Size of the prize ... Guercif19 Nov 2020 23:43
A little reminder for those who may have read it in spring 2019 , or an eye opener for newer investors ..
Predator Oil & Gas Holdings Plc (PRD), the Jersey-based Oil and Gas Company, with a portfolio of attractive upstream gas assets adjacent to European gas infrastructure entry points, is pleased to provide a prospective resources update on the Guercif Permits I, II, III and IV ("Guercif") onshore Morocco. Predator (75%) operates Guercif in joint venture with the Office National des Hydrocarbures et des Mines ("ONHYM") acting on behalf of the State (25%).
The Guercif area is located approximately 200 kilometres east of the producing Rharb Basin gas fields and approximately 100 kilometres northwest of the Tendrara gas project.
Following an analysis of existing 2D seismic and well data in conjunction with an appraisal of the gas market and the Company's project economics, Predator retained SLR to carry out a third party prospective resources audit (CPR) of the potential in-place hydrocarbons initially in the first tier Moulouya Prospect and the Triassic Prospect, in the Miocene Tortonian and Triassic TAGI reservoirs respectively.
SLR has reported that the Miocene Tortonian reservoir in the Moulouya Prospect has a Best Estimate gross gas in place of 646 BCF with recoverable Best Estimate prospective resources of 320 BCF net to Predator using only a 66% recovery factor (High Estimate 659 BCF net to Predator based on higher in-place gas).
Unrisked NPV per BCF of Miocene discovered gas is estimated by SLR to be US$1.95 million, generating an unrisked estimated NPV for the Best Estimate net Predator gas resources of US$624 million.
For the sub-salt TAGI reservoir in the Triassic Prospect, SLR has a Best Estimate gross gas in place of 515 BCF with recoverable Best Estimate prospective resources of 155 BCF net to Predator using only a 40% recovery factor (High Estimate 283 BCF net to Predator based on higher in-place gas).
Unrisked NPV per BCF of Triassic discovered gas is estimated by SLR to be US$1.34 million generating an unrisked estimated NPV for the Best Estimate net Predator gas resources of US$207.7 million.
The SLR total combined audited net Best Estimate prospective resources for the first tier prospects only are rounded down to 474 BCF (943 BCF High Estimate), representing an unrisked estimated NPV for the Best Estimate net Predator gas resources of US$831.7 million.
SLR report that similar gas plays to the Moulouya Prospect are commercial in the Rharb Basin where the discovery rate is "remarkably high". An active hydrocarbon-generating system is confirmed in Guercif for biogenic and thermal gas and is supported by the presence of numerous credible seismic amplitude anomalies.
SLR indicate that use of the 48" Maghreb-Europe gas pipeline ("MEG") to export gas is technically feasible and that there are no existing capacity, market or technical reasons why Predator could not utilise the MEG to commercialise any gas dis
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