Flagstaff27 Jun 2023 11:02
Predator Oil & Gas (PRD LN) 12.9p, Market Cap Β£55m: MOU-3 confirms sand development
Predator announced the completion of drilling and logging operations on the MOU-3 appraisal well at the Guercif Licence (75% WI), onshore Morocco.
The MOU-3 well has validated the pre-drill upside forecast for sand development in respect of the main Moulouya Fan target and a gross interval of 43m is set to be evaluated by a rigless well test.
The rig has moved to the MOU-4 well location and drilling operations are anticipated to commence shortly, targeting the same sequence of the Moulouya Fan and the deeper Jurassic carbonate potential.
Once the MOU-4 drilling is complete, results from all the wells drilled in 2023 will be quickly assessed and compared and a comprehensive and expanded rigless testing programme will then commence during July.
A positive update from the Company to confirm that the MOU-3 well has successfully been drilled and indicated thicker-than-expected sands in the Moulouya Fan primary reservoir target, as well as shallow gas potential from several secondary reservoir targets. Following drilling difficulties on the MOU-2 well, Predator will be relieved to get back on track with the revised plans to appraise the MOU-1 discovery from 2021, though we await more data to emerge from the drilling and testing programme. As such, we look forward to further operational updates from management and the impact on achieving early monetisation through either a CNG-based development or potentially a corporate transaction.
Best
Tim Thompson
Partner
Flagstaff