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(Alliance News) - Predator Oil & Gas Holdings PLC on Monday said it has signed a preliminary agreement to secure a rig for undertaking drilling at the Guercif permit in Morocco.
Shares in Predator Oil were up 16% at 5.50 pence each in London.
The oil & gas explorer said unit Predator Gas Ventures Ltd has entered into a option agreement with Star Valley Drilling Ltd for procuring a rig to drill the Guercif permits I, II, III and IV.
Predator owns 75% and operates the Guercif permit in a joint venture with the Moroccan government oil and mines department, the Office National des Hydrocarbures et des Mines, which owns 25%.
The rig option is valid until January 31, 2020, and will allow for negotiation and execution of a legally binding rig contract, Predator Oil said. The agreement provides for a rig mobilisation between March 15 and April 30, 2020.
The company's initial drilling programme comprises drilling of the Moulouya-1 prospect to a depth of 2,000 metres. The drilling rig mobilisation and drilling operations are expected to take up to 30 days.
Predator Oil Chief Executive Paul Griffiths said: "This is another significant step in the company's strategy to develop shallow gas in Morocco adjacent to infrastructure as a greener contribution to reducing Morocco's carbon footprint. The company's gas prospects are located at the central core of this activity and the Guercif licence area offers us attractive running room with multiple prospects and leads to test all the gas plays currently being evaluated for drilling around us."
By Tapan Panchal; tapanpanchal@alliancenews.com
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