The Jersey-based Predator Oil & Gas Holdings (LON:PRD) is looking to raise at least £7m through a Placing of new shares to be issued at 11p each.
The principal near-term activities of the company are exploration and appraisal drilling for gas onshore Morocco, exploration and appraisal drilling for oil onshore Trinidad and injecting carbon dioxide into existing, and potentially future, wells in Trinidad for enhanced oil recovery and carbon dioxide sequestration.
Earlier in July analyst Lionel Therond, at the group’s Joint Broker Fox Davies Capital, put out a new Target Price on the group’s shares following the publication of the MOU-4 drilling results and the MOU-3 NuTech log analysis results, showing that the MOU-4 Moulouya Fan seismic anomaly now extends further than previously mapped.
The MOU-4 well has successfully intercepted potential gas reservoirs across a range of primary and secondary targets, which de-risks the volumetric upside potentially associated with the deeper Jurassic interval.
Therond considers the Jurassic gas play to be of utmost significance. MOU-4 has begun the process of de-risking a large Jurassic potential gas trap that had never been encountered in northern Morocco.
An extensive rigless testing programme is being readied for MOU-1, MOU-3 and MOU-4, including the company’s Jurassic interests, details of which are due in the coming weeks.
Ahead of that rigless programme, Therond has confidently updated his Total Risked NAV on the group’s shares from 25p to 35p each.
The group’s shares, which have risen from 6p in mid-June to a recent peak of 21.5p last Wednesday, closed last night at 14.5p, nearly 10% off during the day.
The company intends to utilise the majority of the Net Placing Proceeds for MOU-4 well costs and the rigless well testing of MOU-1 and MOU-3 and MOU-4.