Preparation of the MOU-5 well pad has commenced on Guercif licence. (Image source: Predator Oil & Gas)

Jersey-based oil and gas company, Predator Oil & Gas Holdings Plc, is well on its way to begin drilling onshore Morocco around 25 February as civil engineering work to improve access roads and prepare the MOU-5 well pad has commenced on its Guercif licence at the MOU-5 drill site

This is part of the company's ambitous Guercif Compressed Natural Gas (CNG) project.

The CEO of Predator, Paul Griffiths, is hopeful that the Titanosaurus structure may be 'potentially transformational to the Company's already diversified asset base in a success case'. The potentially high-impact structure that it will be drilling lies right next to an existing gas infrastructure. Fiscally speaking, the company considers this a 'rare opportunity' given the dwindling gas storage reserves in Europe this winter and geopolitical concerns over security of gas supply.

Golden age for gas exploration

"Our hydrocarbon sector has seen a global resurgence of interest and activity outside of the UK and Europe over the past few months led by the United States, Norway, Middle East, Africa and Far East.

"We are potentially entering a 'golden age' for gas exploration and production to support: the energy transition by lowering CO2 emissions through replacing coal and oil; and to ameliorate energy price rises by increasing supply and security of access to gas at "crunch" times, when renewable energy cannot cope due to unattractive weather conditions.

"It is not often that macro geopolitical and economic factors align with a gas development strategy. We are currently in that cycle and ready to attempt to take advantage of it," said Griffiths. 

Predator takes gas production seriously as it considers development finance required for 'First Gas' from Morocco, besides aiming to supply CNG to the Moroccan industry. 

Kapana 1-X exploration well located on Block 2813B under PEL 90. (Image source: Sintana Energy)

Chevron has reported to have not found commercial hydrocarbons from the Kapana 1-X exploration well located on Block 2813B under Petroleum Exploration License 90 (PEL 90)

This comes after Shell's write down on PEL39. 

Operated by Chevron-subsidiary Harmattan Energy Limited, PEL 90 also includes Custos Energy-subsidiary Trago Energy with a 10% interest. 

Valuable geologic insights

Chevron, however, has acknowledged the data acquired from exploration operations as hopeful in terms of future programme on PEL 90. “The geologic insights and improved confidence in the future programme on PEL 90 from these operations provides strong support for continued progress and value in our portfolio in Namibia’s Orange Basin,” said Knowledge Katti, chairman and CEO of Custos. 

“We look forward to the many opportunities ahead to further unveil the quality of our unmatched position in the heart of the Orange Basin including the future activity on PEL 90 and the ongoing activity on PEL 83”. added Robert Bose, CEO of Sintana Energy, which enjoys a 49% indirect interest in Custos Energy.

The Mopane 1X well testing operations on PEL83 showed significant oil columns containing light oil in high-quality reservoir sands at two different levels: AVO-1 and AVO-2.

The company has completed major acquisitions. (Image source: Adobe Stock)

Trident Energy has completed the acquisition of the entire issued share capital of Chevron Overseas (Congo) Limited, as well as an additional working interest in the Nkossa and Nsoko II fields from TotalEnergies, resulting in an 85% working interest in the Nkossa and Nsoko II fields, and a 15.75% working interest in the Lianzi field

The company will become the operator of these fields. In addition, Trident Energy has acquired a 21.5% working interest in the Moho–Bilondo field, operated by TotalEnergies. The acquisition, which was announced in April 2024, is expected to add c.30,000 bopd. It is a significant deal for Trident Energy which has proven expertise in extending field life and unlocking production from mid-life assets as demonstrated by their takeovers in Brazil and Equatorial Guinea.

Jean-Michel Jacoulot, Chief Executive of Trident Energy ML said, “We are extremely pleased to have completed the acquisition which marks a new chapter in our history. We are excited to enter the Republic of Congo, take over the operations and deliver the full potential of these assets. We look forward to working with TotalEnergies Congo, the SNPC and the Congolese Government to generate further value to the assets. We would like to take the opportunity to thank the Ministry of Hydrocarbons, and the Government for their support on this transaction”.

Shell CEO says that Namibia's acreage was 'very challenging'. (Image source: Adobe Stock)

The much anticipated petroleum exploration license-PEL39 offshore Namibia turned out to be a disappointment for Shell, as the company announced the discovery a write down of approximately US$400mn, reported Reuters 

Speaking about the discovery, the British oil major is reported to have said that the resources from the block 'cannot currently be confirmed for commercial development'. According to Shell CEO, Wael Sawan, Namibia's acreage was 'very challenging', with lower permeability of the rock making exploration difficult. The company is said to have faced wide ranging challenges in the technical and geological fronts, topped by high natural gas presence. Experts believe that having to deal with gas presence even before oil could be produced is no mean feat and requires costly engineering solutions. High gas presence at the beginning of production means once it fizzles out, reservoir pressure sees a sharp decline, rendering oil production a dicey job. 

'Not a setback'

'While we recognise that extracting the discovered resources presents challenges, the extensive data collected shows that there remain opportunities. Together with our partners, we are continuing to explore potential commercial pathways to development, while actively looking for further exploration opportunities in Namibia', read a statement from the company.

This comes as a discord as PEL39 has been very giving since 2022, when Shell and its partners, QatarEnergy and the National Petroleum Corporation of Namibia-NAMCOR made their first discovery in the region. Several others have followed as Shell drilled nine wells in the licence over the last three years. 

Growing global interests from exploration and production companies such as QatarEnergy, Chevron and Galp, to name a few, have set off a whole oil & gas ecosystem in the region, with tech giants Halliburton and Baker Hughes opening facilities, and high stakes logistics contracts coming into effect. 

"It is not a setback. We are positive that the remaining potential of PEL39 and other exploration campaigns will translate into commercial developments," said Namibia's Ministry of Mines and Energy in a statement on Shell's decision.