Predator Oil & Gas (PRD) Shares Rose 4.74% on Operations Update

The Predator Oil & Gas Holdings PLC (LON: PRD) share price rose 4.74% after issuing an update on its gas offtake, development financing and rigless testing. Some of the report’s highlights included that the company has commenced discussions to sell its share of gas from the wellhead.

The company also issued an update on the financing options for its share of future potential CNG development costs and is discussing the same with preferred parties. The oil and gas company also announced that it had amended its rigless testing programme to test the MOU-3 well first. 

The high-impact MOU-3 well could lead to commercial negotiations for the offtake of gas from the well. The company has opened exploratory discussions with a group focused on the downstream energy business to sell its share of gas produced from the well. However, this is subject to an approved CNG development plan. 

To fast-track the discussions about the sale of its share of gas based on an approved Declaration of Commerciality, the firm decided to amend its rigless testing programme and test the MOU-3 well first. 

Predator Oil & Gas also decided to postpone using Sandjet as the means of perforating after waiting over three weeks for an in-country wireline logging unit. The company intends to test the MOU-3 well using conventional perforating guns.  

Paul Griffiths, Executive Chairman of Predator, commented: “Following the completion of drilling and prior to the execution of the rigless testing programme, the Company has had a period of time to integrate the results from its MOU-1, MOU-2, MOU-3 and MOU-4 wells and mature its understanding of the structures holding possible gas accumulations. On this basis, the MOU-3 well and structure is now defined as the focal point for a potential CNG development hub. As a result, this well has been promoted to the first well in the rigless testing programme.”

“Good progress has been made on opening discussions for the offtake of gas on a larger scale than was previously envisaged by the “Proof of CNG Pilot Concept” strategy. Financing options are being crystallised which will allow funds to be re-purposed for further appraisal drilling activity and value accretion through drilling success.”

Predator Oil & Gas (PRD) share price. 

The Predator Oil & Gas (PRD) shares increased 4.74% to trade at 11.26p, from Wednesday’s closing price of 10.75p.