RE: 1p to buy..very cheap.8 Aug 2024 13:12
Guercif Licence (“Guercif”) is located onshore Morocco and comprises four Exploration Permits, I, II, III and IV. It covers an area of 7,269 km² and lies approximately 250 kilometres due east of and on trend with the Rharb Basin where shallow gas production has been established by SDX Energy Plc for several years. Guercif also lies approximately 180 kilometres due north-west of Tendrara where deep discovered gas is currently being appraised and potentially developed by Sound Energy Plc.
Guercif Licence Signing Ceremony
Watch This - Rig up in 4 hours!
Courtesy Star Valley Drilling
Video Player
00:00
00:21
Licence Terms and Work Programme
The Licence equity holders are Predator Gas Ventures Ltd., a wholly-owned subsidiary of Predator, 75% (operator) and ONHYM, the State oil company, 25%. ONHYM is carried through exploration but funds its pro-rata share of all costs upon a Declaration of Commerciality.
The Licence is for 8 years and is split into an Initial Period of 30 months; a First Extension Period of 36 months duration; and a Second Extension Period also of 30 months. After each Licence Period there is an opportunity to withdraw from the Licence without entering the next Licence Period.
In the Initial Period, the work programme comprises 250 kilometres of 2D seismic reprocessing and AVO analysis and the drilling of one well to a minimum depth of 2,000 metres. Desk-top geological and gas marketing studies will also be carried out. Seismic reprocessing costs are estimated to be US$150,000 and well costs US$2,000,000.
The fiscal terms in Morocco are restricted to a 5% State royalty for gas, applicable after the first 10.6 BCF of net production to the operator, and corporation tax charged at 31%. However, there is a 10-year “holiday” before corporation tax will be charged and any unused tax losses can be offset against the tax due. There are no signature bonuses but production bonuses in the form of cash payments exist with a maximum one-off payment of US$5,000,000 on production greater than 30,000 BOE/day. A discovery bonus of US$1,000,000 is also payable.
Gas prices in Morocco are currently higher than UK National Balancing Point (NPB) prices for domestic delivery. Any future gas exports will be priced at NPB prices.
Exploration History
Guercif has been very lightly explored with only 4 deep exploration wells drilled by Elf in 1972 (GRF-1), Phillips in 1979 (TAF-1X), ONAREP (the forerunner of ONHYM) in 1985 and 1986 (MSD-1 and KDH-1) and 2 shallow stratigraphic wells drilled by BRPM for coal exploration in the 1950’s.
TransAtlantic re-entered, logged and tested the MSD-1 well, originally drilled in 1985, in 2008 but the logging and testing failed to establish the presence of hydrocarbons in the Jurassic.
The seismic inventory includes 3,291 kilometres of 2D seismic data acquired between 1968 and 2003 (including a new 300-kilometre ONAREP 2D seismic survey acquired in 2003), which were repro
Sign In
Follow the stocks
