TIDMPRD
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
-- 9 5/8 " 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 9 5/8 " 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 9 5/8 "
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 km(2)
mapped for the next drilling targets the Ma and TGB-6 horizons
below the 9 5/8 " 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 9 5/8 " 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 8 1/2 " 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
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 :
Enquiries:
Predator Oil & Gas Holdings Plc Tel: +44 (0) 1534 834 600
Paul Griffiths Executive Chairman Info@predatoroilandgas.com
Lonny Baumgardner Managing Director
Fox-Davies Capital Tel +44 (0)2038847447
Jerry Keen 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
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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END
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