Predator Oil & Gas Confirms Domerian Carbonate Target in Morocco, Plans 3D Seismic
Why we think this is neutral
The preliminary drilling results from the MOU-5 well in Morocco are mixed. While the company successfully drilled the well within budget and confirmed the presence of the Domerian carbonate target, the target was encountered significantly deeper than expected due to the presence of mobilized salt. Additionally, the lack of detailed petrophysical and petrographic analysis limits the ability to fully assess the reservoir quality and potential commerciality. The discovery of a new sand interval is positive, but its significance is unclear. Overall, the results are promising but require further evaluation, warranting a neutral sentiment score.
Key Points
- Successful drilling of MOU-5 well within budget and timeline
- Confirmation of Domerian carbonate primary target
- Helium show and discovery of new sand interval below primary target
- Domerian carbonate encountered significantly deeper than prognosed due to mobilized salt
- Plan to acquire 3D seismic data through farmout process
Summary
Predator Oil & Gas Holdings Plc (PRD) has announced preliminary drilling results from the MOU-5 well in the Guercif Licence in Morocco. The company successfully drilled and logged the well within the pre-drill budget and timeline, confirming the presence of the Domerian carbonate primary target. However, the target was encountered significantly deeper than prognosed due to the presence of mobilized salt above, which could impact the potential commerciality. The well also encountered a helium show and a previously unseen good quality sand interval below the primary target, but the significance of these findings requires further evaluation. The company plans to acquire 3D seismic data through a farmout process to better characterize the Domerian carbonate reservoir. The broker targets are not mentioned in the RNS.