Analyst Comment6 May 2021 12:57
Predator Oil & Gas (PRD LN): MOU-1 well to commence drilling during June 2021, Morocco
Share Price: 14.9p, Market Cap: £37m
• PRD has confirmed that the MOU-1 well remains on schedule to commence drilling during June 2021 in the area of the Guercif Petroleum Agreement, comprising the Permits I, II, III and IV, located in the Guercif Basin in northern Morocco.
• The MOU-1 well location is c.250km due east of and on trend with the Rharb Basin, where shallow commercial gas production has been established for several years.
• Well spud during June is dependent upon the completion of drilling operations for three wells for another operator SDX Energy (SDX LN) in the Rharb Basin after which the Star Valley Rig 101 will be mobilised to Predator for the Guercif drilling.
• Drilling at MOU-1 is expected to take up to 20 days and subject to the results of wireline logging the well will be completed for rigless testing.
• The Company intends to release its Financial Statements for the period to 31 December 2020 prior to the commencement of the MOU-1 drilling operations together with an updated business development plan for Morocco.
• This plan will focus on building on the successful planning and imminent execution of the MOU-1 drilling programme as a means of leverage to assess additional value-accretive opportunities that we have identified.
Our take: PRD’s MOU-1 well represents another important valuation catalyst for the Company, and in a success case, could potentially de-risk up to 1,823Bcf of prospective High Estimate gross recoverable gas resources in the Tertiary and in the MOU-4 Prospect to provide the basis for a further drilling programme, including appraisal and exploration wells, when the Star Valley rig becomes available again later in 2021. Whilst the shares are up almost 3x YTD, we believe there remains further running room in the stock to come ahead of an active drilling campaign this year.
Sign In
Follow the stocks
