Predator Oil & Gas secures oil sales, expands in Trinidad—What it means for investors

Predator Oil & Gas Holdings Plc is advancing its footprint in Trinidad’s energy market with the commencement of oil sales from the Bonasse field and the acquisition of Challenger Energy’s Trinidad-based assets. The move comes as the company ramps up its production capabilities in one of the world’s most established onshore oil provinces.

The acquisition of CEG Trinidad, which remains in the regulatory approval phase, is set to add 272 barrels of oil per day (bopd) to Predator’s production profile. Meanwhile, the company has executed a Bonasse oil off-take agreement, marking the formal initiation of oil sales. These developments signify a broader strategy aimed at increasing production volumes while securing stable revenue streams.

What Does the Bonasse Field Redevelopment Mean for Production Growth?

The Bonasse oil field is at the heart of Predator Oil & Gas’s Trinidad operations, where the company is working to restore infrastructure and optimize crude oil output. In-field gathering systems and storage tanks have been reactivated, ensuring a seamless flow of crude oil from production to sale.

Predator has partnered with Steeldrum Oilfields South Erin Trinidad Limited, allowing it to sell Bonasse crude under existing commercial agreements. Additionally, a Production and Field Services Management Agreement (PAFSMA) has been signed with NABI Construction (Trinidad and Tobago) Limited, a specialist in workover operations and drilling services. Under this agreement, Predator will receive 30% of gross sales revenue at the point of sale, while NABI assumes all investment and operational costs. If NABI initiates new drilling activity, Predator is entitled to 20% of revenues after NABI recovers its drilling expenses.

The workover programme at Bonasse is progressing, with an initial production target of 35 bopd. The first two reactivated wells have already established 16 bopd, and additional wells are expected to further increase output.

How Could Thermo-Chemical Wax Treatment Boost Trinidad’s Oil Production?

A significant development for Predator Oil & Gas is the introduction of SGN thermo-chemical wax treatment technology, which has received regulatory approval for use in Trinidad. The Jacobin-1 well will be the first test site for this technology, which has demonstrated the potential to triple oil flow rates in Saudi Arabian fields.

This approval clears the way for workovers at Jacobin-1 and Snowcap-1, both located within the Cory Moruga Exploration and Production Licence. With funding already secured, Predator anticipates initial revenues from this workover programme by July 2025.

The application of thermo-chemical wax treatment in Trinidad’s mature oilfields could significantly improve recovery rates, making it a game-changer for onshore oil production in the region. Given its proven success in other markets, industry analysts will closely monitor the effectiveness of this approach in enhancing the productivity of Predator’s wells.

What Is the Latest on Predator’s Gas Operations in Morocco?

While Trinidad remains a key focus, Predator is also advancing its Moroccan natural gas operations, particularly at the MOU-3 project. The company is preparing to perforate higher-pressure shallow gas reservoirs, with the goal of confirming commercially viable flow rates.

If successful, Predator aims to farm out a stake in the shallow gas project to a local entity, leveraging its Moroccan assets while maintaining financial flexibility. The company is also finalizing a farmout package for a 3D seismic survey and an updip well targeting the Titanosaurus structure, incorporating new insights from the MOU-5 drilling results.

Morocco‘s high gas prices and attractive fiscal terms continue to make it a compelling market for Predator, offering a potential fast-track to commercialization through Compressed Natural Gas (CNG) development.

How Is the Stock Market Reacting to Predator Oil & Gas’s Expansion?

Predator Oil & Gas Holdings Plc (LON: PRD) has experienced notable fluctuations in its stock performance, reflecting both investor optimism and market volatility. As of March 21, 2025, shares closed at 3.50 GBX, marking a 16.67% increase from the previous close of 3.00 GBX. However, the stock remains well below its 52-week high of 12.00 GBX, recorded in July 2024, and only slightly above its 52-week low of 2.50 GBX, reached in March 2025.

The company’s market capitalization stands at £23.32 million, with approximately 666.29 million shares in circulation. While recent operational developments have the potential to improve the company’s financial outlook, the stock continues to trade within a relatively volatile 8.80 GBX range.

Given these factors, a “Hold” rating appears to be the most prudent investment approach at this time. While Predator’s oil sales and acquisition strategy provide a strong foundation for future growth, the stock’s volatility suggests that investors should closely monitor operational progress in Trinidad and Morocco before considering further action.

How Does Predator’s Expansion Fit Into Its Long-Term Growth Strategy?

The acquisition of CEG Trinidad represents a major step in Predator Oil & Gas’s long-term strategy to build a diversified energy portfolio. The addition of Goudron, Icacos, and Inniss-Trinity fields, which collectively include 237 existing wells, offers significant workover opportunities and potential for wax treatment applications.

From a financial standpoint, the company remains in a strong position. Predator has access to approximately $55 million in consolidated tax losses, which can significantly enhance profitability as revenues grow. Additionally, cost savings from the MOU-5 well drilling programme have freed up discretionary capital, enabling Predator to explore further onshore asset acquisitions in Trinidad during 2025.

CEO Paul Griffiths has emphasized cash flow generation and balance sheet strength as core priorities for the company. By remaining debt-free, Predator is positioning itself to weather market uncertainties while capitalizing on new growth opportunities.

With a fully funded operational plan for 2025, the company is on track to expand its production base while maintaining financial discipline. As it advances its work in both Trinidad and Morocco, industry observers will be watching to see whether Predator’s strategic investments translate into sustained production growth and shareholder value.