Predator Oil & Gas Holdings (LSE:PRD) will raise £3 million before expenses via a conditional placing at 3.5p a share to fund deeper drilling, appraisal and technical work across Trinidad, Morocco and the Corrib South prospect in Ireland.
The oil and gas company, which has producing operations focussed on Trinidad and Morocco, placed 85.71 million new shares and said April net production receipts in Trinidad were approximately US$95,000 after costs and royalties, 26% ahead of its internal forecast.
Net proceeds, less expenses, will be spent in priority order on: deepening Snowcap‑3 by 150 feet and adding an extra Herrera #8 Sand testing programme (budgeted c. £250,000 plus a £400,000 contingency); reactivating Snowcap‑2ST1 and Jacobin‑1 and funding a gas re‑injection feasibility study for Snowcap‑1/2ST1 (c. £250,000 and £220,000 plus contingencies).
Also, it earmarks the purchasing of long‑lead MOU‑6 inventory (£520,000) and carrying out reservoir and facilities planning for a pilot CNG development (£100,000) with an EIA (£85,000); and updating the Corrib South technical package and Competent Person’s Report and testing the market for partners and potential 3D seismic (c. £250,000, £50,000 and £50,000).
The placing shares represent approximately 9.52% of the enlarged share capital of 900.57 million shares.
"The new development associated with the application for the Corrib South successor authorisation is a significant boost for the company's potential operations offshore Ireland, that have hitherto been in a state of limbo," Paul Griffiths, Chief Executive Officer, said.
