Predator Oil & Gas acquires Challenger Energy's Trinidad assets to boost production and accelerate Snowcap-3 drilling

 () , a Jersey-based hydrocarbon explorer, announced the full acquisition of Challenger Energy's Trinidad and Tobago portfolio.

Predator has entered into a transaction with Challenger whereby  would acquire Challenger's Lucia-domiciled subsidiary Columbus Energy, which in turn holds various entities collectively representing all of 's business, producing assets, and operations in Trinidad and Tobago. Caribbean Rex (CRL), which is 51%-owned by Predator and 49%-owned by West Indian Energy, is making the acquisition to facilitate the consolidation of future tax losses if needed.

Predator is acquiring 3 producing fields in Trinidad - Goudron, Inniss Trinity, and Icacos, which are currently averaging 272 bopd of production. The assets are held under an Enhanced Production Sharing contract with Heritage Petroleum. Additionally, Icacos is under a Ministry of Energy and Energy Industries private mining licence.

The consideration consists of an initial US$250k deposit in  shares, already issued to . An additional US$750k is payable on completion - US$250k in cash and US$500k in  shares. Finally, three deferred unconditional payments worth US$750k will be issued in 3 instalments of US$250k on December 31, 2025, 2026, and 2027. Caribbean Rex will assume all liabilities and exposures of the business, which were agreed at US$4.25m.

Predator intends to use production revenues from the acquisitions to accelerate the drilling of its Snowcap-3 development well, targeting 2C 1.4M and 2P 12.91M barrels of oil. Predator expressed confidence that it can significantly increase the acquired assets' current average production of 272 bopd.

Paul Griffiths, CEO of Predator Oil & Gas commenting: "Today's announcement allows us to build the operational team, at no additional cost and funded by production revenues, to accelerate our plans to drill the high impact Snowcap-3 well, an appraisal to the Snowcap-1 oil discovery, targeting 2C and 2P oil resources of 1.4M and 12.91M barrels respectively"

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Predator continues to build its Trinidad operations. Following last month's 51%-acquisition of Caribbean Rex and its full interest in the Bonasse field,  has now added 3 significant producing assets to its Trinidad portfolio - the  Goudron, Inniss Trinity, and Icacos fields. The 3 fields are currently outputting 272 bopd, with material upside available as  plans to increase production significantly over the next 12 months.

To raise production, Predator will apply knowledge from its previous involvement in Inniss-Trinity.  previously worked on the field as part of its CO2 EOR pilot project, which doubled oil production in a pilot CO2 EOR well. Several opportunities to increase conventional production were identified during this involvement. Additionally,  plans to apply its patented  SGN Technology chemical wax treatment, which can substantially lower oil viscosities and improve recovery rates.  also plans to integrate the acquired management structure to lower costs.

Boosting production and revenues will support 's Snowcap-3 development and appraisal well, targeting 2C oil resources of 1.4M barrels in the reservoir being restored to production by the Snowcap-1 well workover, and 2P oil resources of 12.91M barrels from deeper reservoirs equivalent to those in the adjacent Moruga West field formerly operated by BP.

Overall, the acquisition should result in more high-value drilling and workover opportunities for Predator in Trinidad. As mentioned,  has already identified several high-value conventional targets for workover. Simultaneously, the company is focused on its Morocco operations where drilling at the Titanosaurus MOU-5 site is scheduled to begin by March 3, 2025.

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