London-listed Predator Oil & Gas (AIM:PRD) told investors in an update on Tuesday that it is currently in an “excellent position” to take advantage of any acquisition opportunities that may arise.
With its recent £3.56m equity fundraise and “very low” corporate overheads, Predator said it is “very well-placed” to ride out the ongoing worldwide situation with regard to the coronavirus.
The Jersey-based oil and gas firm said projects are “in good order” and that it holds a strong net cash position which it will use to further enhance its existing portfolio.
The company highlighted that its Enhanced Oil Recovery project in Trinidad is forecast to be profitable, even at a lower oil price of WTI 20 $/brl, with revenues anticipated in due course.
Shares in Predator Oil & Gas were trading 7.14% higher at 1.5p during Tuesday trading.
Predator says it has developed a ‘viable template’ for CO2 EOR operations and will prepare to expand this within the Inniss-Trinity field and to other potentially attractive fields in Trinidad.
The group says it makes ‘commercial sense’ to increase potential cash flow from these operations by gradually upscaling - with very low capital commitments - as the markets begin to strengthen and coronavirus is addressed.
Meanwhile, Predator’s rig earmarked for drilling in the Guercif prospect in Morocco, which aims to exploit ‘a very attractive gas pricing scenario’, is allowing the group to accumulate additional cash prior to drilling.
The group's target at the site is set to be "drill-ready" to move to execute the drilling programme at the appropriate time following the lifting of coronavirus restrictions.
Predator said it is still planning to issue its 2019 Annual Accounts by 30 April 2020 and is currently working with its auditors in order to meet this schedule.
Follow News & Updates from Predator Oil & Gas here: