 Predator in Talks for Gas Offtake on Moroccan Asset
by Rocky Teodoro|Rigzone Staff|Tuesday, October 10, 2023
Predator in Talks for Gas Offtake on Moroccan Asset
Predator Oil & Gas Holdings Plc has entered exploratory discussions to potentially sell its share of gas produced at the Guercif Compressed Natural Gas project.
Predator Oil & Gas Holdings Plc has entered exploratory discussions with an undisclosed group focused on the downstream energy business to potentially sell its share of gas produced at the Guercif Compressed Natural Gas (CNG) project wellhead, subject to an approved CNG development plan.
Jersey-based Predator is the operator of the Guercif Petroleum Agreement onshore Morocco, which is prospective for Tertiary gas less than 6.2 miles (10 kilometers) from the Maghreb gas pipeline.
Predator said in a news release that it plans to amend its rigless testing program, in a bid to accelerate the timing of negotiations for the sale of its share of gas, subject to an approved Declaration of Commerciality. The company will test the MOU-3 well first to establish the potential to maximize gas flow rates, targeting to set commercial parameters.
Due to a delay in the provision of a third-party service for its Sandjet testing program, Predator said it will instead test the MOU-3 and MOU-1 wells using conventional perforating guns. The rig-less testing for MOU-3 is expected to begin on or before October 16, the company said, adding that a follow-up Sandjet testing program will take place later “to test other reservoir intervals that are likely to respond better to the Sandjet perforating technique compared to conventional perforating guns”.
Predator said it is confident that the testing program will deliver the results necessary to progress commercial negotiations for the offtake of its share of future potential CNG gas from the wellhead.
Further, Predator said it is also in discussion with “several parties” regarding the financing of the CNG development. The company’s funds will be repurposed for follow-up appraisal drilling upon “achieving acceptable financial terms”, Predator added.
"Following the completion of drilling and prior to the execution of the rig-less testing program, the company has had a period of time to integrate the results from its MOU-1, MOU-2, MOU-3, and MOU-4 wells and mature its understanding of the structures holding possible gas accumulations”, Predator Executive Chairman Paul Griffiths said. “On this basis, the MOU-3 well and structure is now defined as the focal point for a potential CNG development hub. As a result, this well has been promoted to the first well in the rig-less testing program”.
“Good progress has been made on opening discussions for the offtake of gas on a larger scale than was previously envisaged by the ‘Proof of CNG Pilot Concept’ strategy’”, Griffiths added. “Financing options are being crystallized which will allow funds to be re-purposed for further appraisal drilling activity and value accretion through drilling success."
In September, Predator reported $2.9 million (GBP 2.36 million) in operating loss for the first half of 2023, compared to a loss of $738,000 (GBP 600,000) for the six months ended June 2022. The increase in operating loss is mostly attributable to increased drilling activity in Morocco, which is deemed vital to adding potential gas resources and ultimately creating shareholder value, it said in an earlier earnings statement.
Predator in the statement noted that CNG offers a simpler solution to deliver gas to dispersed industrial users compared to investing in pipeline infrastructure, which “requires more fixed capital investment, takes longer to construct due to requirements for environmental approvals and land permitting, and necessitates initially deploying more risk capital for drilling”. In contrast, CNG is a flexible and scalable development where additional capital expenditure can be funded organically and proportionally “given Morocco's very favorable fiscal regime”, Predator said. |
Biggest tool in the box=choke ?
Testing underway. |
Kq1,
Thank you. |
Increased my holding yesterday |
@Nametrade. Here is a downloadable paper by Bernini et al, 1994.
hxxps://www.researchgate.net/publication/46603074_The_Neogene_Taza-Guercif_Basin
Figs 4, 5 & 7 show the position of TAF-1X and the sequences penetrated. My view is that it was drilled in the wrong position. The structural trap is poor, and the Jurassic did not have any carbonate reef. Since MOU-NE is both updip and higher in altitude than TAF-1X, which had minor gas shows, I would expect that PRD will find substantially more gas there. The lowest point of MOU-NE had gas shows in excellent reservoir, so that confirms that a seal is in place. |
The force is strong here.
I saw a documentary on the Messiah once.
Instead of an old screwdriver there was a sandal.
Or was it a shoe?
Or a slipper?
It was none of these.
It was a sign.
Brian knows. Ask him.
Be careful. |
Wrtmf… sorry doing the school run.
I think it’s trying to say that the structure that the TAF-1x well is drilled in is a bigger structure than the current Jurassic structure that MOU4 has intersected…
Also that it might have better porosity/characteristics in other areas of the structure so it might perform better than expected..
just my initial take.. |
keith:
"Translation: TAF-1X was the deepest & second oldest well drilled at Guercif, by Phillips in 1979. The only one to go through the Jurassic & into the Triassic. Some gas shows indicate regional potential, but placement was poor - small structure, not carbonate reef, porosity only 9%. PRD will do a lot better with the next one."
--
that's ok nametrade |
So what is your interpretation nametrade? |
wrtmf....I disagree with your interpretation... |
GRH on X:
"ROB did some odd jobs today. They involved a variety of kit. The most effective of which was a VERY OLD Phillips headed screwdriver. It was the biggest one in the toolbox. It worked better than expected.
--
old screwdriver = perforating gun?
[i know keith has given diff interpretation] |
Hopefully yes.....on track to perf, test, prove and the share price zooms upwards as finally all the muppets are shut up once and for all. |
Well no RNS so must be on track! |
 not accurate
--
jimmy23
857 meter thick Jurassic carbonate does not tie in with the 224 meters of Jurassic carbonate previously identified on seismic by predator. The mou 4 well location is shallower than taf 1x well because it was uplifted by faulting not because it formed a continuous reservoir of 857 meters. Let’s remember only 2 meters of the Jurassic were reported as gas bearing at the bottom of the reservoir, so it’s all about what is above mou 4 not what is below it. Still exciting though.
--
keithoz
Jimmy is quite correct, I was just about to say the same. Unfortunately for this theory, TAF-1X was drilled into a separate structure and encountered different Jurassic strata, that had a porosity of only 9%. On the plus side, there were gas shows in TAF-1X, which was drilled some 50km southeast of MOU-4, indicating potential over a very wide area. If you are looking for some additional upside TCFs, I would also refer you to the original CPR that clearly stated ONHYM's view that beneath the Jurassic there is significant sub-salt (Triassic) potential, particularly to the east & southeast of Guercif town. See pp. 18-20 (pp. 192 - 194 of whole document) |
So 91 Tcft 1 Accurate ?2 Any good ? |
Yep 250k and 500k buys there |
500k 11p
after hours |
Rigless testing MOU-3 using conventional perforating guns is currently forecast to begin on or before 16 October 2023, assuming that the wireline logging unit is released from its present contract on or before 10 October 2023. The Company will provide an update if there is any change to this date. |
Piling in now. FOMO? |
Nice buying going on, share price up and anticipation building 😁😁 |
Dipstick wait and see! |
Wow - you really are that thick aren't you? Let me repeat. they have already said that THEY WILL NOT ANNOUNCE COMMENCEMENT ON OR BEFORE THE 16TH. Which part of that sentence are you struggling with? they will only announce a delay. So, if no announcement on or before the 16th..........guess what..........THEY WILL HAVE COMMENCED. Now do you understand? |
affc219.....cheers. |
As I have said dipstick I will be shocked if they don't announce commencement on or before the 16th!To my mind it is saying if any delays they will announce the delay!It doesn't and shouldn't rule out an announcement on commencement! |
Are you really that stupid dave444?
"The adjusted schedule for delivery of the Sandjet equipment is currently being put together by ECS and a further announcement will be made when this is finalised.."
Which they did do. In the latest RNS. Let me know which words you don't understand. |
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