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Bouncing now? Confidence returned?

Some key phrases in this article, endorsed by PRD...

existence of a potential hydrocarbon reserve

This find, which was the main objective of the operation in the area

In the light of the discovery,

The confirmation of our initial geological concept

All sounds positive....

The British company Predator Oil & Gas has announced promising results in the exploration of the MOU-5 hydrocarbon field in Guercif, a city in the eastern region of Morocco.

The UK company confirmed the presence of excellent quality limestone and dune sand, revealing the existence of a potential hydrocarbon reserve to be taken into account, according to an official company statement.

This find, which was the main objective of the operation in the area, was located at a great depth due to the mobilised salt, according to the technical explanations. This condition increases the thickness of the impermeable layer necessary to harbour hydrocarbons.

It is worth noting the appearance of a significant layer of good quality 30-metre-deep sand located under the carbonate formation, something never seen before in the area.

For the moment, work has been halted to allow for further assessment of the seismic data and other technical aspects to be taken into account. In addition, helium was discovered, opening up new possibilities for exploration.

In the light of the discovery, the executive director of Predator Oil & Gas, Paul Griffiths, emphasised the relevance of the work carried out: ‘The results of the MOU-5 drilling revealed a new Jurassic geological trend never before explored in the Guercif basin. The confirmation of our initial geological concept now allows us to concentrate on the acquisition of new specific seismic data to clarify the potential at the top of the formation’.

It appears the market has written off the whole Jurassic concept and the rest of the Morocco licence, and is valuing PRD at just current T&T production and what has been proven in Mou3 i.e. shallow sands. In my view there is now very limited downside risk, and a lot of upside potential.

That's VOX Markets for those just seeing asterisks.

Current production is approx 150bopd to PRD. Netbacks in the range of $30 (usual) to$45 (no corporation tax). So should be $1.6m to $2.4m funds flow from operations to PRD? Minus costs. Got to be worth $5m or £4m. Divided in to 666m shares = 0.6p a share. Get T&T to 300bopd = 1.2p a share alone.

However the main value is in the gas proven at Mou3. I'm sure there is a proper figure given for this somewhere.

Indeed. Makes perfect sense not to have to pay for personnel if you don't need to.

Https://www.proactiveinvestors.co.uk/companies/news/1067983/predator-oil-gas-hit-by-profit-taking-following-strong-well-result-1067983.html

'strong well results'....

Hi INtheGo, sorry I wasn't clear. I was referring to the 7m sell on Friday, which looked like opportunistic profit taking on a part of their holding.

I think EVA sold on Friday as there was a quick profit to be made. Not sure how many holders have 4m shares to sell in one go. Given the process BRV highlighted that PG revealed after Mou1, it is quite likely that the ONHYM technical committee hasn't even met yet. I doubt PG is at liberty too say much until that happens.

Now only £18m. With producing oil in T&T, proven gas which has entered Mou3. Mad.

Possible reasons I can think of why the well has been suspended for re-entry (not plugged and abandoned) could be 1. to perforate a gas horizon, 2. to perforate the helium horizon 3. to wireline log 4. to deepen the well (although if you have found water I don't know why you would want to).

The rig has been stacked at site as the operator doesn't know where it is going next. So why move it?

Or the conspiracy theory is someone on site has indicated positivity, and there has been a concerted effort to get shares cheap.

Sorry, Part 2

Thursday - Mou3 perforated and flows free gas

Friday - AG agrees to buy gas upfront, and fund CNG operation.

Next week

Monday - PRD shares suspended due to multiple unsolicited offers to buy the entire share capital.

Tuesday - Auction of majors and supermajors, conducted by PG.

Wednesday - PG paraded in sedan chair through the Square Mile

Thursday - Peel Hunt announces several senior execs resign 'to spend more time with their families'.

RNS 7am tomorrow announcing analysis of Mou5 well data shows 80m of 20% poroperm 80% gas saturation over a 180km2 area, adding up to 2TCF.

RNS 7.30am tomorrow confirming that Exxon has agreed to farm-in to 25% for $100m upfront, $10m in back costs, and giving PRD a free carry to production.

RNS 8am tomorrow confirming Irish government has issued a successor licence for Corrib South and Vermillion has agreed to farm in for $10m upfront for 51%, granting a free carry to producton.

RNS 8.30am tomorrow confirming the wax treatment has worked in T&T and production is up to 1,000bopd.

RNS 9am tomorrow confirming Irish government has decided to rent an FSRU from PRD, paying a $10m mobilisation fee, and hefty transit fees.

RNS 9.30am tomorrow from PRD accepting a formal apology from the FCA, along with a substantial ex gratia payment.

Honest.

Remember the hooha after Mou1 when it was argued that it had to be bad news as the word 'pleased' was not used? By that same argument, this must be good news?!

Can you expand on Rockhopper please Rosso? Not familiar with the details.

I've filtered Cybertron for relentless baseless bashing and not engaging in a reasonable debate.

BlueGlow - Mou3 encountered high pressure gas in a drilling break and gas entered the wellbore. Mou4 is probably more analogous and the initial RNS for that just gave gross sands. Mou3 data came 2 weeks later. Mou 4 data 2 days later. It's too early to call.

"The presence of the Domerian carbonate has now been proven but 3D seismic will be necessary to characterize the carbonate reservoir in the area. "

Presumably you can't talk about a reservoir if there isn't one. So the fact that this is referenced seems to indicate there is a reservoir.