There is an old stock market adage/cliche that it's better to travel than arrive.
This was the case for Predator Oil & Gas Holdings PLC (LSE:PRD), whose shares tumbled 22% to 4.02p on Monday as investors used the latest well update as a chance to take profits.
The company delivered promising drilling results from its MOU-5 well in Morocco, confirming its pre-drill play concept and uncovering an unexpected 30-metre sand interval that had never been seen in the Guercif Basin before.
MOU-5 hit the Domerian carbonate target deeper than expected due to mobilised salt, which could enhance the top seal—a crucial factor in trapping hydrocarbons. A helium show was also detected, adding a potential new exploration angle.
The well has been suspended for future re-entry, while Predator now plans to run 3D seismic surveys and seek a farm-out partner to help fund the next stage of exploration.
CEO Paul Griffiths called the results a “game-changer” and is confident the findings will attract new investment. Meanwhile, Predator is also focusing on boosting production in Trinidad and advancing its MOU-3 gas project.
Despite the sell-off, the company insists the latest results are a major step forward, with further updates expected as data is analysed and plans take shape.