The Predator Oil & Gas Holdings PLC (LON: PRD) share price rallied 26.2% after releasing the interim drilling update for the MOU-3 well in Morroco, where it encountered significantly overpressured shallow gas reserves.
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The MOU-3 well targets the Moulouya Fan primary reservoir with previously announced contingent gas resources. The company encountered an inflow of gas into the well before installing the 95/8″ casing, demonstrating the significant gas reserves available near the surface.
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The company identified a substantial drilling break from 339 to 350 metres TVD KB as the primary gas source. The structure correlated well with an 11-metre-thick, good-quality, unconsolidated sand with elevated background gas readings.
Predator Oil & Gas had to gradually increase the mud weight to 1.25 S.G., above that required to balance hydrostatic pressure to reduce gas inflow into the well. The gas zone is currently overpressurised (122 psi overpressured) and is likely supported by connectivity to gas volume to provide pressure support.
The company encountered a second thin sand with a 2.42% formation gas show at 750 metres TVD MD. The firm’s experienced management team safely set 95/8″ casing at 764 metres TVD MD to protect the two new gas horizons, including the overpressured interval, that were not anticipated pre-drill.
Predator Oil & Gas further noted that drilling costs remained within the forecasted budget, with the drilling being ahead of schedule.
Predator Oil & Gas Executive Chairman Paul Griffiths commented: “Unforeseen overpressured gas at shallow depths is always a potential hazard in a new poorly explored sedimentary basin. I would like to thank our experienced drilling management team, Lonny Baumgardner and Moyra Scott, for overcoming successfully, using their extensive drilling experience, what could have developed into a very serious operational challenge.”
Adding:
“The presence of shallow overpressured gas with an effective sealing caprock has added to the identification of two new potential gas reservoirs that were not known about pre-drill. Of even greater significance is that the overpressured gas has validated shallow trap integrity and identified a clear path for the migration of deep gas into the next six targets to be evaluated by MOU-3.”
*This is not investment advice.
The Predator Oil & Gas (PRD) share price chart.
The Predator Oil & Gas (PRD) share price surged 26.23% to trade at 7.70p, from Monday’s closing price of 6.10p.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.