Predator Oil & Gas Acquires Challenger Energy's Trinidad Assets
Why we think this is good
The acquisition of Challenger Energy's Trinidad assets is a positive strategic move for Predator Oil & Gas, as it supports the company's plans to drill the high-impact Snowcap-3 well and potentially increase production and revenue. The synergies and cost savings from utilizing the existing fixed assets and operational staff are also beneficial for Predator's financial performance. However, the significant liabilities and potential exposures associated with the acquisition, as well as the uncertainty around the Heritage Petroleum approval, introduce some risks that could impact the company's valuation and share price.
Key Points
- Acquisition of Challenger Energy's Trinidad and Tobago business, assets and operations
- Acquisition will support and accelerate plans to drill high-impact Snowcap-3 well
- Predator confident it can increase current average production of 272 bopd from acquired assets
- Acquisition consideration includes initial deposit, completion payment, deferred payments, and contingent payments based on increased production
Summary
Predator Oil & Gas Holdings Plc (PRD) has announced the acquisition of Challenger Energy's Trinidad and Tobago business, assets and operations. The acquisition will support and accelerate Predator's plans to drill the high-impact Snowcap-3 well, targeting 2C oil resources of 1.4M barrels and 2P oil resources of 12.91M barrels. Predator is confident it can increase the current average production of 272 bopd from the acquired assets. The acquisition consideration includes an initial deposit, completion payment, deferred payments, and contingent payments based on increased production.