Highlights:
- MOU-3 rigless testing programme being extended
- Zenith Energy Limited (Aberdeen) appointed to provide additional well engineering support as operations expand
- MOU-5 helium study completed - potential resources estimates this month
- Acquisition of additional 16.2% equity for zero cash consideration in Cory Moruga approved
- Memorandum of Understanding executed for application of patented Saudi Arabian chemical wax treatment in Trinidad
Predator Oil & Gas Holdings, the Jersey-based Oil and Gas Company with near-term hydrocarbon operations focussed on Morocco and Trinidad has announced a corporate update.
Morocco
MOU-3 Sandjet rigless testing programme update
The rigless testing programme is being extended based on an initial analysis of the 2024 rigless testing data that is currently being carried out by Dr. John Tingas Petroleum and Chemical Engineer. Dr. Tingas has worked with the Company's CEO on reservoir engineering projects offshore Ireland following the successful testing of gas at commercial rates in 2006 and 2007; on the reservoir engineering for the Tendrara field onshore Morocco in 2013, following which an appraisal well flowed at a high rate; and on the Company's Inniss-Trinity CO2 EOR project in Trinidad, where enhanced oil production was achieved.
The Company is fully funded to undertake all additional operations that may be considered necessary to support reservoir flow assurance for the purposes of planning a potential development option.
Appointment of Zenith Energy Limited (Aberdeen) for well engineering support
Zenith Energy Limited (Aberdeen), with their larger pool of worldwide resources to call upon in the areas of well engineering, project management, completion and well testing and well operator services, have been appointed to provide well engineering support for Morocco initially and potentially other geographic areas if and when required.
MOU-5 well and potential for helium
The geological model for the helium potential of the 187 km2 MOU-5 structure has been completed by Scorpiongeoscience. Potential helium resources estimates will be published this month.
Drilling of the high impact MOU-5 well will evaluate potential both for helium and a gas-to-power project adjacent to the Maghreb Gas Pipeline. MOU-5 is a conventional well that does not require the same specialist Rharb Basin drilling experience and expertise that was necessary to successfully complete the 2021 and 2023 drilling programmes.
Trinidad
Memorandum of Understanding for patented Saudi Arabian chemical wax treatment
The Company has executed a Memorandum of Understanding with a local company to apply a patented wax treatment originating in Saudi Arabia to the Jacobin-1 oil reservoirs.
Jacobin-1 well workover
An oil sample has been collected from Jacobin-1 well and sent to an in-country laboratory to carry out a wax analysis.
On sampling the oil in Jacobin-1 reservoir pressure was also found to have increased to over 1600 psi over time from when two of five potential oil zones were perforated but not produced by the previous operator. Reservoir pressure is encouragingly now similar to that of the original pressure of the adjoining Moruga West Field prior to its development.
Adjacent wells in the Moruga West oil field have initially flowed 60 bopd from just one of the above five reservoir intervals penetrated by Jacobin-1.
The proposed chemical treatment for Jacobin-1 will simultaneously apply heat and release nitrogen in the oil reservoirs to potentially provide a sustainable increase in oil flow into the well bore.
In the Saudi Arabian examples the chemical wax treatment has shown to increase oil flow rates by up to threefold.
A successful wax treatment of Jacobin-1, followed by Snowcap-1, may have a significant implication for potentially increasing cash flow from low-cost well workovers, particularly as the Company has US$ 55 million of inherited tax losses in Trinidad to offset against Petroleum Profit Tax. Falls in oil price below WTI US$70 per barrel are offset by the disapplication of 18% Supplementary Petroleum Profit Tax below this spot price.
Increase in equity in Cory Moruga Licence approved
The Company has received the Ministry of Energy and Energy Industries consent for the acquisition of the remaining 16.2% interest in the Cory Moruga Licence for a zero cash consideration.
Paul Griffiths, Chief Executive Officer of Predator, commented:
'The Company's operations are progressing smoothly. Maintaining fiscal discipline allows us not only to be fully funded for all our firm commitments for the next 12 months but also provides us with discretionary cash flexibility to strengthen elements of our work programmes, if necessary, to apply different technologies to potentially enhance reservoir performance and de-risk flow assurance of oil and gas.
The Company's foundations are based on three pillars: fiscal discipline; project diversity and flexibility from exploration through appraisal to development and production; and the ability to add near-term producing assets for minimal or zero cash consideration.
The flexibility for drilling the giant 'World Class' MOU-5 structure with the added potential of realising a helium play is an exciting near term prospect.'
Source: Predator Oil & Gas
