From Malcy today30 Jun 2020 14:07
Predator Oil & Gas
A Morocco update from PRD this morning in which they say that the State of Emergency has been extended until July 10th but with some easing possible before then. The rig for Guercif drilling remains stacked in country and excitement regarding the first well is mounting as NuTech analysis has identified a new additional target for the first exploration well. The target is in the upper part of the interval between 1,386-1,413m TVD KB and will present an opportunity to evaluate the western edge of a newly interpreted Tertiary fan complex over 20-25km².
The company is also carrying out a significant gas market study to review the technical feasibility of transporting gas as CNG from Guercif to sites of industrial production. Potential market size and Indicative costs of CNG transportation will be related to the specific Moroccan infrastructure environment, which includes a railroad passing through Guercif linking Guercif to Morocco’s industrial and commercial centres.
This study will assess the potential for early monetisation of gas discovered at Guercif. Other options to develop an integrated gas business in Morocco are being assessed for regulatory, technical and commercial feasibility, including subsurface gas storage at Guercif in the context of security of energy supply and a Floating Storage and Regassification Unit (“FRSU”). Presence of gas infrastructure linking Morocco with Europe and the demand for both gas-to-power and to replace coal and oil to reduce carbon emissions is a scenario the Company is very familiar with in Ireland.
Paul Griffiths, Chief Executive of Predator, commented:
“Guercif is pivotal to the Company in terms of developing a gas business utilising the excellent infrastructure that exists in Morocco. We are ready to progress the drilling programme as soon as COVID-19 public health restrictions are eased to facilitate the recommencement of safe operations. We have used lockdown to define additional Guercif prospectivity and to review potential LNG markets suitable for FSRU penetration in those countries where management have a long history of experience and understanding. The business environment is changing, and we need to adapt to change and use this experience and understanding to maximise our business development opportunities. Post COVID-19 will require significant coordinated effort to re-build economies and natural gas will be an inevitable and pragmatic contributor to this evolutionary process, whilst providing jobs, government taxes and security of flexible energy supply necessary for inward investment.”
It strikes me that during the lockdown and as the management has had the opportunity to consider all options for Guercif they have looked at every possible scenario for marketing any gas that they might find. Although the first choice would be using the Maghreb pipeline, only 8 km away and a discovery using this route would indeed be a game changer.
It’s very unusual for a CEO
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