GCIPredator Oil & Gas showcases independent report highlighting helium potential Guercif
Predator Oil & Gas Holdings Plc () has highlighted the potential for helium at its Guercif project in Morocco, as detailed by an independent report completed by ScorpionGeoscience Limited.
The potential conventional prospective gross recoverable gas resources for the primary reservoir target in MOU-5 at Guercif were previously reported as being 5.916 trillion cubic feet,
Potential gross estimates of in-place helium on the same P50 upside case are 104.31 billion cubic feet, based on a global averaged scenario of 1.298% helium, and 598.88 billion cubic feet for the P10 upside case, based on a global averaged scenario of 4.066% helium.
The report draws on global analogues from a diverse range of available published geological settings to investigate the distribution and scale of naturally occurring helium resources and seeks to determine to what extent the MOU-5 structure in Guercif could potentially yield a commercial helium discovery.
Examples quoted include the supergiant Hassi R'Mel gas field in Algeria to the east of Guercif, and known to contain helium as a byproduct of methane gas production, and the Hugoton field complex in central USA.
The geological setting of Guercif means it is potentially possible helium could be sourced from crystalline basement, as in Tanzania, granitic intrusions, as in Corsica, or radiogenic volcaniclastic sediments, as at Hugoton.
The MOU-5 structure has several potential migration pathways, along fractures and faults, several potential reservoirs sealed by impermeable rocks, and adequate trapping in the form of a large structural closure.
Extracting helium from natural gas requires energy to cool the gas therefore the proportion of helium that can potentially be produced from natural gas as a commercially recoverable product will ultimately be dependent on variables such as price and technology used.
Separately, several advisers to Predator have requested to take shares for services to show their alignment with the company's strategy regarding the near-term drilling of MOU-5 and the assessment of the potential for helium in a large geological structure.
Accordingly, the company has issued just under 1.5 million new shares at a price of 0.0925p in lieu of adviser fees totalling £138,000.
"Given the potential size of the MOU-5 structure and its geological setting, this independent report on He potential enhances the case for the evaluation of potential helium presence in MOU-5,” said Paul Griffiths, chief executive Predator.
“Although at an early stage of evaluation, the opportunity to assess the ability to add value to an area development should not be missed.”
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Helium is one of the commodities of the moment, with projected demand set to rise significantly over the coming years. This report sets Predator up in good standing, ahead of further work, and goes to further highlight the huge potential that Guercif has to offer
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