Predator Oil & Gas Holdings PLC (LSE:PRD) gained around a third in value on Tuesday after it found “significant shallow over-pressured gas” at its MOU-3 well in Morocco.
An inflow of gas was experienced at 339 to 350 metres, where the company found it was significantly over-pressured (122 psi), a drill update revealed.
Additionally, at 750 metres a thin layer of sand was found to contain 2.42% gas.
These findings were not expected according to the group's research at its MOU-1 and MOU-2 drills.
Paul Griffiths, chairman at Predator, said: “Unforeseen over-pressured gas at shallow depths is always a potential hazard in a new poorly explored sedimentary basin.
“I would like to thank our experienced drilling management team for… their extensive drilling experience in what could have developed into a very serious operational challenge.”
The company was able to safely set a 95/8” casing at 746 metres protecting the gas layers in what was described as a “difficult and challenging exercise”.
The Predator chair added: “Of even greater significance is that the over-pressured gas has validated shallow trap integrity and identified a clear path for the migration of deep gas into the next six targets to be evaluated by MOU-3.”
Despite the finding of over-pressured gas, Predator said it will not cost extra or delay current plans.