Predator Oil & Gas Holdings PLC (LSE:PRD) shares traded in positive territory in Monday morning’s deals after it announced an extension to an existing rig contract in Morocco, allowing the drilling of the proposed MOU-5 well between April and May.
The MOU-5 well is located in a prime area near the Maghreb Gas Pipeline, Predator highlighted, with the company pointing out the potentially significant infrastructure and cost advantages of the project.
Paul Griffiths, Predator’s executive chair, described it as “the perfect opportunity to accelerate the cost-effective and fully-funded drilling of a large Jurassic structure adjacent to our area of focus”.
“A successful MOU-5 drilling, testing, appraisal and development programme would potentially open up opportunities to exploit our onshore proximity to the Maghreb Gas Pipeline, which is located less than 10 kilometres from the MOU-5 drill site,” Griffiths said in a statement.
“This is a significant advantage for any future potential developer of a gas find as it will reduce capital infrastructure costs and the lead time to ‘first gas’.
“We also completed a very successful planning trip to Trinidad last month as a result of which we made significant progress towards establishing an operating and administrative presence.”