Predator Oil & Gas Holdings PLC (LSE: PRD), the Jersey-based oil and gas company with operations in Trinidad and Morocco, has provided an update on preliminary testing of its MOU-6 well in Morocco, confirming that initial perforation did not yield gas inflow from the formation. The announcement states that combined low permeability and low gas saturations at the location are the most likely explanation for the absence of inflow. The company has suspended MOU-6 to allow for potential deepening to the TGB-4 interval, while focus shifts to partner negotiations and preparations for drilling in Trinidad.

Key Points

  • Predator Oil & Gas Holdings PLC (PRD), listed on the London Stock Exchange
  • MOU-6 well successfully perforated across 19.8 metres of the TGB-6 Fan interval from 825.7 to 845.5 metres, but nitrogen lift recovered only diesel and brine with no gas inflow
  • NuTech logs show significantly lower computed permeability, gas saturations and porosities at MOU-6 compared to MOU-1, MOU-3 and MOU-4; well suspended pending possible deepening to TGB-4
  • Investors should watch for outcomes of post-well studies, partner negotiations, and progress on the Snowcap-3 drilling programme in Trinidad

MOU-6 Perforation Completed but No Gas Inflow Recorded from TGB-6 Fan Interval

Predator reports that the MOU-6 well was perforated under-balanced using 4.5-inch TCP guns across 19.8 metres of the upper TGB-6 Fan interval. The MDT logging tool recorded a formation pressure of 1,195 psi at 813.27 metres depth, described as not fully stabilised. Nitrogen lift subsequently recovered only diesel and brine attributable to completion fluid, with no gas flowing from the formation into the wellbore. The company identifies combined low permeability and low gas saturations at this specific location as the most likely explanation, whilst noting that mechanical blockage and extreme low permeability remain possibilities requiring further investigation through post-well desktop and laboratory studies.

NuTech Log Comparison Highlights Variability Across Predator's Moroccan Well Portfolio

The final processed NuTech logs for MOU-6 reveal materially lower computed permeability, gas saturations and porosities relative to MOU-1, MOU-3 and MOU-4, with the company noting a close correlation between these log results and the observed well performance. Post-well analysis will be incorporated into a planned independent study of prospective unconventional gas potential across the area tested by MOU-1, MOU-3 and MOU-6. That study will include calibration against producing areas in eastern Romania and Western Ukraine, undertaken by specialists in those regions. Shallow gas shows of up to 2.69% have been sampled from MOU-6 for compositional analysis.

MOU-6 Satisfies Morocco Work Programme Commitment as Predator Eyes Deepening and Partners

The announcement confirms that MOU-6 has satisfied the remaining work programme commitment for the First Extension Period of the Petroleum Agreement in Morocco. Six wells have now been drilled in what the company describes as a previously undrilled frontier area, establishing prospective hydrocarbon plays predominantly in the Tertiary, with Jurassic and Triassic potential yet to be fully evaluated. The company states it will focus on unconventional gas well interventions, costing a programme to deepen MOU-5 to the Trias for thermogenic gas and potential helium, and assessing Jurassic potential in the western part of the licence area, whilst actively pursuing a capable exploration partner.

Predator Transfers Operations to Trinidad Ahead of Snowcap-3 Drilling Programme

Chief Executive Paul Griffiths confirmed in the announcement that the operating team is transferring to Trinidad, where the Snowcap-3 well is the focus of drilling preparations. Griffiths acknowledged disappointment that MOU-6 did not meet pre-drill expectations but described the well data as invaluable for calibrating gas potential identified through NuTech log analysis at earlier wells. The announcement also states that the first of two instalments of deferred consideration for the acquisition of the former Challenger Energy Group's business and assets in Trinidad in 2025 has been completed. The company did not disclose the financial value of that deferred consideration instalment in the announcement.