Predator Oil & Gas Discovers New Commercially Viable Gas in Guercif
Fez - The US-based Predator Oil & Gas Holdings has announced the discovery of a new gas field likely to be commercially viable in Guercif, northeastern Morocco.
A reassessment of the potential of the Guercif MOU-4 prospect led to this discovery, compared to the last update published in 2020 by SLR Consulting, an Irlandese international environmental consultancy company.
The firm's report indicated that the prior gross estimate for the project was 393 billion cubic feet, with Predator owning a 75 percent stake in 295 billion cubic feet.
Based on a higher gas initially in place (GIIP) estimate for the thicker reservoirs found in the MOU-4 discovery, the net reserves attributable to Predator's interest now reflect 708 billion cubic feet of gas.
In a Competent Persons Report (CPR) document published on January 13, SLR announced that “based on the potential size of the MOU-4 well structure, the project is likely to be commercially viable.”
The company pledged that once reserves are proven and the perimeter is developed it will seriously examine the likelihood of manufacturing compressed natural gas (CNG) on-site.
Predator intends to serve the industrial sector on a limited scale, based on Morocco's current pricing per mcf (thousand cubic feet) of $11.40. “The Company will consider all options to monetize its asset during 2022,” it said in its statement.
The net capital expenses for Predator's 75% ownership in a CNG pilot development are $12.21 million, with operational costs of $2.3/mcf, according to the SLR Consulting report.
“The Guercif license covers an area of 7,269 km²,” according to the company.
“We are pleased to report the results of the CPR confirming the continuity of the MOU-1 and MOU-4 structures which has established material Contingent Gas Resources net to the Company of 295 BCF and an unrisked ENPV of US$592million,” said Paul Griffiths, CEO of Predator Oil & Gas.
Predator Gas Ventures Ltd contracted with the Star Valley Rig 101 to start drilling the MOU-1 well in northeastern Morocco on June 16, marking the start of Predator's Guercifdigging activities.
Seven days ago, Chariot, a British gas exploration company, announced a “promising” gas discovery at the Anchois-2 offshore well off Morocco's northern Larache coast. In an upbeat statement, the company said the significant gas discovery considerably surpassed its initial expectations.
Source: Morocco World News.