Predator Oil & Gas Holdings PLC has provided an update on its MOU-5 drilling plans in Morocco. The company is targeting potential Jurassic gas for the Moroccan gas-to-power market. The operational planning for the MOU-5 well has been impacted by the requirement to enter the First Extension Period, with necessary statutory approvals. The company has taken steps to delay mobilization logistics for final equipment requirements and services to avoid incurring significant costs while waiting on regulatory documentation.
The MOU-5 well surface location had to be moved 277 meters to the northwest to avoid an irrigation system and water well used by local olive tree farms. 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.
The company will be evaluating the possibility of helium potential through MOU-5 and MOU-4 rigless well testing. The gas sample analyzed at 1395 meters MD KB in the Moulouya Fan in MOU-3 showed evidence for the presence of helium. 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 program.
Paul Griffiths, Executive Chairman of Predator, commented, "Whilst MOU-5 is focused 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."
The company is 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. Operational planning has now recommenced, with the regulatory process concluded, to complete the MOU-5 drilling program this year at the earliest opportunity.