Predator Oil & Gas Holdings PLC MOU-2 Drilling Update (7482N)

TIDMPRD

RNS Number : 7482N

Predator Oil & Gas Holdings PLC

25 January 2023

FOR IMMEDIATE RELEASE

25 January 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")

Highlights

   --    MOU-2 well suspended above Moulouya Fan target. 

-- Re-evaluation of drilling mud programme required for unexpected geological formation before re-entry is considered.

   --    Star Valley rig 101 will remain in place on location. 
   --    Extended MOU-1 perforating and testing programme to proceed. 

MOU-2 Drilling Update

Predator Oil & Gas Holdings Plc (LSE: PRD), the Jersey based Oil and Gas Company with near-term gas operations focussed on Morocco, announces an update on the drilling of the MOU-2 well in the Guercif Petroleum Agreement onshore Morocco.

The MOU-2 well has been suspended with an option to re-enter after reaching a depth of 1,260 metres Measured Depth.

Wireline logs were acquired from the 9 5/8 " casing point at 677 metres to 1,010 metres Measured Depth. The wireline logging tools were not able to log deeper than this depth due the presence of extremely sticky clays in a geological formation overlying the Moulouya Fan primary objective. Photographs of the logging tools covered in the formation mud have been uploaded to the Company's website at www.predatoroilandgas.com .

Below the logged interval a gross interval of 165 metres was penetrated with up to 100 metres of variable quality sand. A strip log through this interval has been uploaded to www.predatoroilandgas.com . Presence of significant thicknesses of sands demonstrate the potential sand source area feeding the Moulouya Fan below the debris flow.

This geological formation is interpreted to be a slumped basin margin debris-flow which has not been encountered in previous drilling in the area. The clays are particularly under-compacted and sticky due to very rapid deposition within the debris-flow. The interval presented a drilling challenge with very low rates of penetration.

Presence of significant thicknesses of sands in the debris-flow demonstrate the potential sand source area feeding the Moulouya Fan as mapped pre-drill.

Above the depth at which the well was suspended a detached transported block of the Moulouya Fan target may have been penetrated. A gross interval of 28 metres was estimated on the basis of the well site cutting samples and lithological log. 16 metres of potential reservoir was interpreted from drilling breaks. This can only be confirmed by wireline logging.

At 1260 metres Measured Depth a decision to suspend the well was taken as rates of penetration had dropped to below 1 meter/hour.

Forward Plan

The mud programme and its compatibility with the previously not seen sand-rich geological formation represented by the debris-flow will require re-evaluation to achieve a more cost effective rate of penetration.

The debris flow potentially forms a highly effective seal on the underlying Moulouya Fan. The thickness of the Moulouya Fan reservoir interval is expected to increase between MOU-1 and MOU-2 based on the sand content of the debris-flow penetrated in MOU-2 allowed an extrapolation across to MOU-1 to be made.

As a result of this the MOU-1 perforating and testing programme will be more focussed and extensive in the principal zone of interest to determine potential connectivity with the seismically defined area of the Moulouya Fan between MOU-1 and MOU-2 that is interpreted as potentially gas-bearing.

A re-entry and deepening of MOU-2 will be fully evaluated once a solution to optimising the drilling mud programme and mud properties has been completed.

Conclusion

The Moulouya Fan target has not been reached yet in MOU-2 as a consequence of the requirement to re-evaluate the drilling programme through the unexpected geological formation encountered in the well.

Until that re-evaluation is complete and a decision to re-enter MOU-2 has been taken pre-drill objectives remain unchanged as do potential estimates of gas resources.

The MOU-1 testing programme is being progressed and revised to gather as much information as possible on connectivity of potential gas sands over a wide area.

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

"MOU-2 has been an extremely challenging well to drill due to the presence of a particular geological formation not previously encountered.

The prudent and safer option was to suspend the well and leave it in a state to re-enter once a better understanding of the mud programme required to drill this particularly complex interval efficiently and cost-effectively.

Whilst this is not the result we wanted the pre-drill objectives and potential resources remain unchanged.

The Star Valley rig will remain in place over the well head."

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 
 
 Novum Securities Limited                          Tel: [phone] 
  David Coffman / Jon Belliss 
 
  Optiva Securities Limited                         Tel: [phone] 
  Christian Dennis, CEO 
  Ben Maitland, Corporate Finance                   Tel. [phone] 
 
 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 in prospects less than 10 kilometres from the Maghreb gas pipeline. The MOU-1 well has been completed and a follow-up testing programme is being finalised to coordinate with a further drilling programme.

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 to produce "greener" oil.

In addition, Predator also 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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January 25, 2023 02:00 ET (07:00 GMT)