Predator Oil & Gas Holdings said it had raised £3.3 million, or more than MAD 41.5 million, through a placement of 60 million shares at 5.5 pence each, according to a recent press release.
This issue price is 30% lower than the 7.81 pence posted at the time of closing on Tuesday, the last business day before the announcement. Predator Oil & Gas does not currently have “sufficient headroom to issue 60 million shares,” it is reported.
The British company is therefore proposing to issue and admit 45 million shares, with the remaining 15 million to be in the form of a loan, transferred by chairman Paul Griffiths.
This will be entirely dedicated to “high-impact, high-revenue” drilling to target the Moulouya MOU-1 well, the statement said.
“MOU-2 will target the potential sweet spot reservoir for which the net contingent resources are between 295 billion cubic feet, best estimate, and 708 billion cubic feet, high estimate,” the same source added.
As a result, Predator Oil & Gas now has the funds to complete and test the MOU-2 well, in addition to testing the MOU-1 well.
“It was absolutely necessary to take advantage of a narrow window in an otherwise difficult and highly competitive market to raise funds to allow the MOU-2 drilling to proceed while there is still some availability of long-term items required for drilling and before the cost of well services increases further as demand outstrips supply,” said Griffiths.
As a reminder, last March, the company announced the raising of more than MAD 12.9 million, to expand and execute its 2022 drilling program in Morocco.
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