Predator Oil & Gas Holdings Plc (LSE:PRD) has announced a conditional placing to raise £2.5 million before expenses, with proceeds allocated to production development in Trinidad, exploration activities in Morocco and regulatory work relating to its Corrib South project offshore Ireland.
The Jersey-based oil and gas company has conditionally placed 166,666,667 new ordinary shares at 1.5 pence per share. The fundraising was arranged by joint brokers AlbR Capital Limited and Crest Corporate Broking.
The company said the financing would support planned production expansion at Snowcap-3, further development of the Goudron field and additional exploration and testing activities in Morocco.
Trinidad Production Development
Predator intends to use part of the proceeds to expand production facilities at Snowcap-3, which has received regulatory approval and is scheduled to commence operations in November 2026.
The planned expenditure includes £200,000 for civil engineering works, expansion of the production facilities and provision for retaining the drilling rig at the site for potential additional development wells.
A further £350,000 has been allocated to increasing production capacity, including facilities for wax treatment, while £250,000 is earmarked for rehabilitating storage tanks at the sales point.
The company has also budgeted £500,000 for additional drilling-related inventory, freight and services costs, which it attributed to inflation associated with the Middle East conflict.
At the Goudron field, Predator reported production rates of 37 barrels of oil per day from well GY 664 and 18 barrels per day from GY 665 following heavy workover operations.
The company has allocated £240,000 to potentially fund additional perforating and flow testing across further reservoirs in two planned Goudron development wells.
These wells are expected to be drilled by NABI Construction under an existing Master Services Agreement. Predator said retaining a larger proportion of the resulting production could contribute towards funding a potential gas-to-power project using stranded gas from Goudron to supply data centres.
Morocco Exploration and Partnership Discussions
In Morocco, Predator is continuing its exploration and development activities in the Guercif Basin, alongside discussions with potential local partners.
The company expects final results from perforating and testing operations at MOU-6 within approximately two weeks.
Predator said it intends to advance partnership negotiations following the release of those results, with discussions covering potential gas development, upstream exploration and helium opportunities.
The company has drilled six wells in the Guercif Basin and plans to use information gathered from these operations to assess further exploration opportunities.
A total of £500,000 has been allocated to additional MOU-6 drilling and well-testing costs, including increased expenditure on equipment, freight, services, logging and testing.
Predator has also earmarked £175,000 for planning and initial procurement activities associated with deepening the MOU-5 well by at least 640 metres.
The proposed programme is intended to investigate helium potentially associated with thermogenic gas beneath Triassic salt formations. The company also plans to assess the potential for natural gas storage within the anticipated salt interval.
Separately, Predator intends to commission a study examining unconventional biogenic gas resources across an area of up to 120 square kilometres in the Guercif Basin.
The company has allocated £100,000 to this work and plans to collaborate with Romanian company Geo Line Solution S.R.L., which has experience in geological formations and gas production in Romania and western Ukraine.
The study will examine potential geological comparisons and production characteristics to inform further evaluation of the Moroccan acreage.
Predator cited historical biogenic gas production in western Ukraine as geological context, although the existence and commercial potential of comparable resources in Guercif remain subject to evaluation.
Corrib South Regulatory Process
Predator has allocated £10,000 to support regulatory engagement relating to its proposed Corrib South successor authorisation offshore Ireland.
The company said discussions with regulators at the Department of Climate, Communications and the Environment (DCCE) include an ongoing financial review supported by production forecasts from its Trinidad operations.
The potential award of a successor authorisation remains subject to the relevant regulatory process.
Predator has identified Corrib South as a potential source of additional indigenous gas supply that could utilise existing infrastructure.
Placing Terms and Share Capital
The placing is conditional on the new shares being admitted to the Equity Shares (transition) category of the Official List and to trading on the London Stock Exchange’s main market.
Admission is expected on or around 20 October 2026.
The new shares will rank equally with existing ordinary shares.
Participants in the fundraising will receive one warrant for each placing share subscribed for. These warrants will be exercisable at 2.5 pence per share for 24 months.
In addition, the company will issue 11,666,666 broker warrants exercisable at the placing price of 1.5 pence per share, with a 36-month expiry period.
Following admission, Predator expects to have 1,071,104,857 ordinary shares in issue, each carrying one voting right. The company will hold no shares in treasury.
The fundraising will therefore increase the company’s issued share capital, while the accompanying warrants provide for the potential issuance of further shares if exercised.
Predator also confirmed the appointment of Crest Corporate Broking, a trading name of Cal Investments, as joint broker with immediate effect, alongside AlbR Capital Limited.
Management Commentary
Dr. Stephen Boldy, Non-executive Chairman of Predator Oil & Gas Holdings Plc, said the placing was intended to support production development and the company’s broader financing requirements.
He attributed higher drilling and testing costs to global inflation associated with the Middle East conflict and said maintaining sufficient capital was important as Predator sought to expand production and progress its Moroccan and Irish projects.
The company expects its near-term operational programme to include the start of Snowcap-3 activities in November, publication of MOU-6 testing results and continued planning for the MOU-5 deepening programme.
Completion of the placing remains conditional on admission of the new ordinary shares.
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