Predator Oil & Gas Holdings PLC Update on MOU-5 drilling plans & Helium potential

RNS Number : 6057Z

Predator Oil & Gas Holdings PLC

08 August 2024

 

FOR IMMEDIATE RELEASE

8 August 2024

 

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")

 

Morocco - Update on MOU-5 drilling plans

 

Predator Oil & Gas Holdings Plc (PRD), the Jersey-based Oil and Gas Company with near-term hydrocarbon operations focussed on Morocco and Trinidad announces an update on MOU-5 drilling plans.           

 

Highlights

 

·    MOU-5 well planning re-commenced upon ratification of entry into First Extension Period

 

·    High impact Jurassic well targeting gas-to-power in Morocco in a success case

 

·    Updated Independent Technical Report: net P50 Prospective Resources of 5.916 TCF

 

·    Review of the possibility of helium potential to be evaluated by MOU-5 and MOU-4 rigless well testing

 

MOU-5

Targeting potential Jurassic gas for the Moroccan gas-to-power market.

Operational planning for the MOU-5 well has been impacted, as for rigless well testing, by a requirement to enter the First Extension Period, with the necessary statutory approvals under the form of (i) a  Ministerial Order executed by the Ministry of Energy granting the entry into the First Extension Period.

The Company has been taking steps to delay  the mobilisation logistics for final equipment requirements and services to avoid incurring any significant costs whilst waiting on regulatory documentation.

There was a new requirement to move the MOU-5 well surface location 277 metres to the northwest to avoid an irrigation system and water well used by local olive tree farms.

As a result a new deviated well had to be programmed with a small amount of additional well inventory that was required to be imported and which would require customs clearance documentation.

The new location is also located in an area just east of the Moulouya River floodplain belonging to the public hydraulic domain of Oued Moulouya, Saka District, Guercif Province. A licence valid until 6 April 2025 has subsequently been granted to the Company to temporarily occupy the site for MOU-5 well operations.

An updated Independent Technical Report by Scorpion Geoscience Limited for the Jurassic MOU-5 structure gives net P50 upside Prospective Resources for gas of 5.916 TCF to the Company, with a conservative risking of 12% versus the Company's internal upside Chance of Success of 50%.

The MOU-5 drilling objectives remain as announced on 6 June 2024.

Operational planning has now re-commenced, with the regulatory process concluded, to complete the MOU-5 drilling programme this year at the earliest opportunity.

MOU-5 and MOU-4 well rigless testing to evaluate helium presence potential

Background to helium potential - MOU-3 gas sample

The gas sample analysed at 1395 metres MD KB in the Moulouya Fan in MOU-3, unlike any other shallower gas sample collected whilst drilling, showed evidence for the presence of helium. MOU-3 was drilled closed to significant faults extending down into basement rocks.

The Company will be undertaking a more detailed independent review of the potential for helium over the coming months, which will incorporate results from the MOU-4 rigless testing programme. Multispectral satellite spectroscopy analysis will also be undertaken over the Guercif licence area.

Based on the available data, the Company has decided to include a test for helium in the MOU-4 rigless testing programme and for a potential testing programme for MOU-5 if the well results are positive for gas. Testing operations will be coordinated to take place immediately after drilling  of the MOU-5 well, before the rig is demobilised to another location, in order to make cost-effective use of an on-site pressure-volume-temperature ("PVT"") laboratory to provide more accurate screening for the presence of potential helium gas.

Paul Griffiths, Executive Chairman of Predator, commented:

"Whilst MOU-5 is focussed on finding potential gas resources of a sufficient size to service the gas-to-power market in Morocco, the evaluation of the potential for helium presence would be an added value to the area development. Recent helium discoveries and newsflow is leading to a better understanding of how and where helium deposits might be generated. It is likely that this has been over-looked in the past where the focus has been on developing hydrocarbon potential in areas which potentially are also helium domains. We are cautious but excited regarding the potential for helium in Guercif. The Moulouya Fan and the carbonate reservoirs that may be encountered in MOU-5 have the ability to hold large volumes of gas and have effective seals."

For further information visit www.predatoroilandgas.com

 

Follow the Company on X @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 Paul Griffiths                Executive Chairman Lonny Baumgardner    Managing Director	Tel: [phone] [e-mail]
Novum Securities Limited David Coffman / Jon Belliss   Oak Securities Jerry Keen	Tel: [phone]     Tel: [phone] [e-mail]
Camarco - Financial PR Billy Clegg / Owen Roberts / Fergus Young	Tel: [phone] [e-mail]

 

Notes to Editors:   

 

Predator is an oil & gas company with a diversified portfolio of scaled assets including unique and highly prospective onshore Moroccan gas exposure, with multiple fully financed upcoming catalysts.

 

Predator has two high quality, scalable gas projects in Morocco with fast pace of commercialisation and blue sky potential. Guercif is a shallow CNG biogenic gas development with multiple traps and at least 4 separate reservoirs with recently drilled wells due to be flow tested. The Giant Jurassic Titanosaurus is a shallow thermogenic gas prospect evaluating 249m of potential gross reservoir thickness in a trap of 187 km2 for pipeline gas to power, with pipeline 2.5km from wellhead.   Moroccan gas prices are high and the fiscal terms are some of the best in the world.  Predator also has a diversified portfolio of assets across Ireland and Trinidad, which is a near-term revenue-generating project.

 

Predator has an experienced management team with particular knowledge in Moroccan sub surface and operations.  The team specialises in incorporating modern, proven technologies and processes from Canada and the US to provinces where the conventional technologies did not allow their hydrocarbon potential to be revealed.

 

Predator Oil & Gas Holdings plc is listed on London Stock Exchange's Main Market with a Standard Listing (symbol: PRD). For further information, visit www.predatoroilandgas.com

 

 

 

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