Predator Oil & Gas Holdings plc is in final preparations to drill the MOU-1 step-out well, MOU-2, targeting 295 bcf net contingent resources at Guercif, Morocco.
PROGRAMME
The company said it was completing local permitting for the second of two alternative locations for the step-out well to the MOU-1 well which was completed for rigless testing in 2021.
Agreement on the final location will follow the integration of reprocessed 2D seismic data recently received.
Civil engineering works will begin this month to construct the well pad for the MOU-2 step-out well.
The company has sourced long lead equipment including well heads, casing, cement, chemicals, drill bits mud motors and downhole tools as well as mud and cementing services from the UK, France, USA, Canada, Egypt and the Netherlands.
Predator anticipates instructing Star Valley Rig 101 to drill and complete the well for rigless testing between September and October 2022.
WELL OBJECTIVES
The well will test the Moulouya Fan (previously designated the MOU-4 Fan).
Predator said that MOU-2 will test the core of the Moulouya Fan in a shelf slope position where seismic signatures indicate the presence of major channel systems.
The company will provisionally drill the well to 1,500 metres TVD [true vertical depth] KB and said it expected to encounter the top of the Moulouya Fan between 1,130 and 1,200m TVD KB.
At this location the well will target a gross potential Moulouya Fan reservoir sequence of 110m.
MONETISATION
SLR Consulting’s competent person’s report (CPR) gave an unrisked NPV of US$592 million for the net best estimate resources of 295 bcf being targeted by the upcoming MOU-2 well subject to proving commerciality.
Predator is planning to place MOU-2 in a success case on an extended production test for an initial CNG [compressed natural gas] development.
The company is targeting first CNG gas sales within six months of completion of rigless testing for MOU-1 and MOU-2.
Predator is also in discussions with the Moroccan industrial market to secure a memorandum of understanding for a gas sales agreement implemented following the MOU-2 and MOU-1 rigless test results.
TRINIDAD
Predator also gave news of further developments at its CO2 enhanced oil recovery (EOR) operations in Trinidad.
The company is working with lease operators in the PS-1 Block and has selected four additional sites for CO2 EOR operations.
This will be the key area of focus for the remainder of 2022.
OPPORTUNITIES
Executive chairman Paul Griffiths said that the “unique risk-reward” proposition of the Guercif licence had been reinforced in the last few months by the European energy crisis.
“We have the means to drill a sizeable onshore gas target but most importantly a clear plan for early monetisation though a CNG development that does not require any new gas pipeline infrastructure or any long delays in accessing existing infrastructure.
“The Moulouya Fan project is a project made for the current shortage of gas scenario in Morocco and Europe.
“Sometimes global events align to favour those that were prepared to take risks in an area that was for so long neglected and overlooked.
“Recognising missed opportunities is a key driver for our company’s management as it creates our competitive edge.”