Shares of Predator Oil & Gas Holdings PLC (LSE: PRD) fell by approximately 15% in Tuesday’s morning trading session following the release of its most recent well data analysis for the MOU-4 well in Morocco.
An initial analysis of the drill results revealed four prospects, but two of these have now been discounted due to wireline data analysis. One prospect was dismissed due to a lack of “structural closure”, while poor borehole conditions affected the other, as per the company’s latest statement.
The exploration firm now plans to proceed with ringless testing on the MOU-3 and MOU-4 wells in the weeks ahead.
According to a consultant’s analysis, Predator believes that there are about 43 metres of “probable” gas pay in the MOU-3 well data.
Paul Griffiths, the executive chair, commented, “The MOU-4 well has validated the existence of the Moulouya Fan southeast of its earlier mapped scope.”
Griffiths also expressed satisfaction with this year’s drilling results and is anticipating a thorough ringless testing programme to help ascertain potential gas flow rates and gas volumes linked to the present well inventory.
In the London market, Predator’s shares dipped by 2p or 14.76%, trading at 11.72p per share, bringing the exploration firm’s market value to slightly above £49 million.