Member Info for Jimmy23

SDX drilled the lnb 1 well in 2018 which encountered a new geological horizon . This well is located in chariots onshore acreage.

The SDX rns stated.

The LNB-1 well was drilled to a total depth of 1861 meters. The primary target was in the Lafkerena sequence, where 300 meters of gas bearing horizons were encountered in a significantly over-pressured section. The mudlog obtained through the section showed elevated gas readings of more than 20% with multiple sections above 50%. This section could not be logged using conventional methods due to hole conditions.

The gas shows in this section contained heavier hydrocarbon components throughout, which is indicative of a thermogenic hydrocarbon source rock. These types of shows have not been seen to date in other parts of the basin and indicate that a new petroleum system has been encountered in this area. Based on the mudlog shows, reservoir quality information from the formation cuttings, analogue fields (outside the Gharb basin), and the size of the feature as currently mapped, a preliminary recoverable gas volume has been estimated by management. This results in an un-risked mid-case volume of 10.2 Bscf of conventional natural gas and 55 thousand barrels of condensate. This is significantly larger than the traps typically encountered in Sebou and would exceed the size required to justify development and connection to the existing infrastructure in the Sebou area..

Jimmy

I expect that Afriquia will provide a loan along with an offtake contract.

Prd is finally going to flow test mou 1 and mou 3.

The testing of the mou A sand in both wells is important because predator have indicated that the sands can be seen on seismic, the depth of the mou A sand in mou 1 and 3 are at approcimately the same depth , so without the saddle between mou 1 and 3 that’s in the mou fan reservoir, furthermore, the mou A sand is reported to be in an area of 59km2 so 10 meters of reservoir over such an area will add a few hundred bcf to reserves.

The outline deal with Afriquia will move the cost of the cng trailers to the gas buyer, or a lease thereby reducing the capex to get to cashflow, which may be financed by a loan note as previously demonstrated with sound energy.

Getting to positive cashflow , without dilution , so that cashflow can be used to drill out the area for gas to power sales is the way to go.

Looking forward to the flow test results , at long last.

Jimmy

Private Tesla,

I think the relevant part of your post is that onhym now requires prd to test the wells before the licence is renewed in February.

Prd have raised funds on 3 occasions to test, so they just have to test otherwise they will have raised funds on false pretences, so would need to check their directors liability insurance.

I am sure they will test, and they have committed to do it,again, but now it has a licence obligation so they have to do it. But why wait till January, just do it now, they have the funds and the expertise to do it, so why wait.

Jimmy

Finally we are going to get a flow test, after 30 months since the completion of mou 1 and three fundraising to start the process, and if we don’t do the flow tests and file the well reports by 5th February then the renewal of the licence conditions will not have been met.

Seems like onhym want this done asap as well.

There will be approximately 25 meters of reservoir in total from three wells to be tested. The previously advised reservoir sections totaled 150 meters so what’s going on.

The agreement with gas offtake partner has a limit of 50 mmcf per day for cng, but that’s unlikely to be achieved as the market needs to grow to accolade such volumes. 25 meters of net reservoir should generate circ 28 to 30 mmcf per day, more than enough to get into strong production cashflow.

However, prd announced the start of an environmental impact study which is a pre requested for a concession licence, this took chariot 12 months to complete and get approval. During that time prd has to get the funds to build the cng compression facilities and it expects to be able generate funds from the production licence in T and T to do that.

I don’t fully understand Tand T economics and have not studied it in depth, so I am assuming there is logic to that.

At the heart of the valuation problem with prd is that the nuetech report states that many of the reservoirs are probably gas, not definitive.

Now if prd had paid the funds for sidewall cores and gas and fluid sampling of reservoirs then such ambiguity could have been addressed earlier. So now 30 months later we will get flow test data from the wells and hopefully this can be used re calibrate the electric logs and hopefully then have an independent expert to confirm the 150 meters of reservoir that prd have previously suggested are gas bearing.

So sometime next year, hopefully in h1, prd will drill three wells, two of which are to drill the shallow sands with high gas readings in mou 3 , oh why did they not pay the money and log such reservoirs, now they have to drill two wells , a false economy. Plus the much anticipated jurrasic which reported 2 meters of gas but is being evaluated for oil source rock, I am confused.

The guercif licence area is only 4 km from a major pipeline, prd should flow test the remaining reservoirs by sand jet asap and proceed to plan for gas to power gas sales for higher volumes.

Jimmy

The chariot onshore morocco exploration program is due to start early 2024. Chariot stated that the onshore prospects would help derisk those offshore. It did not say how.

We know that the very large gas prospects are located in the offshore rissana licences and that these are in a deeper geological horizon of the sub nappe. In addition, there is a large, but not quantified , sub nappe prospect below anchois called Crevette.

The onshore licence includes a well drilled by SDX in 2018 called lnb1 which encountered 300 meters of sand reservoirs with highly elevated gas readings. Due to poor well conditions this deeper reservoir was not logged.

The location of that well is shown on page 6 of the exploration video presentation. In addition, the lnb 1 well is shown is having proven reservoir below the gas water contact , up dip of which is the onshore gaufrette prospect with potential gas volumes of 28bcf . Page 6 of the presentation mentions 3 prospect areas and assigns recoverable gas volumes to them, but it also shows a fourth prospect type, in grey, which is not described on page 6, however on page 7 , a fourth prospect is described as a sub nappe prospect with an analogue offshore called crevette, which is below anchois. The onshore sub nappe prospect is shown as being directly below the gaufrette prospect.

An onshore well could target both prospects gaufrette and its sub nappe prospect below it and establish if the 300 meters of reservoir found downdip in lnb1 is indeed in the sub nappe, and hence derisk the giant crevette prospect below anchois.

Not long to wait.

Very frustrating no news on farm out.

Jimmy

Ibiza,

The data at this stage does not yet support £5 price, more flow testing, drill Jurassic and drill shallow mou 3a , one step at a time.

Jimmy

Some big buys in the last few trading minutes at 11 p plus.

Looking good.

Jimmy

Hi page of cups.

May I suggest you familiarise yourself with SDX energy who explore for and produce gas in Morocco

In particular, I wish to draw your attention to the xx rns of 5th oct that was to provide finance by way of prepayment of gas of $1.9 million on 5th oct 2023 . The flow test from the well was completed and announced on 31st October.

I believe prd may be trying to do something similar.

Jimmy

Thanks to GRH for his honesty and commitment regarding his investment on Prd.

Hopefully pg will now deliver a great flow test to justify the commitment of such shareholders, without further delay.

Jimmy

The Cpr confirms widespread gas source rocks in the licence area and a geothermal gradient of 35c per km which will generate huge volumes of gas. It also reports very effective sealing rocks in the Miocene containing blue marls and gypsum.

What we know we have extensive reservoirs, which predator report can be seen as widespread on seismic.

What we don’t know.

1. Gas water contacts.

2. Gas pressure readings in each reservoir , for completion design

3. Gas composition.

4. Permeability of each reservoir, which can be implied from flow rates.

5. Flow rates of gas and any associated water from each reservoir.

6. The reservoir connectivity between wells.

These are all critical for a commercial declaration and the granting of a concession production licence.

Predator have chosen to have lower well costs by not taking sidewall cores, reservoir pressure readings and gas and water samples, as they do offshore, instead it’s looking to get this information from flow testing.

It has the money, it’s identified potential buyers of gas at the wellhead , just got to get on with it and do it now.

Jimmy

On 6th oct prd announced planned flow testing and the start of commercial negotiations to sell gas at the wellhead.

We now know that they are waiting on a heads of terms for such gas sales, and we do not know when gas flow testing will start.

It seems that SDX has set a precedent for getting funds from gas purchaser ahead of flow testing, and this took 6 weeks from announcement of negotiations to receiving funds followed by flow test results short,y thereafter.

Maybe that’s what’s going on

Jimmy

The rns announcing the completion of drilling of mou 4 stated that a Jurassic carbonate intersection of 1139 to 1143 is to be tested, but did not say when.

Does anyone know the depth to which mou 4 was drilled as this was not stated, when it’s normal practice to say so. Why was it not stated?

Jimmy

I would be truly shocked if there was no flow tests results by year end, they have raised funds three times for flow testing.

Any farm out or third party offtake contracts will require a flow test , so I cannot see any reason not to flow test, particularly since they have the funds.

Jimmy

But when is flow test rns time, that’s the question. Can ROB answer that?

Jimmy

I am also anxiously waiting on flow test results, but pleased that Keith’s rns date has passed without an Rns, as otherwise punters would say he had inside knowledge.

J

My reading of the latest announcements is that the Irish state will lease its own floating storage gas unit to be moored in port. So mag mell looks like it’s finished.

However, that report did also note the benefit of having an Irish gas supply , so maybe the minister might renew the corrib licence which was applied for all those years ago.

J

Ibiza ,

Most of the imported gas is used for power generation , and Morocco is increasing is building more gas powered generators and is expected to convert a power station in kenitra from using fuel oil to gas also.

Plenty of local demand, nearly all of which is dependant on lng imported to Spain and piped to Morocco.

Jimmy

Louis,

Have you read page 35 of the experts report in the recent prospectus, do you disagree with it and if so why?

Jimmy

The mou 1 well has identified a new reservoir section for flow testing of 300 meters gross with a net interval of 45 meters with a low gas saturation % for testing.

This interval has not previously been included in contingent resources. However, a 45 meter interval flowing at the rharb basin average of 1.1 mmcf per meter per day , would produce nearly 50 mmcf per day,

See page 10, of

https://wp-predatoroilandgas-2020.s3.eu-west-2.amazonaws.com/media/2023/05/Proactive-Presentation-18-May-2023-FINAL.pdf

That would be a real barn burner as they say in the USA.

Jimmy

Thanks to Keith for his insight.

One factor that is very apparent from all of the recent rns announcements is that there is no definitive declaration that gas has indeed been found. There are mentions of reservoir intersections, elevated background gas readings but no statement saying x meters of gas bearing reservoirs were encountered . We know that no gas sampling of reservoirs has occurred which would validate electric log readings or calibrate the logs for reservoirs from which gas has been definitively sampled.

It’s understood that onhym will not allow a declaration of gas without definitive proof.

The explanation for the is situation is reported in the experts report in the recent prospectus, , page 35, which describes how a nearby well in the rharb basin with poor electric log quality readings and a 35 % gas saturation , usually considered to be water bearing, did in fact flow

gas.

The experts report endorses the nuetech log analysis.

Obviously , the definitive proof is the flow testing, and any commercial discussions with either offtake purchasers or farm in partners will benefit from a strong flow test.

The difficulty of log interpretation in these reservoirs is also validated by chariot results for anchois 2 well which initially announced 100 meters of net pay reservoir which was later upgraded several months later to 150 meters of net pay.

I will post later on a large reservoir section in mou 1 with gas saturations of 35% , not previously included in proven gas volumes.

This is important.

Jimmy