Predator Oil & Gas Holdings PLC (LSE:PRD), the LSE-listed oil and gas company with producing operations in Trinidad and Morocco, has raised £3 million before expenses through a placing of 85.71 million new shares at 3.5p each.
The shares fell 15% to 3.55p following the announcement, which dilutes existing shareholders to fund a programme of work spanning Trinidad, Morocco, and a potential offshore prospect in Ireland.
AlbR and OAK Securities acted as joint brokers on the placing.
The bulk of the proceeds will be directed at the company's Trinidad operations, where site works have commenced on the Snowcap-3 well.
Predator plans to deepen the well by 150 feet and add an additional testing programme targeting the Herrera #8 Sand, based on a revised reservoir correlation.
Funds will also cover the reactivation of the Snowcap-2ST1 and Jacobin-1 wells and a gas re-injection study aimed at maintaining higher production rates for longer.
April net production revenues in Trinidad came in 26% ahead of the company's internal forecast, with Predator receiving approximately $95,000 after costs and royalties.
In Morocco, the proceeds will support the purchase of long-lead inventory for the MOU-6 well at the Guercif permit, where logistics have been affected by the Middle East conflict, alongside preparatory work for a pilot compressed natural gas development and an environmental impact assessment for potential 3D seismic in 2027.
A new element of the investment case is the Corrib South prospect offshore Ireland, where Predator said it had received a positive communication from the regulatory authorities setting out a clear path to securing a successor authorisation.
A 2019 competent person's report estimated unrisked gross recoverable gas resources of 424.8 billion cubic feet at P50 rising to 904.7 billion cubic feet at P10, with a 44% chance of success.
The prospect sits adjacent to the Corrib gas field infrastructure and Predator said it would update its technical package to include gas storage potential, capitalising on Europe's drive to strengthen security of energy supply.