Predator Inks Extension for Rig in Morocco

Predator Oil & Gas Holdings Plc has signed a contract extension for the use of the Star Valley Rig 101 in Morocco.

The extension will facilitate, subject to regulatory approvals and consent, the drilling of the MOU-5 well to evaluate the 68-square-mile (177-square-kilometer) Jurassic structural closure in a crestal location, the limit of which was penetrated in MOU-4 in 2023.

Predator expects to drill MOU-5 between April 1 and May 31, targeting to avail of in-country well services that will remain after the completion of its rigless testing program, which will reduce mobilization costs for well equipment and services, the company said in a Monday announcement on the London Stock Exchange.

"We are delighted to have concluded the extension to our 2022 rig contract as it provides us with the perfect opportunity to accelerate the cost-effective and fully-funded drilling of a large Jurassic structure adjacent to our area of focus for rigless well testing”, Predator Executive Chairman Paul Griffiths said.

“A successful MOU-5 drilling, testing, appraisal and development program would potentially open up opportunities to exploit our onshore proximity to the Maghreb Gas Pipeline, which is located less than 10 kilometers from the MOU-5 drill site. This is a significant advantage for any future potential developer of a gas find as it will reduce capital infrastructure costs and the lead time to ‘First Gas’”, Griffiths continued.

Predator said it is fully funded to drill MOU-5 using currently uncommitted discretionary cash on the company's balance sheet, while it anticipates further drilling activity in 2024 to further evaluate the MOU-4 Jurassic prospect.

Predator is the operator of the Guercif Petroleum Agreement onshore Morocco which is prospective for Tertiary and Jurassic gas, according to the release. The current focus of the exploration and appraisal drilling program is located less than 6.2 miles (10 kilometers) from the Maghreb gas pipeline.

Advertisement - Scroll to continue Further, the MOU-1 well drilled in 2021 and the MOU-3 and MOU-4 wells drilled in 2023 have been completed for rigless testing in early 2024, the company said, adding that its near-term focus is on supplying compressed natural gas (CNG) to the Moroccan industrial market. Predator signed a collaboration agreement with Afriquia Gaz for potential CNG gas sales of up to 50 million cubic feet of gas per day, the release said.

“We also completed a very successful planning trip to Trinidad last month as a result of which we made significant progress towards establishing an operating and administrative presence”, Griffiths added. “We also identified additional workover opportunities on the Cory Moruga licence area and evaluated opportunities for re-perforating wells by deploying the Sandjet testing technology to pinpoint missed oil pays in some of the legacy wells”.

Predator said it is planning to apply carbon dioxide enhanced oil recovery techniques onshore Trinidad, which have the advantage of sequesterating anthropogenic carbon dioxide. The company’s acquisition of T-Rex Resources (Trinidad) Ltd. is a step in meeting the objective, as T-Rex holds the Cory Moruga Production License. Cory Moruga is a largely undeveloped near-virgin oil field of similar potential size to the nearby Moruga West and Inniss-Trinity mature oil fields.

“The Board remains committed to generating activity and news flow in the weeks and months ahead and are seeking potentially to take the company to another level through continued drilling success”, Griffiths concluded.

To contact the author, email rocky.teodoro@rigzone.com

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