MOROCCO: Predator Oil & Gas Commences MOU-3 Well Sandjet Rigless Testing Programme

The early stages of the Sandjet rigless testing programme have commenced with the arrival of some well services equipment at the MOU-3 well site and the preparation of the well for re-entry and perforating.

Extensive operations at MOU-3 are anticipated to last for at least five weeks before moving to the next well in the Sandjet testing programme.

As a reminder to shareholders, the primary objective of the Sandjet is to effectively reach beyond the zone of formation damage caused by the requirement for over-balanced drilling during drill operations, which prevented the well from flowing gas.

MOU-3 perforating procedures

Up to three intervals will be separately perforated. Each interval will be isolated with a retrievable plug after testing to prevent cross-flow of any produced gas at different pressures between deeper and shallower reservoir sands. Pressure data will be collected and analysed for each interval to determine the extent of any connected potential gas volume compared to pre-test volumes estimated to be in place in the 13.9 km2 MOU-3 structure (the Moulouya structure).

Several Sandjet perforating runs may or may not be required to perforate additional sands depending on the outcome of the initial perforating results.

Interval objectives for MOU-3

• TGB-6 and Ma Sand will be perforated over a gross interval of 80 metres with initially 13 perforating points.
• Estimates of potential gas resources for this interval are as previously defined in the Independent Technical Report dated 24 January 2024 by Scorpion Geoscience Limited.
• Subject to successful gas flow at commercial gas flow rates and confirmation of connected volumes, the middle sequence may potentially support a CNG gas profile of between 10 to 20 million cf/day.
•  TGB-4 (“lower sequence”) will be perforated first over a gross interval of 24 metres with 4 perforating points. 
• Estimates of potential gas resources for this interval were previously defined in the SLR Consulting Limited Competent Persons Report dated March 2019 and have not changed.
• This is a higher risk perforating target as the potential stratigraphic trapping mechanism defined by stronger seismic amplitudes supported by recent seismic inversion modelling has yet to be validated by a successful gas flow test in MOU-3.
• Subject to a successful commercial gas flow rate and confirmation of connected volumes this lower sequence may potentially support future scaling up of the CNG gas profile to 50 million cf/day facilitated by the Collaboration Agreement with Afriquia Gaz.

Following completion of the MOU-3 rigless well testing a decision will be made to move to either MOU-1 or MOU-4 next to perforate the TGB-2 Sand and the Moulouya Fan sequence respectively.

A carbonate interval in MOU-4 has also been selected for possible perforating with Sandjet in order to calibrate the NuTech petrophysical log interpretation over this interval which is located at the extreme edge of the Jurassic structure to be tested by MOU-5.

Jurassic MOU-5 well (Titanosaurus structure)

• The MOU-5 well will now commence drilling as soon as practical after entry into the First Extension Period following the unforeseen delay to the scheduling of the Star Valley rig 101 programme due to other commitments.
• The Titanosaurus structure covers an area of up to 187 km2 and has up to 289 metres of vertical relief. Estimates of potential gas resources for this interval are as previously defined in the Independent Technical Report (“ITR”) dated 24 January 2024 by Scorpion Geoscience Limited. These are likely to be increased based on new seismic inversion modelling to evaluate a potentially thickened reservoir sequence.
• The prospective reservoir fairway is an Early Jurassic carbonate sequence and different from the sequences of sands for the Moulouya MOU-3 structure. The primary reservoir target and structural setting has never before been tested in Morocco.
• The gas source is interpreted as thermogenic dry gas and not biogenic gas as found in the Moulouya structure.
• Average well depths to penetrate the entire prospective interval are in the range 800 to 1100 metres Measured Depth. Estimated drilling time is 12 to 14 days.
• The Company determines that there is a better than 50% chance of success based on the fact that MOU-5 is immediately updip from MOU-4, which helped define the target for MOU-5.
• Potential development scenarios are being considered in the event of a successful outcome to drilling.
• The MOU-5 pre-drill well location is located only 2.3 kilometres from a valve station on the Maghreb Gas Pipeline (“MGPL”) to Europe.
• A fixed pipeline development option is likely to be an attractive investment proposition if MOU-5 encounters material gas volumes and is subsequently tested at commercial flow rates.
• Based on an anticipated dry gas reservoir, development costs are expected to be significantly reduced given the short length of new pipeline, 2.3 kilometres, necessary to connect to existing MGPL infrastructure with significant spare throughput capacity.
• For the purposes of verifying the costs to construct a tie-in pipeline from the MOU-5 well location to the MGPL,  the Company is planning a desk-top and site study based on pipeline capacities of 100, 300 and 500 million cf/day.

 Rig requirements

The Company has been very frustrated during 2024 in regard to scheduling drilling activities in a timely manner in line with its business development strategy for locating additional gas resources in its Guercif  licence area.

As a result the Company has started the process of sourcing a rig with related well services from overseas to bring to Morocco to enable it to have the flexibility under its sole control and discretion to progress a potential Titanosaurus step-out drilling campaign and further appraisal drilling of gas targets within and adjacent to the Moulouya structure. 

Financing

The Company is fully financed for all its near-term operations.

Following the results of the Sandjet rigless testing and the first two well workovers in Trinidad designed to re-establish oil production, the Company will re-assess its funding needs for the next 12 months.