Predator Oil & Gas Holdings Plc (PRD), the Jersey-based Oil and Gas Company with near-term hydrocarbon operations focussed on Morocco and Trinidad announces an operations update.
- Rigless testing has commenced
- Regulatory granting of the entry into the First Extension Period
- First use of new Sandjet and coiled tubing technology in Morocco
- MOU-3 rigless testing programme unchanged
Sandjet rigless testing - CNG to Moroccan industrial market
Sandjet rigless testing tools and chemicals required for rigless testing operations were imported into Morocco following customs clearance documentation issued on 12 June 2024.
The remaining rigless testing equipment was imported after customs clearance was granted on 2 August 2024. This comprised primarily the Baker Hughes logging and coiled tubing units which were sourced from the Netherlands. Pictures of the coiled tubing unit, new to Morocco, have been uploaded to the Company's website at www.predatoroilandgas.com to provide context for the scale of the operation being undertaken by the Company.
The delay in customs clearance was beyond management's control.
First Extension Period
Ratification of Petroleum Agreement Amendment No. 4 which extended the Initial Period of the Guercif Petroleum Agreement and corresponding Exploration Permits to 61 months until 5 June, 2024 was announced on 1 May 2024.
An application to enter the First Extension Period was submitted as required 2 months before the expiry of the Initial Period on 5 June 2024.
Confirmation of entering the First Extension Period requires obtaining the required statutory approvals under the form of an order executed by the Ministry of Energy approving the extension to the Exploration Permits into the First Extension Period.
MOU-3 rigless testing programme unchanged
The Company's rigless testing operations commenced before 5 June 2024 with site preparations at MOU-3 with initial customs clearances received on 12 June 2024 to import the Sandjet testing tools and chemicals. Unfortunately it was beyond management's control that the programme would be subsequently impacted by the ratification required to approve entering the First Extension Period with a corresponding delay in receiving further customs clearances.
The Company took steps to manage the mobilisation logistics to ensure that no significant standby costs were incurred whilst waiting on regulatory documentation.
At all times the Company's primary concern was to maintain the ability to utilise the key rigless testing equipment and services within its available time slot for exclusive use by the Company. This we have successfully achieved.
The Company is introducing new rigless testing technology in the form of the Sandjet testing tools and the Baker Hughes coiled tubing unit. Positive results from MOU-3 could potentially transform rigless testing strategies and increase cost-effectiveness.
The MOU-3 testing programme remains as announced on 6 June 2024.
A further operations update will follow once the MOU-3 rigless testing programme is completed.
The Company does not intend to provide an operations schedule for testing at present as plans remain flexible and may be modified depending on initial test results and operational efficiencies.
The Company thanks ONHYM for their ongoing support and partnership through the regulatory process which largely resulted from the Company's desire to keep the momentum of operations going in order to avail of limited availability of well services equipment in a competitive global market.
Paul Griffiths, Executive Chairman of Predator, commented:
"It goes without saying that the last 12 months following the achievement of the MOU-3 and MOU-4 drilling programmes has been immensely frustrating for Directors, Management and shareholders alike. Planning for rigless testing has been impacted by several amendments to the Initial Period of the Guercif Petroleum Agreement, whilst trying to balance access to limited well services and equipment caused by global competition. Ours is a big operation for Morocco but not by global standards. We have to be patient and creative.
However, by entering the First Extension Period we can look forward to re-establishing our operational momentum and newsflow.
Our near-term ability to supply CNG to the Moroccan industry is more advanced than other possible options. The Company is debt-free which allows it to have greater flexibility when considering different options, including M&A transactions and a partial divestment, for the modest levels of development finance required for "First Gas". This is why Afriquia Gaz remains heavily engaged with the Company and supportive of our efforts to get gas to market at the very earliest opportunity."