Predator Oil & Gas Holdings Plc (PRD) released to investors on Thursday a Resource update and Conceptual Gas Field Development Plan for its Ram Head licence, offshore Ireland.
The resource update gave net to Predator a Best Estimate of 725.5 BCF, up from 508 BCF and a High Estimate of 1826.6 BCF, up from 1,370 BCF Prospective Gas Resources.
The licence option 16/30 is 50% owned by Predator and operated by its wholly owned subsidiary, and partner Theseus, who own 50%.
The conceptual development study showed that the Ram Head gas discovery can be developed with 10 vertical wells completed in 3 gas zones.
The company expects that the gas will most likely be produced by a “depletion drive mechanism” with an Ultimate Technical Gas Recovery of 96% based on a gross GIIP volume of 1,834 billion cubic feet of natural gas.
An independent study showed that re-entering and testing 3 gas-bearing zones at the 49/19 well is technically feasible at a cost of $20.2 million.
Shares in Predator ticked up 4.4% following the release
Paul Griffiths, CEO of Predator Oil & Gas said "The confirmation of the potential size of the gas resource combined with a simple and clear development concept serve to further illustrate why Ram Head is currently Ireland's largest undeveloped gas resource.”
The company will confirm the actual well deliverability through a re-entry of the well and conduct tests over 3 gas zones to get a better picture of the vertical and lateral connectivity of the reservoirs.
Paul Griffiths told investors that further evaluation is warranted, and a drive to attract drilling partners to assess development potential without requiring a new appraisal well is underway, subject to regulatory approvals and consents.
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