Predator Oil & Gas Holdings plc reported more than a three-fold increase in operating losses from drilling for potential additional gas resources onshore Morocco.
FINANCES
Half-year results to 30 June saw losses of £2,361,721 (H1 2022: £599,789).
Cash reserves totalled £1,006,006 (full year 2022: £3,323,161) and restricted cash of £1,188,863 (FY 2022: £1,245,798) as the security deposit for the Guercif licence bank guarantee.
The balance outstanding of the loan by Predator to FRAM for the investment in the pilot CO2 enhance oil recovery (EOR) project in Trinidad was £630,575 (2022: full year £659,504).
The company raised £1,139,950, before expenses, via two placings by issuing 14,174,056 new ordinary shares.
Predator holds no third-party debt.
OUTLOOK
Rigless testing is planned to start and complete during the remainder of 2023 in Morocco.
Subject to results, the compressed natural gas development plan is targeting first gas in 2024 while the company will also evaluate and potentially progress further high impact drilling opportunities in Morocco.
Regarding the CO2 EOR project in Trinidad, should Predator complete its acquisition of TRex Holdings Trinidad Ltd, operator and 83.8% owner of the Cory Moruga licence, a high impact appraisal well might be scheduled for 2024.
Executive chairman Paul Griffiths added that the first six months had been particularly active for the company with the start of drilling onshore Morocco.
“Operations have been managed efficiently and initial drilling results are very encouraging.
“MOU-3 results have so far exceeded management’s pre-drill expectations.
“Gas is a commodity in Morocco which is much in demand and the industrial market ensures gas price stability within a favourable fiscal regime that facilitates longer term planning and creates greater certainty for asset valuation independent of global pricing trends.
“Our strength lies in being an early mover to identify value-creating opportunities and to patiently bring them to a stage where early monetisation is a realistic goal.”