Predator Oil & Gas Holdings plc has begun Sandjet rigless testing on the MOU-3 well at Guercif in Morocco.
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Following the June arrival of initial equipment, testing tools and chemicals required for rigless testing operations were imported into Morocco after customs clearance.
Remaining rigless testing equipment arrived after clearance on 2 August, with the regulatory delays causing “significant” standby costs.
The company’s operations will be the first use of the equipment in the country
The equipment mainly comprises the Baker Hughes logging and coiled tubing units from the Netherlands.
Positive results from MOU-3 could potentially transform rigless testing strategies and increase cost-effectiveness, added Predator.
The company has also ratified the petroleum agreement amendment No. 4 which extended the initial period of the Guercif petroleum agreement and exploration permits to 61 months until 5 June 2024.
An application to enter the first extension period was submitted as required two months before the expiry of the initial period on 5 June 2024.
Executive chairman Paul Griffiths added that the company had been frustrated by several amendments to the initial period and by worldwide competition for well services and equipment.
“Ours is a big operation for Morocco but not by global standards.
“We have to be patient and creative.
“However, by entering the first extension period we can look forward to re-establishing our operational momentum and news flow.
“Our near-term ability to supply CNG [compressed natural gas] to the Moroccan industry is more advanced than other possible options.
“The company is debt-free which allows it to have greater flexibility when considering different options, including M&A transactions and a partial divestment, for the modest levels of development finance required for ‘first gas’.”
“This is why Afriquia Gaz remains heavily engaged with the company and supportive of our efforts to get gas to market at the very earliest opportunity.”