Predator Oil & Gas (LSE:PRD) has signed a rig contract with Star Valley Drilling for Rig 205 to drill the Snowcap-3 well in Trinidad, marking another step in the company’s planned exploration and appraisal programme across Trinidad and Morocco.
Drilling at Snowcap-3 is scheduled to begin after the MOU-6 well in Morocco has been completed. Predator has arranged the sequence to allow management to maintain effective operational oversight as drilling activity progresses across the two jurisdictions.
Snowcap-3 will primarily target the Herrera #8 Sand. Information obtained from Snowcap-2ST-1, Snowcap-1 and Rochard-1 indicates an extrapolated oil column of approximately 600 feet within the target interval.
The new well is designed to test the reservoir at a structurally higher position than previous drilling. It will also investigate the Herrera #1 Sand as a secondary objective, again at a higher structural position than previously evaluated.
Preparations for the drilling campaign are already well advanced. Predator said the required rig arrangements, environmental approvals, civil engineering works, technical programmes and service contractors are in place, positioning the company to move into an intensive period of drilling activity.
Alongside its immediate drilling plans, Predator is evaluating additional opportunities that could broaden the commercial potential of its portfolio. In Trinidad, the company is considering whether surplus wellhead gas could be converted into electricity to supply hydrogen fuel cells and data centres.
In Morocco, Predator is exploring the possibility of a technical collaboration focused on semi-conventional biogenic gas. Such a programme could provide additional development options for its gas assets while helping to reduce technical uncertainty ahead of future appraisal activity.
The company’s wider financial position remains challenging. Predator continues to record substantial losses and cash outflows despite a recent improvement in revenue generation. Technical indicators are also moderately negative, with the shares trading below important moving averages and MACD remaining negative.
Conventional valuation metrics provide limited support while Predator remains loss-making, resulting in a negative price-to-earnings ratio.
More about Predator Oil & Gas Holdings Plc
Predator Oil & Gas Holdings Plc is a Jersey-based oil and gas company with exploration and hydrocarbon production interests in Trinidad and Morocco.
Its portfolio includes onshore gas assets in Morocco that could support compressed natural gas or micro-LNG developments. In Trinidad, the company is focused on onshore oil opportunities where production enhancement programmes and infill drilling could potentially be undertaken under favourable fiscal terms.
Leave a Reply