REG - Predator O&G Hldgs - MOU-2 Drilling Update

Predator Oil & Gas HoldingsAnnouncement

25/01/2023 07:00

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RNS Number : 7482N  Predator Oil & Gas Holdings PLC  25 January 2023

FOR IMMEDIATE RELEASE

25 January 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")

 

       Highlights

·    MOU-2 well suspended above Moulouya Fan target.

 

·    Re-evaluation of drilling mud programme required for unexpected
geological formation before re-entry is considered.

 

·    Star Valley rig 101 will remain in place on location.

 

·    Extended MOU-1 perforating and testing programme to proceed.

 

 

MOU-2 Drilling Update

Predator Oil & Gas Holdings Plc (LSE: PRD), the Jersey based Oil and Gas
Company with near-term gas operations focussed on Morocco, announces an update
on the drilling of the MOU-2 well in the Guercif Petroleum Agreement onshore
Morocco.

The MOU-2 well has been suspended with an option to re-enter after reaching a
depth of 1,260 metres Measured Depth.

Wireline logs were acquired from the 95/8" casing point at 677 metres to 1,010
metres Measured Depth. The wireline logging tools were not able to log deeper
than this depth due the presence of extremely sticky clays in a geological
formation overlying the Moulouya Fan primary objective. Photographs of the
logging tools covered in the formation mud have been uploaded to the Company's
website at www.predatoroilandgas.com (http://www.predatoroilandgas.com) .

Below the logged interval a gross interval of 165 metres was penetrated with
up to 100 metres of variable quality sand. A strip log through this interval
has been uploaded to www.predatoroilandgas.com
(http://www.predatoroilandgas.com) . Presence of significant thicknesses of
sands demonstrate the potential sand source area feeding the Moulouya Fan
below the debris flow.

This geological formation is interpreted to be a slumped basin margin
debris-flow which has not been encountered in previous drilling in the area.
The clays are particularly under-compacted and sticky due to very rapid
deposition within the debris-flow. The interval presented a drilling challenge
with very low rates of penetration.

Presence of significant thicknesses of sands in the debris-flow demonstrate
the potential sand source area feeding the Moulouya Fan as mapped pre-drill.

Above the depth at which the well was suspended a detached transported block
of the Moulouya Fan target may have been penetrated. A gross interval of 28
metres was estimated on the basis of the well site cutting samples and
lithological log. 16 metres of potential reservoir was interpreted from
drilling breaks. This can only be confirmed by wireline logging.

At 1260 metres Measured Depth a decision to suspend the well was taken as
rates of penetration had dropped to below 1 meter/hour.

Forward Plan

The mud programme and its compatibility with the previously not seen sand-rich
geological formation represented by the debris-flow will require re-evaluation
to achieve a more cost effective rate of penetration.

The debris flow potentially forms a highly effective seal on the underlying
Moulouya Fan. The thickness of the Moulouya Fan reservoir interval is expected
to increase between MOU-1 and MOU-2 based on the sand content of the
debris-flow penetrated in MOU-2 allowed an extrapolation across to MOU-1 to be
made.

As a result of this the MOU-1 perforating and testing programme will be more
focussed and extensive in the principal zone of interest to determine
potential connectivity with the seismically defined area of the Moulouya Fan
between MOU-1 and MOU-2 that is interpreted as potentially gas-bearing.

A re-entry and deepening of MOU-2 will be fully evaluated once a solution to
optimising the drilling mud programme and mud properties has been completed.

Conclusion

The Moulouya Fan target has not been reached yet in MOU-2 as a consequence of
the requirement to re-evaluate the drilling programme through the unexpected
geological formation encountered in the well.

Until that re-evaluation is complete and a decision to re-enter MOU-2 has been
taken pre-drill objectives remain unchanged as do potential estimates of gas
resources.

The MOU-1 testing programme is being progressed and revised to gather as much
information as possible on connectivity of potential gas sands over a wide
area.

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

"MOU-2 has been an extremely challenging well to drill due to the presence of
a particular geological formation not previously encountered.

The prudent and safer option was to suspend the well and leave it in a state
to re-enter once a better understanding of the mud programme required to drill
this particularly complex interval efficiently and cost-effectively.

Whilst this is not the result we wanted the pre-drill objectives and potential
resources remain unchanged.

The Star Valley rig will remain in place over the well head."

 

 

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

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

 David Coffman / Jon Belliss

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

 Christian Dennis, CEO

 Ben Maitland, Corporate Finance                                 Tel. +44 (0) 203 034 2707

 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 in prospects less than 10 kilometres from the
Maghreb gas pipeline.  The MOU-1 well has been completed and a follow-up
testing programme is being finalised to coordinate with a further drilling
programme.

 

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 to produce
"greener" oil.

 

In addition, Predator also 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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