Predator Oil & Gas Holdings (LON:PRD), the Jersey-based group, which in mid-March raised £2m at 5.5p per share to cover its works programme costs, has issued an Interim drilling Update on its MOU-3 well in Morocco.
It has encountered unexpected overpressured shallow gas at that well while appraising its Moulouya Fan primary reservoir target.
Group Interests
The £26m capitalised company is engaged in the exploration, appraisal, and development of oil and gas assets in Africa, Europe, and the Caribbean.
The company owns a diversified portfolio of oil and gas interests comprising a CO2 enhanced Oil Recovery project in Trinidad; as well as two gas exploration and appraisal projects in offshore Ireland; and a gas exploration project in onshore Morocco.
Management Statement
Executive Chairman Paul Griffiths stated that:
“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.”
Market Reaction
Upon this morning’s news the group’s shares have been an active market, leaping 30% at one stage to 7.30p.