Predator Oil & Gas (Holdings) plc said it hoped to start drilling during Q2 2021 at its Guercif gas project in Morocco as the international Covid-19 vaccination programme is expanded.
The company said that co-ordination of operations was being conducted with other operators planning to drill during the second quarter in northern Morocco once restrictions are relaxed.
Transfer of full ownership of the Maghreb gas pipeline to Morocco is expected during Q4 2021 in time to develop a larger gas find at Guercif for export to the European gas market.
Guercif offers the only near-term drilling activity for Predator which has a rig in-country. The company announced in December 2020 that gross audited best estimate recoverable prospective gas resources was 819 BCF with high estimate gross prospective recoverable gas at 1,823 BCF.
Chief executive Paul Griffiths said: “Guercif drilling plans are targeting Q2 2021 for the execution of a potentially transformational exploration well coinciding with a time when the potential to establish a pivotal position in the Moroccan gas market has never been stronger.”
The company added: “Based on realising the maximum potential of the industrial market for gas in Morocco, one BCF of gas in Morocco is valued at up to ten times the equivalent value of one BCF of gas onshore Trinidad.
“This reflects gas prices paid by private industry in Morocco up to five times those prices paid by state utilities for Trinidad gas; no taxation on operating profits for 10 years in Morocco; and lower capital and operating costs.”
Guercif gas is expected to be dry gas whereas recent Trinidad gas discoveries are rich in liquids and therefore have a significantly higher CO2 emissions footprint.