Predator Oil & Gas Holdings Plc (LSE:PRD) is significantly strengthening its position in the Caribbean through an ambitious acquisition from Challenger Energy, marking a pivotal step in its growth strategy. This strategic move not only enhances Predator’s immediate production capabilities but unlocks substantial synergies and accelerates high-impact exploration and development projects, creating an attractive proposition for investors seeking value-driven opportunities.
Predator, through its subsidiary Caribbean Rex Limited (CRL), jointly owned by T-Rex Resources (51%) and West Indian Energy Group Limited (49%), is acquiring Challenger Energy’s Trinidad subsidiary, Columbus Energy (St. Lucia) Limited. This acquisition encompasses the productive fields of Goudron, Inniss Trinity, and Icacos, currently delivering approximately 272 barrels of oil per day (bopd). These fields are under Enhanced Production Sharing Contracts with Heritage Petroleum and a mining licence granted by Trinidad’s Ministry of Energy and Energy Industries.
Strategically, this acquisition is primed to accelerate the highly anticipated drilling of the Snowcap-3 development and appraisal well, targeting significant oil reserves of approximately 1.4 million barrels (2C resources) and 12.91 million barrels (2P resources). Utilising Challenger Energy’s existing fixed assets, such as rigs, storage facilities, and operational equipment, Predator expects to achieve substantial cost savings and operational efficiencies across its Trinidad portfolio.
Predator’s management team brings deep expertise and familiarity, especially within the Inniss Trinity field, where previous CO2 Enhanced Oil Recovery (EOR) pilot projects have successfully boosted production. By integrating advanced geological insight and innovative SGN Technology for chemical wax treatment, Predator anticipates considerable production improvements across the acquired assets, substantially lifting output and reducing costs.
Furthermore, Predator’s established relationship with local operational experts and service providers facilitates swift and effective execution of targeted field operations, maximising returns while simultaneously achieving economies of scale. This approach negates the necessity for additional staffing, further controlling operational expenses and capitalising on consolidated tax benefits.
The transaction structure includes an initial deposit of $250,000 via issuance of Predator shares, followed by $750,000 payable on completion, partly in cash and partly through additional share issuance. Further deferred payments amounting to $750,000 are scheduled in three annual instalments until 2027. Predator will also assume liabilities amounting to approximately $4.25 million, initially managed by its partner, West Indian Energy Group Limited. Additional contingent payments of up to $2 million are tied to future production benchmarks, further aligning stakeholder interests towards enhanced operational performance.
This acquisition remains subject to approval from Heritage Petroleum and Challenger Energy shareholders, with completion targeted before April 2025. The transaction significantly bolsters Predator’s operational scale and financial strength, creating immediate value and substantial future upside.
Predator Oil & Gas Holdings Plc is a Jersey-based company focused on hydrocarbon exploration and production, primarily operating in Trinidad and Morocco, with a strong track record of enhancing oil recovery through strategic acquisitions and innovative technology application.
Challenger Energy Group Plc (LON:CGE) is an Atlantic-margin focused energy company, with production, development, appraisal, and exploration assets in the region. Challenger Energy’s primary assets are located in Uruguay, where the Company holds two high impact offshore exploration licences, totalling 19,000km2 (gross) and is partnered with Chevron on the AREA-OFF 1 block. Challenger Energy is quoted on the AIM market of the London Stock Exchange.
