Pauls Comments24 Mar 2025 07:09
Paul Griffiths, Chief Executive Officer of Predator, commented:
“The update in respect of our Trinidad operations and the acquisition of CEG Trinidad demonstrates that we are making steady regulatory, operational and commercial progress towards developing our production capabilities in Trinidad.
Production has been established and the sales mechanism secured along with an innovative and commercially attractive royalty override agreement for one of our producing asset.
We are fully-funded from existing cash resources for all our firm operational plans in Trinidad and Morocco as laid out herein. Additional discretionary balance sheet cash is available for further acquisitions of producing assets in Trinidad.
Production revenues accruing during 2025 are considered only as additional discretionary cash and not included in our current cash flow models. Production income from the CEG assets to be acquired will be significant but is based on an existing production profile. We have shown from a very encouraging start to the Bonasse workover programme and our commercial transactions that scope exits for boosting the production profiles from a very conservative current base line.
Thermo-chemical wax treatment may enhance these base lines over time by up to three fold. Infill drilling and heavy workovers under our PAFSMA also have the ability to boost revenue generation at no cost to the Company.
We are fully-funded to perforate the “low hanging fruit” that the shallow higher pressure gas in MOU-3 always represented. Two years ago the market was focussed on high impact materiality. Today cash flow generation and conserving existing cash resources is the critical medium term strategy for 2025, even if it is unspectacular, until the market re-adjusts to a more stable footing and the farmout potential of the MOU-5 structure can be realised.
The Company has always considered it important to maintain a debt-free status, never as important as at a time of unpredictability in the stability of the public markets.
We are confident about our Company’s future as we have taken into account our growing ability to organically fund any discretionary spending to offset the weakness in the public equity markets.”
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