Predator Oil & Gas, a British company, has commenced drilling its sixth well in the Jersif region of Morocco. The well, named MOU-6, is located in the company's gas license area, which covers an area of 7,269 square kilometers. The drilling process is expected to take up to 20 days to complete. The company's efforts aim to confirm the presence of 2.7 billion cubic meters of gas in the region.
The Jersif region has been a focus of Predator Oil & Gas's exploration efforts since 2021, with five wells previously drilled in the area. While these wells have indicated the presence of gas, none have proven commercial production levels. The sixth well will target the same geological formations as the previous wells, but with a modified technical design aimed at avoiding previous problems.
Predator Oil & Gas holds a 75% stake in the Jersif license, with the Moroccan National Office for Hydrocarbons and Mining (ONHYM) holding the remaining 25%. The company obtained the license in late 2018 and began drilling operations in 2021. The current drilling campaign is being conducted using the Rig 101 drilling platform, which is operated by Intrepid Drilling Limited.
The drilling process is taking place under a tight deadline, with the company's financial situation needing to be justified to the Moroccan authorities by September 30. This is a necessary step to secure the renewal of the Jersif license, which expires on November 5. Predator Oil & Gas is also relying on revenue from its production portfolio in Trinidad and Tobago to support its exploration activities in Morocco.
According to a technical report by Scorpion Geoscience Limited, a successful drilling campaign could lead to additional production of 2.7 billion cubic meters of gas. The company plans to market the extracted gas in compressed form to industrial customers in Morocco, using trucks to transport the gas under high pressure. There are also long-term plans to connect the site to the Morocco-Europe pipeline.
Morocco currently imports almost all of its gas needs, making the Jersif project an important part of the country's efforts to develop domestic gas supplies and reduce its reliance on imports. The project has faced delays due to technical and financial constraints, as well as logistical issues related to the conflict in the Middle East.
The company considers Morocco's local gas prices and tax conditions to be among the most favorable in the world for investors in the sector. This includes a 10-year tax exemption from the start of production, as well as a royalty of no more than 5% on produced gas.
Key points
- Predator Oil & Gas begins drilling sixth well in Morocco's Jersif region.
- The well aims to confirm 2.7 billion cubic meters of gas in the region.
- The project is part of Morocco's efforts to develop domestic gas supplies and reduce reliance on imports.
