Predator is already thinking about monetizing its deposit in Guercif

To monetize its deposits in Morocco, Predator qualified the track of Compressed Natural Gas.

2022 is a busy year for Predator Oil and Gas. The British gas exploration company intends to carry out tests on its MOU-1 gas field, located in the Guercif permit, during this first half and before up to two wells on the MOU-4 in the same region. Successful tests could confirm raw resources estimated at 393 billion cubic feet of marketable gas, according to the junior. Predator is also considering the option of early monetization of this deposit in the form of a highly scalable CNG (Compressed Natural Gas) project. With Moroccan gas prices to industrial customers demonstrated above $11 per million cubic feet, the company estimates that such a project could be worth at least $32 million in its pilot version and up to $197 million net for the company in the case of a development on a larger scale. Regarding the drilling of the two wells on the MOU-4, the costs should reach 5 to 6 million dollars, according to the company, the costs being low in Morocco compared to other countries.

To finance this work, Predator announces that it could act independently rather than calling on a partner. The company’s assumptions show a value of $148 million for the MOU-4. However, in order, to monetize the asset faster, Predator also favors a highly scalable CNG pilot supplying gas to the Moroccan industrial market. “We calculated that a 5 million cubic feet per day CNG pilot project could provide net cash flow of more than $10 million per year by 2024 and a NPV (net present value) of nearly $32 million. On a similar basis, if the project reaches 10 million cubic feet per day, it should be worth over $71 million net to the company and $197 million if it delivers 25 million cubic feet per day.




Fr

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