Predator Oil's Commitment to the Guercif Gas Project
Despite facing a series of mixed results from its exploration activities, Predator Oil & Gas Holdings has signaled its intention to continue investing in the Guercif gas project in Morocco. Initially, by late October 2025, the company had contemplated selling its 75% stake in the Guercif gas prospect, which it operates alongside the Office National des Hydrocarbures et des Mines (ONHYM). The British firm’s annual report for 2025, released on April 30, indicates a renewed commitment to the project as they navigate through a challenging landscape marked by underwhelming drilling outcomes.
The MOU-5 well, drilled in March 2025, did not meet expectations, as the targeted geological formations were found to be 233 meters deeper than anticipated, exceeding the structural closure limits. However, the report clarified that this outcome does not negate the basin's potential. This disappointing result followed the MOU-4 well, drilled in 2023, which also yielded commercially unviable results.
In a strategic shift, Predator has entered negotiations for a joint-venture agreement with a partner willing to finance the drilling of a new well, MOU-6, as well as a pilot project to monetize gas production. The proposed agreement includes reimbursement of up to $24.6 million for past exploration costs associated with the MOU-1 through MOU-5 wells. Stephen Boldy, the company's non-executive chairman, emphasized their commitment to collaborating for the potential evaluation and gradual development of discovered gas within the MOU-1 and MOU-3 structures.
License Renewal and Helium Potential
The Guercif license’s first extension period is set to expire on November 5, 2026. Predator must submit a request for an exploitation concession before October 2026 to move into the second extension period, or risk losing its rights to the expansive 4,301 km² area. According to their report, the confirmed net resources on the primary target TGB-6 are estimated at 61.95 billion cubic feet, while the overall basin potential is projected at 5.9 trillion cubic feet.
Interestingly, the MOU-5 well has also revealed potential helium resources, estimated between 104 and 599 billion cubic feet as assessed by Scorpion Geoscience. The exploration and development of helium will necessitate a separate regulatory and licensing agreement with ONHYM through its mining department, according to company statements. This development opens new avenues for Predator Oil, indicating a broadened focus that could enhance their operational prospects in the region moving forward.
As reported by agenceecofin.com.
