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Rabat – Jersey-based Predator Oil & Gas Plc, a Jersey-based gas and oil company, announced promising developments in its Moroccan operations.
Citing an Independent Technical Report (ITR) by a UK geoscience consultant Scorpion Geoscience, Predator says that it has found substantial recoverable gas resources in the block in Guercif, located in the northern Oriental Province of Morocco.
The region has high economic potential for the development of Compressed Natural Gas (CNG), the report explains.
The report identifies likely recoverable gas resources of 109.28 and 234.42 billion cubic feet (Bcf), with prospective recoverable gas resources at 139.67 and 312.16 Bcf.
The scoping CNG development plan puts forth the Net Present Value (NPV) – a measure of a venture’s profitability – at 10% and an Internal Rate of Return (IRR) – another measure of the profitability of investment – at 138% of $128.08 million, making the project economically viable for CNG production.
In a statement presenting the report, Predator announced that its 2024 work program includes rigless well testing and exploration drilling, with the initial phase expected to commence around January 29, 2024.
Rigless testing will focus on specific sands in MOU-1 and MOU-3 wells, potentially supporting a future CNG pilot development option.
The report outlines a scoping CNG gas profile that could recover 43.8 Bcf of gas over six years.
Commenting on the news, Paul Griffiths, Executive Chairman of Predator, said that the company is pleased to “finally be making progress.”
He went on; “The initial phase is important to us for designing and implementing the Sandjet rigless testing programme which will follow on after the Sandjet operational planning work is completed.”
Griffiths also stated that the Sandjet program will be focussing on the Moulouya Fan reservoir target as well as other zones at other levels.
He said that NuTech petrophysical logs – mechanisms for scoping out the best drilling spots for oil – indicate that there may be the presence of hydrocarbons, but this will require further validation.
Read Also: Predator Oil & Gas Considers Building Power-to-Gas Project in Morocco
