Predator Oil & Gas says it is moving closer to drilling a new gas well in Morocco as the company looks to turn its discoveries in the country into production. In a business update, the British company said its planned MOU-6 well in the Guercif Basin has become a major focus of its strategy in Morocco. Predator said a new independent technical review has improved its view of the project’s chances of success.
The company said it has changed the way the well will be drilled, including adjustments to drilling fluids and equipment, to deal with problems that affected earlier operations.
The MOU-6 well is expected to be drilled to a depth of about 950 metres. Predator expects to receive an environmental impact assessment in July and complete the purchase of key equipment by early August.
The company also said it no longer sees a strong reason to bring in outside partners before drilling if that means giving up a large share of the project. Instead, it believes it can move forward with a small pilot development using compressed natural gas (CNG) or micro-LNG.
Predator estimates that such a project could require between $12m and $15m in initial investment. It would target industrial customers in the region, where gas demand is estimated at around 70 million cubic feet per day.
The company said the project’s value will ultimately depend on drilling results, testing, commercial viability, regulatory approvals and market conditions.
Predator owns a 75% stake in the Guercif licence, while Morocco’s national hydrocarbons agency ONYHM holds the remaining 25%.
The company believes the area could contain significant gas resources. Independent estimates put prospective gas resources in the main target structures at 393 billion cubic feet. Across several reservoir levels, the potential could reach as much as 1.5 trillion cubic feet if future drilling confirms the higher estimates.
The project comes as Morocco tries to increase local gas production and reduce its dependence on imported energy. The country currently imports more than 90% of its energy needs, while local gas production covers only a small fraction of demand. Morocco aims to reach annual gas consumption of about three billion cubic metres by 2030.
Predator is also working to increase production from its oil assets in Trinidad. The company said wells there could help generate cash flow that may later support the development of the MOU-6 project.
