Predator Oil & Gas Holdings Plc (LSE:PRD) has reported disappointing preliminary testing results from its MOU-6 well in Morocco, where successful perforation of the target formation failed to produce measurable gas inflow.
The Jersey-based energy company said the results suggest a combination of low rock permeability and low gas saturation at the tested location, although further technical investigations are planned.
Despite the outcome, Predator believes the additional geological and well data will support its assessment of potential unconventional gas resources across the licence area.
MOU-6 Testing Indicates Low Permeability and Gas Saturation
Predator successfully perforated a 19.8-metre gross interval of the TGB-6 Fan formation, between depths of 825.7 and 845.5 metres, using 4.5-inch tubing-conveyed perforating guns.
Formation pressure measurements recorded 1,195 pounds per square inch at a depth of 813.27 metres, although the reading had not fully stabilised.
Subsequent nitrogen-lift operations recovered only diesel and brine associated with the well completion fluids, with no formation inflow observed.
The company identified several possible explanations, including extremely low formation permeability, mechanical blockage caused by collapsed perforation tunnels, or a combination of low permeability and limited gas saturation.
Predator considers the latter explanation more likely, while severe formation damage is regarded as unlikely.
Final processed NuTech logs indicated substantially lower calculated permeability, gas saturation and porosity at MOU-6 compared with the MOU-1, MOU-3 and MOU-4 wells.
The company said these findings were consistent with the observed testing performance.
Additional Studies to Assess Unconventional Gas Potential
Predator plans to undertake laboratory and desktop studies using the newly acquired well data to investigate the reasons for the absence of gas inflow.
The results will also contribute to a planned independent assessment of prospective unconventional gas potential in the areas tested by MOU-1, MOU-3 and MOU-6.
This work will involve comparisons with producing gas regions in eastern Romania and western Ukraine.
MOU-6 has been suspended, allowing for the possibility of deepening the well to investigate the TGB-4 interval.
Shallow gas shows of up to 2.69% were also recorded, with samples collected for compositional analysis.
The company confirmed that completion of MOU-6 satisfied its remaining work programme obligations under the first extension period of the petroleum agreement.
Further Exploration Planned Across Moroccan Licence
Predator has drilled six wells across its Moroccan exploration area, identifying several prospective hydrocarbon plays, primarily within Tertiary formations.
The company intends to continue evaluating potential unconventional gas opportunities through further well interventions.
Other priorities include assessing the cost of deepening MOU-5 into the Triassic to investigate potential thermogenic gas and associated helium.
Predator also plans to examine Jurassic formations in the western part of the licence area for possible gas and oil potential.
Further drilling and two-dimensional and three-dimensional seismic surveys would be required to evaluate these opportunities.
The company is seeking a partner capable of supporting the next phase of exploration and providing additional investment.
Partner Discussions and Trinidad Drilling Become Priorities
Chief Executive Officer Paul Griffiths acknowledged that the MOU-6 results had fallen short of expectations.
“We are naturally disappointed that MOU-6 has not delivered in line with pre-drill expectations.”
However, the company believes the testing results will help improve its interpretation of geological data collected from earlier wells.
Predator said its immediate emphasis will shift towards negotiations with potential exploration partners.
Meanwhile, its operating team is preparing to transfer to Trinidad, where drilling preparations are focused on the Snowcap-3 well.
The company also confirmed completion of the first of two deferred consideration payments relating to its 2025 acquisition of the former Challenger Energy Group’s Trinidad business and assets.
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