London-listed Predator Oil & Gas (PRD) has reached “another significant step” progressing the development of shallow gas at the Guercif Permits as a means of reducing Morocco’s carbon footprint.
Paul Griffiths, CEO of Predator Oil & Gas said that Morocco was “re-entering an exciting period of sustained drilling activity for gas.”
In this morning’s statement, Predator detailed their entrance into a Rig Option Agreement with Calgarly-based Star Valley Drilling Ltd -- this will be entered via the company’s subsidiary, Predator Gas Ventures Ltd. ("PGVL").
The option, executed to 31 January 2020 unless otherwise mutually agreed by the parties, provides for a rig mobilisation date within a window commencing 15 March 2020 and ending 30 April 2020.
The initial drilling programme will comprise the Moulouya-1 Prospect to a depth of 2,000 metres and operations are expected to take up to 30 days.
Predator owns 75% of Guercif, operating the site in a joint venture with the Office National des Hydrocarbures et des Mines ("ONHYM") who act on behalf of the State and control the remaining 25% stake.
Shares in Predator Oil & Gas were trading 21.05%% higher at 5.750p on Monday morning.
Completion of the first well will release US$ 1 million of PGVL's US$ 1.5 million bank guarantee with ONHYM, subject to final delivery of all the data from the well to ONHYM.
The statement explained that PGVL will have the option to extend the programme by drilling either an appraisal well or a follow-up exploration well to a depth of 2,000 metres to capitalise on significantly reduced mobilisation and well services costs.
“The Company's gas prospects are located at the central core of this activity and the Guercif licence area offers us attractive running room with multiple prospects and leads to test all the gas plays currently being evaluated for drilling around us,” added Mr Griffiths.
Follow News & Updates from Predator Oil & Gas Holdings here: