Just a reminder - Oak Securites6 Mar 2025 16:46
Predator Oil & Gas
90 Jermyn Street | London | SW1Y 6JD
04 March 2025
12m
0
-65.6%
Corporate Broking
Jerry Keen
+44 207 468 7964
jerry.keen@oak-securities.com
PRD-GB Target
148p
Titanosaurus Spudded!
Predator Oil and Gas has announced that it has spudded the
MOU-5 exploration well which will probe the giant
Titanosaurus gas prospect in Morocco where it has a 75%
working interest. This is a significant structure with potential
P50 recoverable resources of 5.9 TCF of gas. Although this is a
relatively high risk exploration well, this could prove to be one
of the most significant wells drilled by the E & P sector in 2025.
Titanosaurus
Predator Oil and Gas has announced that has now spudded
the MOU-5 exploration well where it has a 75% working interest.
This well is looking to probe the giant Titanosaurus prospect
which could have P50 recoverable gas resources of 5.9 TCF (4.4
TCF net to Predator). The well is expected to take up to 12 days
to drill. The prospect is located a mere 3km from the Maghreb
Europe Gas trunkline which has significant spare capacity.
Through being onshore, if successful, this should prove to be a
simple cheap development and would have a massive impact
on shareholder value. To reflect the potential, we understand
that the company has received several unsolicited expressions
of interest for participation in any future drilling programmes
should Titanosaurus hold gas in line with pre-drill expectations.
Helium upside?
A gas sample taken at the MOU-3 well showed that there is the
potential of helium being present in the area which would
prove to be a very valuable bi-product given its high sales price
(of over US$400/mcf) compared to natural gas. Using the
global average concentration of 1.3%, this would imply 76.5 BCF
of recoverable helium in the P50 upside case. This would be a
world-class helium discovery.
MOU-3 Testing
After the drilling of the MOU-5 well, Predator will initially look to
focus on testing the shallow over-pressured gas in the “A” sand
in MOU-3. Early revenue generation is now preferred from its
reservoirs with the highest gas deliverability within its CNG
assets whilst it continues to appraise and explore the
substantial portfolio of additional structures. Net to the
company, 2C recoverable gas is 21.1 BCF representing
significant potential cash flow for the company. This would be
utilised in a CNG (Compressed Natural Gas) development
Valuation
We achieve a valuation through a RENAV (Risked Exploration
Net Asset Value) of 148p/share which is driven by the
exploration upside in Titanosaurus We are using a gas price of
US$7/mcf and a chance of success of 12% (which is below
Predator’s internal risking). Investors should be aware that this
is a relatively high risk well. For more details please see our
recent note (Focus on MOU-5 Morocco, Oct 2025).
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