Predator Oil & Gas Holdings PLC Interim drilling update MOU-3 (4679C)

TIDMPRD

RNS Number : 4679C

Predator Oil & Gas Holdings PLC

13 June 2023

FOR IMMEDIATE RELEASE

13 June 2023

Predator Oil & Gas Holdings Plc / Index: LSE / Epic: PRD / Sector: Oil & Gas

LEI 213800L7QXFURBFLDS54

Predator Oil & Gas Holdings Plc

("Predator" or the "Company" and together with its subsidiaries the "Group")

Interim drilling update MOU-3

Highlights

   --    Significant shallow overpressured gas encountered 
   --    9 5/8 " casing safely set at 778.5 metres TVD MD 
   --    De-risks gas migration to six potential deeper targets 
   --    Drilling ahead on schedule and within budget 

Predator Oil & Gas Holdings Plc (LSE: PRD), the Jersey based Oil and Gas Company with near-term gas operations focussed on Morocco, is pleased to announce an interim drilling update for the MOU-3 well appraising the Moulouya Fan primary reservoir target for which contingent gas resources have been previously announced.

Operations update

Prior to setting 9 5/8 " casing an inflow of gas into the well was experienced. A substantial drilling break from 339 to 350 metres TVD KB was identified as the source of the gas. This correlated with an 11 metre-thick, unconsolidated, good quality sand with elevated background gas readings.

Mud weight was gradually increased to 1.25 S.G., above that required to balance hydrostatic pressure. to reduce the inflow of gas into the well. This gas zone is therefore significantly overpressured (122 psi overpressured) and likely to be supported by connectivity to gas volume to provide pressure support.

A second thin sand with a 2.42% formation gas show was encountered at 750 metres TVD MD.

The Company's experienced management team safely set 9 5/8 " casing at 764 metres TVD MD to protect the two new gas horizons, including the overpressured interval, that were not anticipated pre-drill based on offset wells MOU-1 and MOU-2. This was a difficult and challenging exercise for the drilling team but was achieved safely and without incident.

Drilling costs

Despite the challenges posed by unexpected overpressured shallow gas the pre-drill time-depth curve remains as planned and costs to date are within pre-drill working capital forecast estimates.

Technical update

The unexpected overpressured shallow gas occurs within a structural closure of up to 6 km(2)

mapped for the next drilling targets the Ma and TGB-6 horizons below the 9 5/8 " casing depth of 778.5 metres TVD MD. The 11 metre-thick overpressured gas interval is thicker than the sand thickness used for these intervals to estimate gas-in-place in a success case. 19 metres of net sand is the P50 thickness used to estimate gas-in-place for the Moulouya Fan primary objective in a success case.

The presence of overpressured gas trapped at shallow depths in a common structural closure above the next Ma and TGB-6 targets has de-risked vertical thermogenic gas charge from deeply buried source rocks generating dry gas.

Migration pathways can now be identified on seismic based on the early MOU-3 drilling results.

Six targets, including the Moulouya Fan primary objective, below the 9 5/8 " casing depth at 778.5 metres TVD MD are potentially in contact with the gas migration pathway to the shallow overpressured gas.

The potential gas migration pathway into the primary target in the MOU-4 structure could be proportionately de-risked.

Forward drilling plans

The Company is drilling ahead cautiously in 8 1/2 " hole to evaluate six targets, in addition to the newly identified two shallow zones.

A further drilling update will be given after the completion of logging operations within the timeframe guidance previously announced.

Testing programme

The positive initial shallow results to date from MOU-3 will need to be evaluated in the context of the sequence for rigless well testing and the intervals to be prioritised for potential gas flow in a success case. This exercise will only be completed once the MOU-3 well has been logged and the logs analysed to determine zones with the best gas deliverability characteristics. The priority will be to focus on potential for high deliverability gas rates if supported by wireline logging results.

Paul Griffiths, Executive Chairman of Predator Oil & Gas Holdings Plc commented :

"Unforeseen overpressured gas at shallow depths is always a potential hazard in a new poorly explored sedimentary basin. I would like to thank our experienced drilling management team, Lonny Baumgardner and Moyra Scott, for overcoming successfully; using their extensive drilling experience, what could have developed into a very serious operational challenge.

The presence of shallow overpressured gas with an effective sealing caprock has added to the identification of two new potential gas reservoirs that were not known about pre-drill.

Of even greater significance is that the overpressured gas has validated shallow trap integrity and identified a clear path for the migration of deep gas into the next six targets to be evaluated by MOU-3.

We are very encouraged by what we have found to date, which we believe at this early stage is material in the context of our CNG development plans but remain cautious as we drill ahead through a section that may or may not contain more overpressured gas.

However this is already an exciting beginning for our shareholders to our planned drilling and testing programme."

For further information visit www.predatoroilandgas.com

Follow the Company on twitter @PredatorOilGas.

This announcement contains inside information for the purposes of Article 7 of the Regulation (EU) No 596/2014 on market abuse

For more information please visit the Company's website at www.predatoroilandgas.com :

Enquiries:

 
 Predator Oil & Gas Holdings Plc                   Tel: [phone] 
  Paul Griffiths Executive Chairman                 [e-mail] 
  Lonny Baumgardner Managing Director 
 
 
   Fox-Davies Capital                                Tel [phone] 
   Jerry Keen                                        [e-mail] 
 
 
   Novum Securities Limited                          Tel: [phone] 
   David Coffman / Jon Belliss 
 
   Optiva Securities Limited                         Tel: [phone] 
   Christian Dennis 
 
 Flagstaff Strategic and Investor Communications   Tel: [phone] 
  Tim Thompson                                      [e-mail] 
  Mark Edwards 
  Fergus Mellon 
 

Notes to Editors:

Predator is operator of the Guercif Petroleum Agreement onshore Morocco which is prospective for Tertiary gas less than 10 kilometres from the Maghreb gas pipeline. The MOU-1 well drilled in 2021 is being prepared for a follow-up testing programme to coordinate with a further drilling programme to move the project to a CNG development stage.

Predator is seeking to further develop the remaining oil reserves of Trinidad's mature onshore oil fields through the application of CO2 EOR techniques and by sequestrating anthropogenic carbon dioxide.

Predator owns and operates exploration and appraisal assets in licensing options offshore Ireland, for which successor authorisations have been applied for, adjoining Vermilion's Corrib gas field in the Slyne Basin on the Atlantic Margin and east of the decommissioned Kinsale gas field in the Celtic Sea.

Predator has developed a Floating Storage and Regasification Project ("FSRUP") for the import of LNG and its regassification for Ireland and is also developing gas storage concepts to address security of gas supply and volatility in gas prices during times of peak gas demand.

The Company has a highly experienced management team with a proven track record in operations in the oil and gas industry.

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June 13, 2023 02:00 ET (06:00 GMT)