailed below, will be the primary catalyst for the key strategic business growth objectives below.
Trinidad production growth
Expand the Snowcap-3 production facilities for increased initial throughput to accelerate sales revenue growth.
Hot-stack the Snowcap-3 drilling rig at the well site to be drill-ready for additional development wells.
Opt to fund additional well testing on up to 2 Goudron infield development wells
To be drilled by NABI Construction under the Master Services Agreement to retain the majority of production upside to contribute to funding a potential gas-to-power option for Data Centres for Goudron stranded gas.
Moroccan business development
Large Moroccan companies are moving into the gas sector in Morocco to fund gas appraisal and development and upstream exploration.
This is a new and welcomed strategic development in the energy sector in Morocco.
The Company is well-placed to conclude partner negotiations after the MOU-6 well test results are released following the completion of well testing operations.
To maximise the potential areas of business cooperation and partner funding the Company is using net proceeds from the placing to position the Company as a leader for helium exploration, potentially large unconventional biogenic gas resources, and gas storage based on the results of the 6 wells the Company has drilled in Guercif, representing the largest focussed exploration drilling programme onshore Morocco ever undertaken over the past 25 years.
Planning and long-lead inventory-build to deepen the MOU-5 well by at least 640 metres
to test for helium, potentially associated with thermogenic gas, sealed by Triassic salt and to evaluate gas storage potential in the anticipated salt section.
Commission the first biogenic gas study for potentially large in-place unconventional gas resources in an area of up to 120km².
This will involve collaborating with a Romania company with specific experience and production expertise for potentially analogous sequences in western Ukraine and Romania.
For context only western Ukraine has been producing biogenic gas since 1924 with 111 billion cubic metres (3.92 trillion cubic feet) of gas resources. Now largely depleted the fields have been converted into Europe’s largest natural gas storage network: the Bilche-Volitsko-Uherske facility holding up to 17.05 billion cubic metres (602 billion cubic feet).
USE OF PROCEEDS
Budgeted estimated costs (£)
Onshore Trinidad
| Snowcap Production Facilities Expansion of Snowcap-3 (“SC-3”) civil engineering works to include expansion of production facilities and secure area to warm- stack SC-3 rig for further development drilling Increase size of production capacity to accommodate increased future production and wax treatment processing Rehabilitation of storage tanks at Sales Point Snowcap-3 Supplemental Drilling Costs Increased inventory, freight and services costs due to inflation resulting from Middle East Conflict Production Goudron Field Contingency to 100% fund under the NABI Master Services Agreement perforating and flowing additional reservoirs in the two planned NBI new wells in Goudron | 200,000 350,000 250,000 500,000 240,000 |
|---|---|
| Onshore Morocco | |
| Support ongoing discussions to conclude partnership with an indigenous Moroccan entity for development planning and upstream exploration for helium Biogenic gas unconventional gas resources Collaboration with Romanian company Geo Line Solution S.R.L. to characterise and provide potential production analogues for the Guercif Basin biogenic gas based on Romania and western Ukraine fields Well planning and initial long-lead-inventory build to deepen MOU-5 to test for sub-salt helium and potential thermogenic gas MOU-6 Supplemental Drilling & Well Testing Costs Increased inventory, freight and services costs due to inflation resulting from Middle East Conflict and more expensive logging and testing programme | 100,000 175,000 500,000 |
| Offshore Ireland | |
| Corrib South Successor Authorisation Liaison with DCCE regulators to support ongoing financial review with production forecasts Trinidad | 10,000 |
| Administrative expenses | 175,000 |
| TOTAL COSTS | 2,500,000 |
Completion of the Placing
Completion of the Placing is conditional on, inter alia:-
Admission, Settlement and Dealings in the new Placing Shares
An application will be made to the London Stock Exchange for Admission of the Placing Shares which is expected on or around 20 October 2026.
The rights attaching to the new Placing Shares will be uniform in all respects and all of the Placing Shares will rank pari passu, and form a single class for all purposes with, the existing issued shares of no par value in the Company.
Warrants
Participants in the Fundraising will receive 1 warrant for every Placing Share subscribed for, exercisable at £0.025 (2.5 pence) per share for a period of 24 months from today.
11,666,666 broker warrants are being issued exercisable at the Placing Price. These warrants have an expiry date of thirty-six months from today.
Total Voting Rights
Following Admission, the Company has ordinary shares of no par value in issue, each with one vote per share (and none of which are held in treasury). The total number of voting rights in the Company is therefore 1,071,104,857. This figure of 1,071,104,857 may be used by shareholders in the Company as the denominator for calculations to determine if they have a notifiable interest in the share capital of the Company under the Disclosure Guidance and Transparency Rules, or if such interest has changed.
Appointment of Joint Broker
The Company is appointing CREST Corporate Broking (“Crest”) (a trading name of Cal Investments), as joint broker to the Company. Crest has been appointed with immediate effect, with AlbR Capital Limited acting alongside Crest as joint broker.
- Stephen Boldy, Non-executive Chairman of Predator Oil & Gas Holdings Plc commented:
"Proceeds from the placing announced today are focussed on exploiting a window of opportunity to accelerate production growth in Trinidad to avail of higher oil price and economies of scale.
Additionally, we have experienced that drilling and well testing costs have increased due to global inflation generated by the Middle East Conflict. It is absolutely critical therefore that the Company remains well capitalised as it transitions to accelerated production to demonstrate short-term financial strength and ability to access the capital markets for business growth to support partnering up in Morocco and the DCCE financial review in the context of the potential awarding of a Corrib South successor authorisation. Corrib South has the potential to extend the life of the Corrib infrastructure and provide a new indigenous gas supply and reduce dependence on imported gas from Britain”.
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Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.