(Alliance News) - Predator Oil & Gas Holdings PLC on Thursday said it is remobilising its testing team as it expects to receive a joint ministerial order allowing an extension of its exploration licence, following "unforeseen" issues.
Predator shares fell 17% to 9.18 pence each on Thursday morning in London.
The Jersey-based oil and gas company focussed on Morocco, Trinidad, and Ireland said it expects a joint ministerial order approving the Guercif Petroleum Agreement Amendment No.3 to be issued "shortly" by the Moroccan Ministry of Energy and Ministry of Finance.
The company said this follows an "unforeseen administrative regulatory issue" which delayed the issue of the order. Due to this, the firm said it stood down its rigless testing team, which had been on standby.
It noted that its rigless testing team is currently rescheduling and remobilising, with rigless testing set to begin at the site in January 2024.
Chair Paul Griffiths said: "We have worked diligently to plan the necessary sequence of activities required to highlight the gas potential of the area and to be in a position after rigless testing to submit an application for an Exploitation Concession.
"Unfortunately an unforeseen administrative regulatory issue totally out of the company's control caused a delay in the execution of the rigless testing programme. It is not possible to keep well services, equipment and personnel on standby indefinitely. Such services are in high demand at present elsewhere in North Africa.
"The costs that would have been incurred by the company are simply not justifiable when prudent management of cash resources is essential during a time of uncertainty in the equity markets in the oil and gas sector."
Separately, the firm said it has signed a 12-month exclusive negotiation deal with Afriquia Gaz SA for a legally binding gas sales and collaboration agreement
The company said that under the deal, Predator will sell compressed natural gas from its Guercif licence in Morocco.
Predator noted that it will fund and operate its CNG development and production facilities.
The deal is set to run for between 8 and 10 years, at a fixed purchase price. Increased deliveries will be subject to a cap of 1.4 million cubic metres per day.
By Harvey Dorset, Alliance News reporter
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Predator Oil (PRD)