MOU 5 - Just a reminder27 Jul 2024 20:08
Jurassic MOU-5 well ("Titanosaurus structure")
Ā· The MOU-5 well will now commence drilling as soon as practical after entry into the First Extension Period following the unforeseen delay to the scheduling of the Star Valley rig 101 programme due to other commitments.
Ā· The Titanosaurus structure covers an area of up to 187 km2 and has up to 289 metres of vertical relief. Estimates of potential gas resources for this interval are as previously defined in the Independent Technical Report ("ITR") dated 24 January 2024 by Scorpion Geoscience Limited. These are likely to be increased based on new seismic inversion modelling to evaluate a potentially thickened reservoir sequence.
Ā· The prospective reservoir fairway is an Early Jurassic carbonate sequence and different from the sequences of sands for the Moulouya MOU-3 structure. The primary reservoir target and structural setting has never before been tested in Morocco.
Ā· The gas source is interpreted as thermogenic dry gas and not biogenic gas as found in the Moulouya structure.
Ā· Average well depths to penetrate the entire prospective interval are in the range 800 to 1100 metres Measured Depth. Estimated drilling time is 12 to 14 days.
Ā· The Company determines that there is a better than 50% chance of success based on the fact that MOU-5 is immediately updip from MOU-4, which helped define the target for MOU-5.
Ā· Potential development scenarios are being considered in the event of a successful outcome to drilling.
Ā· The MOU-5 pre-drill well location is located only 2.3 kilometres from a valve station on the Maghreb Gas Pipeline ("MGPL") to Europe.
Ā· A fixed pipeline development option is likely to be an attractive investment proposition if MOU-5 encounters material gas volumes and is subsequently tested at commercial flow rates.
Ā· Based on an anticipated dry gas reservoir, development costs are expected to be significantly reduced given the short length of new pipeline, 2.3 kilometres, necessary to connect to existing MGPL infrastructure with significant spare throughput capacity.
Ā· For the purposes of verifying the costs to construct a tie-in pipeline from the MOU-5 well location to the MGPL, the Company is planning a desk-top and site study based on pipeline capacities of 100, 300 and 500 million cf/day.
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