The stock of British company Predator Oil & Gas Holdings PLC (PRD) experienced a significant decline, dropping by more than 30% on the London Stock Exchange on Friday. This downturn was attributed to a technical update concerning its Mou-3 well, drilled in the Guecif region of Morocco, which was deemed disappointing by investors.
The perforation operation at the Mou-3 well, notable for being the first to utilize large caliber cannons, successfully recovered nitrogen samples. These samples indicated that the reservoir had been reached. However, the company subsequently closed the well to monitor for any potential overpressure and to evaluate its purging capabilities.
In a released statement, Predator Oil & Gas acknowledged that the current observation phase is crucial for determining if the reservoir’s damage can be naturally mitigated over time. The company’s objective is to ascertain the reservoir’s capacity to generate sufficient pressure for commercial exploitation.
In light of these uncertainties, the group has announced plans for a new drilling operation, designated Mou-6. the design for this new well has been revised to circumvent the technical obstacles encountered during the Mou-3 drilling.Management emphasized that this upcoming well will be critical in assessing potential productivity
