Predator Oil & Gas is looking for a partner to drill the Moulouya Prospect.

The Licence equity holders are Predator Gas Ventures Ltd., a wholly-owned subsidiary of Predator, 75% (operator) and ONHYM, the State oil company, 25%. ONHYM is carried through exploration but funds its pro-rata share of all costs upon a Declaration of Commerciality.

The Licence is for 8 years and is split into an Initial Period of 30 months; a First Extension Period of 36 months duration; and a Second Extension Period also of 30 months. After each Licence Period there is an opportunity to withdraw from the Licence without entering the next Licence Period.

In the Initial Period, the work programme comprises 250 kilometres of 2D seismic reprocessing and AVO analysis and the drilling of one well to a minimum depth of 2,000 metres. Desk-top geological and gas marketing studies will also be carried out. Seismic reprocessing costs are estimated to be US$150,000 and well costs US$2,000,000.

The fiscal terms in Morocco are restricted to a 5% State royalty for gas, applicable after the first 10.6 BCF of net production to the operator, and corporation tax charged at 31%. However, there is a 10-year “holiday” before corporation tax will be charged and any unused tax losses can be offset against the tax due. There are no signature bonuses but production bonuses in the form of cash payments exist with a maximum one-off payment of US$5,000,000 on production greater than 30,000 BOE/day. A discovery bonus of US$1,000,000 is also payable.

Gas prices in Morocco are currently higher than UK National Balancing Point (NPB) prices for domestic delivery. Any future gas exports will be priced at NPB prices.