Predator Oil & Gas Holdings Plc announced on Monday the signing of an extension to the company’s 2022 rig contract for the use of the Star Valley Rig 101 in Morocco, according to a company press release.
This extension will enable the drilling of the MOU-5 well to assess the 177km² Jurassic structural closure at a crestal location. This area’s limit was reached during the penetration of MOU-4 in 2023.
Scheduled between April 1st and May 31st, 2024, the MOU-5 drilling will capitalize on in-country well services remaining after the completion of the Company’s ongoing rigless testing program.
This arrangement will reduce mobilization costs for well equipment and services, says the same source.
“It provides us with the perfect opportunity to accelerate the cost-effective and fully-funded drilling of a large Jurassic structure adjacent to our area of focus for rigless well testing,” commented Paul Griffiths, Executive Chairman of Predator, on the extension of the 2022 contract.
He said that the successful execution of the MOU-5 drilling, testing, appraisal, and development program could “potentially unlock opportunities” for leveraging the onshore proximity to the Maghreb Gas Pipeline, located within 10 kilometers of the MOU-5 drill site.
This offers a significant advantage, reducing capital infrastructure costs and expediting the path to “First Gas” production for potential gas discoveries, underscored the Executive Chairman of Predator.
The majority of the crucial long lead materials required for drilling are readily available from the Company’s surplus well inventory, which is housed in its Guercif warehouse. This accessibility can further reduce drilling costs, according to the same source.
Unlike MOU-1, MOU-2, and MOU-3, the company said that MOU-5 is not projected to be drilled overbalanced with heavier drilling mud, as the problematic mobile clay formations present in those locations are not predicted at the MOU-5 site.
The main objective of this project is to investigate possibly thick developments of porous and permeable early Jurassic carbonate reservoirs sealed by overlying claystone.
It is worth noting that the Company is fully funded to carry out the MOU-5 drilling operation with currently uncommitted discretionary funds on the balance sheet.
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