Predator Oil & Gas (PRD) , a Jersey-based hydrocarbon explorer, announced the start of civil engineering works at its MOU-5 drill site on the Guercif license in Morocco. The work programme will improve access roads and prepare the MOU-5 well pad, paving the way for drilling operations by late February 2025.

MOU-5 targets the Titanosaurus structure, which Predator sees as transformational to its asset base, further diversifying the portfolio in a success case. The high-impact structure is located adjacent to existing gas infrastructure and leverages Morocco's currently attractive fiscal environment.

Paul Griffiths, CEO of Predator, commenting: "We are very pleased to have put together this new fully-funded drilling campaign efficiently and within budget guidance to allow us to drill MOU-5, as currently forecast, next month.
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It is not often that macro geopolitical and economic factors align with a gas development strategy. We are currently in that cycle and ready to attempt to take advantage of it."

 

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Predator continues to report good progress at MOU-5, today confirming the start of civil engineering works in preparation for drilling, currently targeted for February 25, 2025. The company's portfolio will gain further diversification through the high-value gas asset, supported by Morocco's favourable fiscal regime. The prospective gross recoverable gas resource for the primary reservoir target at MOU-5 was last reported as 5.912 TCF (P50 upside case) on August 8, 2024.

Additionally, in September 2024 PRD highlighted the potential for helium on the Guercif license, as detailed by an independent report by Scorpion Geoscience. The prospective gross estimate of in-place helium ranged from 104.31 BCF (P50 upside case) to 598.88 BCF (P10 upside case).

The Guercif license equity holders are Predator (operator) at 75% interest, and ONHYM, Morocco's state oil company, at 25% interest. The license was issued for 8 years. Guercif has been lightly explored with 4 deep exploration wells drilled by Elf in 1972 (GRF-1), Phillips in 1979 (TAF-1X), ONAREP (the forerunner of ONHYM) in 1985 and 1986 (MSD-1 and KDH-1), and 2 shallow stratigraphic wells drilled by BRPM for coal exploration in the 1950s.

The Moulouya (MOU) prospect is a low-risk proven gas play that is a potentially play-opening opportunity for shallow gas in multiple, high-quality reservoirs at depths of 2,000 to 5,000 ft. The prospect lies just 9 km from the Maghreb gas pipeline where significant spare capacity exists for the transport of gas either for domestic use or for export to the EU. Capex is expected to be very low given the shallow drilling depths, high recoveries per well based on potentially contiguous reservoir sands, anticipated quality of the dry gas, and proximity to the Maghreb pipeline.

Drilling at MOU-5 aligns with the ongoing global energy shift toward increased gas exploration, particularly in the US, Norway, Middle East, Africa and Far East. This has been partially driven by dwindling gas reserves in Europe during the 2024/25 winter season, alongside geopolitical concerns over gas security and supply, prompting European policymakers to seek lower energy costs and bolster economic growth.

Policymakers are further motivated by advancing net zero targets, driving increased gas exploration worldwide. Gas has a significantly lower carbon footprint than competing hydrocarbon sources oil and coal, making it a good transitional energy source to drive lower CO2 emissions during the shift to renewables.

Furthermore, gas is currently a hedge against energy price volatility and spikes, driving higher supply and security of access, when renewable energy cannot alone cope. Unlike gas, generation from solar and wind cannot be controlled without the use of batteries, necessitating the use of low-carbon sources like gas to fill the gaps.

 

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