Predator Oil & Gas Holdings Plc (LSE: PRD), has announced that it has signed an extension to the Company's 2022 rig contract for the use of the Star Valley Rig 101, which is currently available in Morocco.
The extension will facilitate, subject to regulatory approvals and consent, the drilling of the MOU-5 well to evaluate the 177 km² Jurassic structural closure in a crestal location, the limit of which was penetrated in MOU-4 in 2023.
MOU-5 is expected to be drilled between 1 April to 31 May 2024 in order to avail of in-country well services that will remain following the completion of the Company's rigless testing programme, which is currently underway, thereby reducing mobilisation costs for well equipment and services.
The majority of the critical long lead items required for drilling are available from the Company's surplus well inventory stored in its Guercif warehouse, thereby potentially further reducing drilling costs.
MOU-5 is not expected to be drilled over-balanced with heavier drilling mud as the problematic mobile clay formations present in MOU-1, MOU-2 and MOU-3 are not expected to be developed at the MOU-5 well location.
The primary objective is a potentially thick development of porous and permeable, early Jurassic carbonate reservoirs sealed by overlying claystones.
The Company is fully-funded to drill MOU-5 using currently uncommitted, discretionary, cash on the Company's balance sheet.
Paul Griffiths, Executive Chairman of Predator, commented: "We are delighted to have concluded the extension to our 2022 rig contract as 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.
A successful MOU-5 drilling, testing, appraisal and development programme would potentially open up opportunities to exploit our onshore proximity to the Maghreb Gas Pipeline, which is located less than 10 km from the MOU-5 drill site. This is a significant advantage for any future potential developer of a gas find as it will reduce capital infrastructure costs and the lead time to "First Gas".
We also completed a very successful planning trip to Trinidad last month as a result of which we made significant progress towards establishing an operating and administrative presence. We also identified additional workover opportunities on the Cory Moruga licence area and evaluated opportunities for re-perforating wells by deploying the Sandjet testing technology to pinpoint missed oil pays in some of the legacy wells.
The Board remains committed to generating activity and newsflow in the weeks and months ahead and are seeking potentially to take the Company to another level through continued drilling success."
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/06022024/extension-of-2022-star-valley-rig-101-rig-contract/