Morocco approves Predator Oil & Gas exploration licence application

The Morocco government has approved Predator Oil & Gas’ application for a licence for hydrocarbon exploration and appraisal onshore northern Morocco.

The company’s application for the exclusive licence has been accepted by the Office National des Hydrocarbures et des Mines (ONHYM) on behalf of the government.

Predator Oil & Gas will receive the formal award of the license on the provision of a bank guarantee.

The licence will be valid for eight years and divided into three phases. The company will have rights over the licence for an initial period of 30 months. The second extension period is for 36 months, while the third spans 30 months.

Covering an area of 7,269km², the license contains the Guercif Permits I, II, III and IV, located east of the producing gas fields of the Gharb Basin.

The company will operate the licence through its subsidiary Predator Gas Ventures with 75% equity interest. ONHYM will own the remaining 25% stake and holds the right to ‘back-in’ for up to and including 25% equity in case of a hydrocarbon development through payment of its share of forward costs.

Predator Oil & Gas CEO Paul Griffiths said: “Predator management selected Guercif based on its 12 years’ experience of exploring and financing Moroccan opportunities.

“It represents an asset that will fit very well with the Company’s strategy of developing gas opportunities adjacent to infrastructure, where the geological and commercial risks can be shown to be low.

“Guercif represents a high impact, low cost, near-term drilling opportunity in a sophisticated and stable business and operating environment that is well understood by management.”

During the initial period, the company plans to undertake a work programme comprising 250km of reprocessing of existing seismic data and the drilling of one well to a minimum depth of 2,000m.

The objective of the programme will be to test a large seismic anomaly said to be indicative of the presence of shallow Tertiary gas, just as the Gharb Basin.

This license is also prospective for Triassic gas and Jurassic oil and gas, which the company plans to evaluate during the first and second extension periods.