LONDON (Alliance News) - Predator Oil & Gas Holdings PLC on Tuesday said it has been awarded and has formally signed an eight-year Guercif petroleum licence in Morocco.
The Guercif petroleum agreement & association contract has been signed with the Moroccan Office National des Hydrocarbures et des Mines, acting on the behalf of the Moroccan state.
Predator provided a USD1.5 million bank guarantee, which is refundable on the completion of the minimum work programme set out in the terms of the licence.
Predator is taking a number of steps to begin drilling "as early as is practicable in 2019", as drilling can be conducted all year in that region of Morocco.
The licence is exclusive and comprises the Guercif permits one through four, which lie northwest of the Tendrara gas project and east of the producing gas fields of the Gharb Basin.
Predator will operate Guercif through its wholly owned Predator Gas Ventures Ltd subsidiary, with a 75% equity interest and ONHYM interest of 25%. ONHYM also has the right to "back-in" for as much as 25% equity by paying its share of forward costs.
Predator Chief Executive Paul Griffiths said: "Predator management is delighted to be working again with our excellent partner ONHYM to explore for gas in Morocco. We are convinced that the opportunity to potentially find gas in Guercif is so attractive that it warrants accelerating drilling activity to test the pre-drill model."
Shares in Predator closed up 5.0% at 8.40 pence on Tuesday.
Predator Oil (PRD)