Predator Oil & Gas Holdings PLC has provided an update on its rigless testing operations in Morocco. The company has commenced rigless testing and has been granted entry into the First Extension Period, allowing for the first use of new Sandjet and coiled tubing technology in Morocco. The rigless testing tools and chemicals required for operations have been imported into Morocco, with the remaining equipment arriving after customs clearance was granted on 2 August 2024.
The delay in customs clearance was beyond management's control, but the company has taken steps to manage mobilization logistics to ensure no significant standby costs were incurred. The ratification of Petroleum Agreement Amendment No. 4 extended the Initial Period of the Guercif Petroleum Agreement and corresponding Exploration Permits to 61 months until 5 June 2024. The company's rigless testing operations at MOU-3 commenced before 5 June 2024, and the testing program remains unchanged.
The company is introducing new rigless testing technology in the form of the Sandjet testing tools and the Baker Hughes coiled tubing unit. Positive results from MOU-3 could potentially transform rigless testing strategies and increase cost-effectiveness. The company does not intend to provide an operations schedule for testing at present as plans remain flexible and may be modified depending on initial test results and operational efficiencies.
Paul Griffiths, Executive Chairman of Predator, expressed frustration over the impact of amendments to the Initial Period of the Guercif Petroleum Agreement and the challenges of accessing limited well services and equipment due to global competition. However, entering the First Extension Period allows the company to re-establish its operational momentum and newsflow. The company's near-term ability to supply CNG to the Moroccan industry is more advanced than other possible options, and it remains debt-free, providing greater flexibility when considering different options, including M&A transactions and a partial divestment.
The company is grateful for the ongoing support and partnership of ONHYM through the regulatory process. A further operations update will follow once the MOU-3 rigless testing program is completed. For more information, visit the company's website at www.predatoroilandgas.com.