Fox-Davies has upgraded its target price for Predator Oil & Gas (LON: PRD) from 25p/share to 35p/share following news of NuTech petrophysical analysis for the MOU-4 well in Morocco. The share price jumped 42.3% to 13.875p, which is still lower than the Friday closing price of 15.5p.
The analysis has identified a potential gas reservoir at the top of the Jurassic carbonate target. NuTech interprets two metres of likely gas reservoir with average porosity of 19.9% and average gas saturation of 56%. There are also two other areas of likely gas sands above that level.
A rigless testing result will help to derisk the larger Jurassic structural closure in respect of reservoir development and migration of gas.
Fox-Davies estimates that at a recovery factor of 80% the recoverable volume of gas is 484bcf. The structure is less than 5km from the Maghreb gas pipeline.