Predator Oil & Gas shares crash following poor Morocco test results

Predator Oil & Gas shares crashed on Friday after announcing its MOU-6 well in Morocco failed to produce gas during testing, citing low permeability and low gas saturation at the location as the most likely explanation.

The well was perforated over 19.8 metres of the upper TGB-6 Fan, between 825.7 and 845.5 metres, but a nitrogen lift recovered only diesel and brine from the completion fluid, with no inflow from the formation.

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A formation pressure of 1,195 psi was recorded at 813.27 metres, though the reading had not fully stabilised.

Predator said final processed logs showed much lower permeability, gas saturation and porosity than at MOU-1, MOU-3 and MOU-4, and correlated closely with the well’s performance.

Collapsed perforation tunnels were highlighted as a possible cause while severe formation damage was considered unlikely. As a result, MOU-6 has been suspended.

“We are naturally disappointed that MOU-6 has not delivered in line with pre-drill expectations,” said Paul Griffiths, Chief Executive Officer.

“However, the first successful perforation of the target formation and the well data collected is invaluable in terms of helping to calibrate the potential for gas interpreted by NuTech log analysis in MOU-1, MOU-3 and MOU-4.“

Having now drilled six wells, next steps include well interventions to test the unconventional gas case, deepening MOU-5 to the Triassic to assess thermogenic gas and associated helium, and evaluating the Jurassic in the licence’s western part.

Predator said further drilling and 2D and 3D seismic would be needed, and that it intends to bring in a partner to fund and take exploration forward.

Predator Oil & Gas shares were down 35% at the time of writing, on Friday at 0.85p, rounding off a disastrous month. The stock was worth 3.10p on 1st October.