Predator Oil & Gas (PRD) , a Jersey-based hydrocarbon explorer, issued an update on drilling activities at its MOU-3 well, located within the Guercif licence onshore Morocco. Predator has a 75% interest in the licence while ONHYM - Morocco's state oil company - has the other 25%.
For context, on July 21 Predator announced the start of rigless testing at the MOU-3 site, targeting the shallow "A" sand reservoir - previously identified as the most promising zone for gas flow and CNG development. The 10-day program aimed to perforate the formation and evaluate its flow characteristics and overall reservoir quality.
Today, Predator confirmed successful perforation of the "A" sand reservoir. However, the perforations may have extended close to the max limit of probable formation damage from drilling. The well is currently filled with nitrogen and shut in to allow for potential slow pressure buildup and cleanup within the affected zone.
Looking ahead, desktop studies are underway to develop a new well design and drilling mud program that incorporate insights from previous wells (MOU-1, MOU-2, MOU-3 and MOU-4) - recognising that current well design is not optimal to the now-understood reservoir geology, with formation damage identified as a key issue.
Preparations are advancing to drill and log a new MOU-6 well later this year from the MOU-3 pad, targeting all sands seen in MOU-3 above 950m. The focus will be on minimising formation damage using specialised drilling fluids, and maintaining balanced drilling conditions to protect the fine-grained, unconsolidated sands.
Paul Griffiths, CEO of Predator Oil & Gas Holdings commented: "We are pleased that by accessing the larger perforating guns for the first time that we have managed to collect valuable information to improve our understanding of the extent and nature of the formation damage caused by over-balanced drilling.
Whilst the perforating has been successful, thus far it has not been able to completely overcome the formation damage to allow the well to flow. Pressure build up in the well is being monitored to see if with time the damage can be overcome.
The new well, MOU-6, is being designed to mitigate for formation damage and is crucial for evaluating potential well productivity and reservoir performance at several levels. We will seek to execute the MOU-6 drilling programme at the earliest opportunity this year in order to maintain momentum."
View from Vox
Predator continues to advance operations on its 75%-owned Guercif licence onshore Morocco. The company announced rigless testing at the MOU-3 site 10 days ago, and today updated markets with the results. Testing focused on the promising shallow "A" sand reservoir - the best candidate for CNG development. PRD used for the first time its larger 27/8" power jet NOVA guns, which successfully perforated the formation, but could not overcome formation damage to achieve gas flow. The company is monitoring pressure to see if the damage can be overcome with time.
The good news is that the test yielded valuable data that will be used to inform future drilling, starting with the new MOU-6 well that will be fast-tracked this year from the existing MOU-3 pad. The well will be optimised for balanced drilling with a focus on minimising formation damage. The shallow formation is highly prospective, with already confirmed biogenic gas, including helium. Previously in 2023, drilling through the "A" sand registered gas flow, with approx. 50 psi under-balanced at 341m from surface.
Additionally, drilling at the new MOU-5 well started on March 3, 2025 with positive initial results. MOU-5 found its primary target, and is being advanced for gas and helium exploration. The MOU-5 structure holds significant upside that can be unlocked through a large-scale 3D seismic program, which PRD plans to fund through a farmout. The prospective gross recoverable gas resource for the Titanosaurus structure - the primary reservoir target at MOU-5 - was last reported as 5.912 TCF (P50).
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.
The MOU-3 rigless testing programme was executed under budget. Predator remains debt-free, with a robust cash position at year-end FY24 of £3.8m, giving it sufficient runway to fund all its work programs over the next 12 months.
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