REG - Predator O&G Hldgs - Interim drilling update MOU-3

Predator Oil & Gas HoldingsAnnouncement

13/06/2023 07:00

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RNS Number : 4679C  Predator Oil & Gas Holdings PLC  13 June 2023

FOR IMMEDIATE RELEASE

13 June 2023

 

               Predator Oil & Gas Holdings Plc / Index: LSE
/ Epic: PRD / Sector: Oil & Gas

 
LEI 213800L7QXFURBFLDS54

Predator Oil & Gas Holdings Plc

("Predator" or the "Company" and together with its subsidiaries the "Group")

 

                               Interim drilling
update MOU-3

 

Highlights

 

·    Significant shallow overpressured gas encountered

 

·    95/8" casing safely set at 778.5 metres TVD MD

 

·    De-risks gas migration to six potential deeper targets

 

·    Drilling ahead on schedule and within budget

 

 

Predator Oil & Gas Holdings Plc (LSE: PRD), the Jersey based Oil and Gas
Company with near-term gas operations focussed on Morocco, is pleased to
announce an interim drilling update for the MOU-3 well appraising the Moulouya
Fan primary reservoir target for which contingent gas resources have been
previously announced.

 

Operations update

 

Prior to setting 95/8" casing an inflow of gas into the well was experienced.
A substantial drilling break from 339 to 350 metres TVD KB was identified as
the source of the gas. This correlated with an 11 metre-thick, unconsolidated,
good quality sand with elevated background gas readings.

 

Mud weight was gradually increased to 1.25 S.G., above that required to
balance hydrostatic pressure. to reduce the inflow of gas into the well. This
gas zone is therefore significantly overpressured (122 psi overpressured) and
likely to be supported by connectivity to gas volume to provide pressure
support.

 

A second thin sand with a 2.42% formation gas show was encountered at 750
metres TVD MD.

 

The Company's experienced management team safely set 95/8" casing at 764
metres TVD MD to protect the two new gas horizons, including the overpressured
interval, that were not anticipated pre-drill based on offset wells MOU-1 and
MOU-2. This was a difficult and challenging exercise for the drilling team but
was achieved safely and without incident.

 

 

 

 

 

 

Drilling costs

 

Despite the challenges posed by unexpected overpressured shallow gas the
pre-drill time-depth curve remains as planned and costs to date are within
pre-drill working capital forecast estimates.

 

Technical update

 

The unexpected overpressured shallow gas occurs within a structural closure of
up to 6 km²

mapped for the next drilling targets the Ma and TGB-6 horizons below the 95/8"
casing depth of 778.5 metres TVD MD. The 11 metre-thick overpressured gas
interval is thicker than the sand thickness used for these intervals to
estimate gas-in-place in a success case. 19 metres of net sand is the P50
thickness used to estimate gas-in-place for the Moulouya Fan primary objective
in a success case.

 

The presence of overpressured gas trapped at shallow depths in a common
structural closure above the next Ma and TGB-6 targets has de-risked vertical
thermogenic gas charge from deeply buried source rocks generating dry gas.

 

Migration pathways can now be identified on seismic based on the early MOU-3
drilling results.

 

Six targets, including the Moulouya Fan primary objective, below the 95/8"
casing depth at 778.5 metres TVD MD are potentially in contact with the gas
migration pathway to the shallow overpressured gas.

 

The potential gas migration pathway into the primary target in the MOU-4
structure  could be proportionately de-risked.

 

Forward drilling plans

 

The Company is drilling ahead cautiously in 81/2" hole to evaluate six
targets, in addition to the newly identified two shallow zones.

 

A further drilling update will be given after the completion of logging
operations within the timeframe guidance previously announced.

 

Testing programme

 

The positive initial shallow results to date from MOU-3 will need to be
evaluated in the context of the sequence for rigless well testing and the
intervals to be prioritised for potential gas flow in a success case. This
exercise will only be completed once the MOU-3 well has been logged and the
logs analysed to determine zones with the best gas deliverability
characteristics. The priority will be to focus on potential for high
deliverability gas rates if supported by wireline logging results.

 

Paul Griffiths, Executive Chairman of Predator Oil & Gas Holdings
Plc commented:

"Unforeseen overpressured gas at shallow depths is always a potential hazard
in a new poorly explored sedimentary basin. I would like to thank our
experienced drilling management team, Lonny Baumgardner and Moyra Scott, for
overcoming successfully; using their extensive drilling experience, what could
have developed into a very serious operational challenge.

The presence of shallow overpressured gas with an effective sealing caprock
has added to the identification of two new potential gas reservoirs that were
not known about pre-drill.

Of even greater significance is that the overpressured gas has validated
shallow trap integrity and identified a clear path for the migration of deep
gas into the next six targets to be evaluated by MOU-3.

We are very encouraged by what we have found to date, which we believe at this
early stage is material in the context of our CNG development plans but remain
cautious as we drill ahead through a section that may or may not contain more
overpressured gas.

However this is already an exciting beginning for our shareholders to our
planned drilling and testing programme."

 

For further information visit www.predatoroilandgas.com
(http://www.predatoroilandgas.com)

 

Follow the Company on twitter @PredatorOilGas.

 

This announcement contains inside information for the purposes of Article 7 of
the Regulation (EU) No 596/2014 on market abuse

 

For more information please visit the Company's website
at www.predatoroilandgas.com (http://www.predatoroilandgas.com/) :

 

 

 

Enquiries:

 Predator Oil & Gas Holdings Plc                                 Tel: +44 (0) 1534 834 600

 Paul Griffiths               Executive Chairman                 Info@predatoroilandgas.com (mailto:Info@predatoroilandgas.com)

 Lonny Baumgardner   Managing Director

 Fox-Davies Capital                                              Tel +44 (0)2038847447

 Jerry Keen                                                      jerry@fox-davies.com (mailto:jerry@fox-davies.com)

 Novum Securities Limited                                        Tel: +44 (0) 207 399 9425

 David Coffman / Jon Belliss

 Optiva Securities Limited                                       Tel: +44 (0) 203 137 1902

 Christian Dennis

 Flagstaff Strategic and Investor Communications                 Tel: +44 (0) 207 129 1474

 Tim Thompson                                                    predator@flagstaffcomms.com (mailto:predator@flagstaffcomms.com)

 Mark Edwards

 Fergus Mellon

 

 

 

 

Notes to Editors:

 

Predator is operator of the Guercif Petroleum Agreement onshore Morocco which
is prospective for Tertiary gas less than 10 kilometres from the Maghreb gas
pipeline.  The MOU-1 well drilled in 2021 is being prepared for a follow-up
testing programme to coordinate with a further drilling programme to move the
project to a CNG development stage.

 

Predator is seeking to further develop the remaining oil reserves of
Trinidad's mature onshore oil fields through the application of CO2 EOR
techniques and by sequestrating anthropogenic carbon dioxide.

 

Predator owns and operates exploration and appraisal assets in licensing
options offshore Ireland, for which successor authorisations have been applied
for, adjoining Vermilion's Corrib gas field in the Slyne Basin on the Atlantic
Margin and east of the decommissioned Kinsale gas field in the Celtic Sea.

 

Predator has developed a Floating Storage and Regasification Project ("FSRUP")
for the import of LNG and its regassification for Ireland and is also
developing gas storage concepts to address security of gas supply and
volatility in gas prices during times of peak gas demand.

 

The Company has a highly experienced management team with a proven track
record in operations in the oil and gas industry.

 

 

 

 

 

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