Volatility persists in Predator Oil & Gas Holdings PLC (LSE:PRD) shares as it continues to trickle out results from its ongoing analysis of recently drilled wells in Morocco, with the latest update sending the explorer up around 30% in Thursday’s early deals.
Today, Predator said that its consultant’s wireline log analysis and reservoir characterisation of the MOU-4 well has suggested that three intervals are likely gas sands and these will now become the primary objectives in an upcoming test programme.
It comes after a prior statement on Tuesday informed investors that two of four original targets seen in initial drill results have been ruled out upon further analysis, which triggered an abrupt drop in Predator’s share price.
Predator chair Paul Griffiths noted that today’s findings relate to Jurassic-age plays, seen in this location as “shallow sands that were not previously considered to be potential drilling targets”, given that MOU-4 was positioned purposely at the edge of that geological play.
MOU-4 instead was located in order to be optimal for its primary targets, in the Moulouya Fan play, he added.
“Rigless testing of the Jurassic interval will be an important step in evaluating the significant Jurassic potential within our core area of interest," Griffiths said.
Evidently, more definitive performance data – which will come in the well testing programme – will be decisive to investor sentiments and the Predator share price.
Predator on Tuesday highlighted that it intends to advance to rigless testing of both the MOU-3 and MOU-4 wells in the coming weeks.
In London, Predator shares were up 44%, changing hands at 14.05p to recoup most but not all of the value lost with the week’s earlier disappointments. At the current price, the exploration company is valued in the market at just under £60mln.