(Alliance News) - Predator Oil & Gas Holdings PLC on Wednesday said it is rasing GBP3.3 million via a placing of 60.0 million shares at 5.5 pence each.
Predator Oil & Gas is a Jersey-based oil and gas company with operations in Trinidad, Morocco and Ireland. Its shares plummeted by 18% to 6.40p each in London on Wednesday afternoon.
The issue price of 5.5p is a 30% discount to Tuesday's closing price of 7.81 pence, being the last business day before the announcement.
Currently, the company said it does not have sufficient headroom to issue 60.0 million shares. Therefore, it is proposing to issue and admit 45.0 million shares and for Chair Paul Griffiths to transfer 15.0 million shares by way of a loan.
Under this agreement, the return of the 15.0 million shares loaned to Predator Oil & Gas will be returned to Griffiths by August 31, 2023.
Predator Oil & Gas said the proceeds will be spent entirely on "high impact and high reward" drilling to target the Moulouya Fan penetrated in MOU-1 in 2021.
"MOU-2 will target the potential reservoir "sweet spot" for which net Contingent Resources are in the range 295 billion cubic feet, best estimate, to 708 billion cubic feet, high estimate," it added.
The company said that it is now fully funded to complete and test the MOU-2 well and to test the MOU-1 well at the same time from existing cash resources.
Executive Chair Paul Griffiths said: "It was absolutely necessary to take advantage of a narrow window in an otherwise difficult and highly competitive market to raise funds to enable the high impact, high reward MOU-2 drilling to be executed whilst there is still some availability of long lead items required for drilling and before the cost of well services increases further as demand outstrips supply."
By Sophie Rose; sophierose@alliancenews.com
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Predator Oil (PRD)