Proactive Investors - Predator Oil & Gas Holdings PLC shares were on the backfoot in Tuesday morning’s deals after the company gave investors insight into the bureaucracy involved in obtaining explosives through Casablanca.
The company seeks to stimulate and then test its reservoirs within the Guercif project area onshore Morocco, though it is presently engaged more in paperwork to get the green light from the authorities.
It will be only the second time in the past 51 years that well this type of well perforation will have taken place in this part of Morocco.
Predator said, in a statement, that it has expressed in writing to Morocco’s Office National des Hydrocarbures et des Mines (ONHYM) declaring its intention to test MOU-1 and outlining the intervals it intends to test and giving the quantities of explosive required.
It said it has also written a letter to Morocco’s Ministry of the Energy Transition and Sustainable Development and to the Governor of the Guercif region regarding the programme.
Additionally, it will have to send a letter to the Regional Director of Energy and Mines to request a meeting with the committee in charge of the explosive authorisation.
The company will need to attend a meeting to agree the date when explosives will be transported under police escort from a bunker in Casablanca to the MOU-1 well site, and, agree when the programme will take place so that local authorities can track the explosive quantities used.
It will also hold a meeting with the local authorities in Guercif to explain the rigless well test perforating procedures and the proposed timescale.
The company told investors that this is normal practice in Morocco for the use of explosives in well operations.
The MOU-1 well was drilled in 2021. The timeline for the explosive work and the well test was not given by Predator.
Instead, executive chair Paul Griffiths said: "Once the regulatory process has been fully complied with the company will begin MOU-1 rigless testing at the very earliest opportunity.
“Options for the implementation of the next stage of drilling operations in Guercif are in the process of being finalised but are unlikely to be completed before the rigless MOU-1 well testing commences."
In London, Predator shares fell 7.7% to trade at 7.05p in Tuesday morning’s trade.