A small UK oil and gas company is preparing for a key drilling programme in Morocco next year, even as its losses widened and its shares fell after its latest results. Predator Oil & Gas reported pre-tax losses of about $3.8m in 2025, up from roughly $2.7m the year before. It also posted its first ever revenue, about $1.2m, but that was not enough to calm investors.
Its shares dropped 14% to 3.50p after the update.
The company said 2025 was a “transitional” year as it shifts focus towards drilling in Morocco.
Morocco is now the main focus
Predator is preparing for drilling in the Guercif Basin in 2026. The area is considered underexplored but potentially rich in gas.
Its assets are close to the Maghreb-Europe Gas Pipeline, which could make it easier to sell gas if discoveries are made.
The company is effectively betting that Morocco could turn it from a small speculative firm into a producing energy player.
Investors remain cautious
Some market watchers say the share fall reflects “drilling fatigue” among retail investors after a long period without major discoveries.
Predator says it is focusing on what it calls “monetizing the molecule”, while keeping costs low and staying debt free.
It is also leaning on other assets in Trinidad and Tobago to help fund operations while it waits for results in Morocco.
Bigger interest in Moroccan gas
Morocco has become more attractive to small oil and gas explorers due to relatively flexible investment rules and a push to reduce energy imports.
If drilling in the Guercif Basin is successful, it could draw interest from larger energy companies looking for new reserves in stable countries.
What happens next
The focus now is on whether rigs arrive on schedule in 2026 and whether the company secures final approvals for drilling.
For now, Predator remains a high risk, high reward play. The coming year will decide whether its Morocco strategy pays off or becomes another costly attempt in the desert.
