Predator Oil & Gas Holdings PLC has released an operations update and forward work programme for 2024. The company is set to commence Phase 1 Guercif rigless well testing before 25 January, with Phase 2 using Sandjet scheduled for February/March. Additionally, a site visit to Cory Moruga is scheduled for 22 - 26 January to begin planning for well workovers. The Cory Moruga Independent Technical Report indicates P50 and P90 Contingent and Prospective gross recoverable resources of 14.31 and 21.41 million barrels, respectively.
The company forecasts that H1 2024 well workovers will generate a gross net operating profit of US$ 3.1 million in 12 months from H2 2024 to H1 2025. Furthermore, the Cory Moruga Field Development Plan for P90 Contingent and Prospective gross recoverable resources of 9.13 million barrels gives a gross US$202.12 million undiscounted net operating profit (NPV@10% US$85.14 million with IRR 240.9%). Well planning for a discretionary high-impact Jurassic well has commenced for April/May drilling, and the company is fully funded for all 2024 firm commitments.
Predator Oil & Gas Holdings PLC also highlights the potential for gas monetization and Cory Moruga production revenues to fund discretionary drilling, while maintaining low corporate and operating overhead despite an increase in activity.
The company is making a site visit to Trinidad in the week of 22 January 2024 to meet with local well services contractors and to identify workover rigs to prepare for implementing the Snowcap-1 and Snowcap-2ST1 well re-entries. Subject to wireline well surveys to confirm borehole conditions, a workover and wax treatment will be performed in H1 2024 on Snowcap-1 for the Herrera #8 Sand. A workover and wax treatment will also be performed on Snowcap-2ST1 for the Herrera #7 and #8 Sands. Wax treatment and gas management will be critical to reducing the decline rates.
The total estimated gross costs for the workovers and for re-establishing Cory Moruga oil production facilities are forecast by the company to be £500,000. The company is also in discussions to acquire the remaining 16.2% interest in Cory Moruga for an overriding royalty.
The Independent Technical Report by Scorpion Geoscience Ltd. for the Cory Moruga block and resource potential of the Snowcap Discovery indicates that the field size is similar to nearby mature producing oil fields at Moruga West and Inniss-Trinity. The report also discusses wax suppression, pressure maintenance, and geological risks associated with the Prospective Resources and the Herrera #8 Sand Contingent Resources.
Overall, Predator Oil & Gas Holdings PLC is making significant strides in its operations and has a well-defined forward work programme for 2024, with a focus on well testing, workovers, and potential gas monetization.