Predator Oil & Gas Shares Rallied 26.2% on MOU-3 Well Update
The value of Predator Oil & Gas Holdings PLC (LON: PRD) stock increased by 26.2% following the announcement of its update on drilling progress for the MOU-3 well in Morocco. The well has discovered abundant shallow gas reserves that are under high pressure.
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The focus of MOU-3 well is to extract gas from the Moulouya Fan's main reservoir, which has formerly been declared to hold conditional gas resources. Before installing the 95/8" casing, there was an influx of gas into the well, revealing that there is a noticeable amount of gas reserves close to the upper layer.
The organization found a significant stop in the drilling process between 339-350 meters down from the Kelly bushing (TVD KB), where the main source of gas was located. The configuration matched with an 11-meter-thick type of sand that was of high quality and not compacted, and the gas levels were higher in the sand than in other areas.
Predator Oil & Gas needed to slowly raise the mud weight to 1.25 S.G., which is higher than the amount needed to balance the hydrostatic pressure. This was done in order to decrease the amount of gas flowing into the well. At the moment, the gas zone is experiencing overpressure (122 psi over the normal amount of pressure) and is likely being held up by a connection to a gas volume that is providing the necessary pressure support.
The business came across a second layer of fine sand at a depth of 750 meters. This particular layer showed a 2.42% formation gas. The management of the company, with their experience, were able to securely place a 95/8" casing at a depth of 764 meters. This was done in order to secure the two newly located gas areas, one of which is overpressured, that were not previously expected prior to drilling.
According to Predator Oil & Gas, the cost of drilling stayed within the anticipated budget, and the drilling process is progressing faster than expected.
The leader of Predator Oil & Gas, Paul Griffiths, made a statement saying that it is possible for there to be unexpected high-pressure gas near the surface in a new area of sedimentary rock that has not been thoroughly explored. However, he also thanked the team in charge of the drilling, Lonny Baumgardner and Moyra Scott, for their skill and expertise in overcoming this difficulty. Without their knowledge and experience, the situation could have escalated into a major problem.
The existence of a low-pressure gas layer covered by a good seal has helped discover two possible gas storage locations previously unknown before drilling. What's even more important is that the pressurized gas has confirmed the stability of shallow traps and revealed a direct route for deep gas to move into the next six targets that will be assessed by MOU-3.
Please note that the following information is not intended to be construed as investment advice.
The graph displaying the Predator Oil & Gas (PRD) stock value.
The value of Predator Oil & Gas (PRD) stocks increased by 26.23%, reaching 7.70p compared to the previous day's closing cost of 6.10p.
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