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PRD

18.64%
BAD

Predator Oil & Gas Reports Reduced Losses but Faces Cash Burn in Exploration Activities

Why we think this is bad

Despite reducing operating losses, Predator Oil & Gas continues to burn through cash without generating revenue. The company's cash balance has significantly decreased, which is concerning for an exploration company. While there are potential upsides from monetizing assets in Morocco and Trinidad, these are offset by challenging market conditions and the inherent risks of oil and gas exploration. The company's ability to fund future operations without further dilution remains uncertain.

Key Points

  • Operating loss reduced to £2,062,390 from £4,238,363
  • Cash balance decreased to £3,813,371 from £6,484,034
  • No debt reported
  • Raised £2,304,474 through share placement
  • Focus on monetizing assets in Morocco and Trinidad in 2025
  • Challenging market conditions and execution risks noted
  • Sufficient cash stated for next 12 months of operations
  • Market cap at £18.32M, shares trading near 52-week low

Summary

The oil and gas explorer reduced losses but faces cash burn as it progresses exploration activities in Morocco and Trinidad. Market challenges and execution risks persist.

Predator Oil & Gas Holdings Plc reported reduced operating losses of £2,062,390 for 2024, down from £4,238,363 in 2023. However, the company remains pre-revenue and saw its cash balance decrease to £3,813,371 from £6,484,034. The company is focusing on monetizing assets in Morocco and Trinidad in 2025, but faces challenging market conditions and execution risks. While the company states it has sufficient cash for the next 12 months, ongoing exploration activities suggest potential future funding needs. The company's market cap stands at £18.32M, with shares trading near the bottom of their 52-week range.

Key Dates

Throughout 2025
Focus on monetizing assets in Morocco and Trinidad
Q2 2025
Planned rigless testing program for MOU-3 well in Morocco
During 2026
Scheduled drilling of Snowcap-3 appraisal well in Trinidad
ANNUAL RESULTS