Exploration programme and funding plans continue to advance Q1
2014 results published
SAINT HELIER, Jersey, May 30, 2014
/PRNewswire/ - During the first quarter of 2014, LONGREACH OIL AND
GAS LIMITED (TSXV: LOI) (the Company or Longreach) outlined
detailed results of its first exploration well in Morocco, Koba-1, and commenced drilling of its
second exploration well, Kamar-1, which subsequent to the
quarter-end encountered two prospective natural gas zones in the
Sidi Moktar licence in the Essaouira Basin of the North African
nation.
"Our first two exploration wells captured
extensive geological and petrophysical information that has helped
define the presence of natural gas in the targeted Lower Liassic
formation and the Lower Dogger/Upper Liassic formations. These
promising results that have set the foundation for the planning we
currently have underway to continue our exploration work in 2014.
We ended the first quarter with cash of US$3.2 million. Subsequent to quarter end, in
April 2014, we completed a private
placement that raised CAD$9.7
million, which permitted the Company to continue with its
contracted drilling activities of the Kamar-1 well. We continue to
evaluate the results of our first two wells - Koba-1, drilled in
late 2013, and Kamar-1 completed in May
2014. We are commencing discussions with investors to obtain
further financing of additional exploration work in 2014," said
Dennis Sharp, Longreach's Executive
Chairman.
Longreach today filed its financial statements
for the quarter ended March 31, 2014,
together with its Management's Discussion and Analysis in respect
of the Company's financial results for the quarter ended
March 31, 2014. These documents are
available on the Longreach website at www.longreachoilandgas.com or
under the Company's profile on SEDAR at www.sedar.com.
Highlights
Financial:
- Cash position as at March 31,
2014, of US$3.2 million
(US$12.7 million as at December 31, 2013)
- Working capital deficit as at March 31,
2014, of US$2.8 million
(US$3.9 million working capital
surplus as at December 31, 2013)
- Subsequent to the quarter-end, completed an interim debenture
financing of CAD$9.7 million in
April 2014 and intends to obtain
further financing in 2014, which may include a rights offering or
private placement
Operations Summary:
- Sidi Moktar:
-
- On March 20, 2014, the Company
commenced drilling of the Kamar-1 well, targeting a Lower Liassic
reservoir and Triassic clastic reservoirs. Subsequent to the
quarter-end, the Kamar-1 well was drilled to a final total depth of
2,790 metres and intersected two distinct gas-bearing intervals.
One is in the targeted Lower Liassic natural gas zone and has a
gross interval of 110 metres as defined by petrophysical,
wireline logs. The other is defined by the presence of significant
natural gas volumes in the drilling mud within the Lower
Dogger/Upper Liassic zone, which occurs over a gross interval of
approximately 100 metres
- Following the Kamar-1 well, the Company will review the forward
operational programme.
- Sidi Moussa Offshore:
-
- Longreach has been advised that the operator, Genel Energy plc
(Genel), has secured a rig to drill an exploration well targeting
the Mid-Jurassic and Lower Triassic reservoirs in the third quarter
of 2014. Longreach holds a 1.5 percent working interest in this
exploration block.
About Longreach
Longreach is an independent Canadian oil and gas company focused on
its significant land position in Morocco. The Company has a 50 percent operated
interest in the Sidi Moktar licence area covering 2,683 square
kilometres and is working closely with ONHYM as a committed
long-term partner to unlock the hydrocarbon potential of the
region. Morocco offers a
politically stable environment to work within and has favourable
fiscal terms to energy producers. Longreach is a public company
listed on the TSX Venture Exchange under the symbol "LOI".
Additional information about the Company can be
found at www.longreachoilandgas.com and under the Company's SEDAR
profile at www.sedar.com.
Special Note Regarding Forward Looking
Statements
This press release contains forward-looking statements. Such
forward-looking statements relate to future events or the Company's
future performance. All statements other than statements of
historical fact are forward-looking statements. Forward-looking
statements are often, but not always, identified by the use of
words such as "may", "will", "should", "expect", "plan",
"anticipate", "believe", "estimate", "predict", "project",
"potential", "targeting", "intend", "could", "might", "continue" or
the negative of these terms or other similar terms. Forward-looking
statements in this press release include, but are not limited to,
statements regarding the drilling of the Karmar-1 well at the
Company's operated Sidi Moktar onshore license area in Morocco; the ability of the Company to
successfully complete the drilling programme at Kamar-1 over the
next few weeks; the completion of evaluations and processing and
interpretation of data, the performance characteristics of the
Company's oil and gas properties, capital expenditure programmes,
supply and demand for oil, gas and commodities, prices for oil and
gas, drilling plans, and realization of the anticipated benefits of
acquisitions.
Forward-looking statements are only predictions.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause actual results or
events to differ materially from those anticipated in such
forward-looking statements. Some of the risks and other factors
which could cause results to differ materially from those expressed
in the forward-looking statements contained in this press release
include, but are not limited to: general economic conditions in
Canada, the Kingdom of
Morocco and globally; completing
the proposed drilling programme at Kamar-1 in a timely and fiscally
prudent manner; industry conditions, including fluctuations in the
price of oil and gas, governmental regulation of the oil and gas
industry, including environmental regulation; fluctuation in
foreign exchange or interest rates; risks inherent in oil and gas
operations; political risk, including geological, technical,
drilling and processing problems; unanticipated operating events
which could cause commencement of drilling and production to be
delayed; the need to obtain consents and approvals from industry
partners, regulatory authorities and other third-parties; stock
market volatility and market valuations; competition for, among
other things, capital, acquisitions of reserves, undeveloped land
and skilled personnel; incorrect assessments of the value of
acquisitions or resource estimates; any future inability to obtain
additional funding, when required, on acceptable terms or at all;
credit risk; changes in legislation; any unanticipated disputes or
deficiencies related to title matters; dependence on management and
key personnel; and risks associated with operating in and being
part of a joint venture.
Although the forward-looking statements
contained in this press release are based upon factors and
assumptions which management of the Company believes to be
reasonable, the Company cannot assure that actual results will be
consistent with its expectations and assumptions. Material factors
and assumptions which management of the Company has considered in
connection with making the forward-looking statements in this press
release include that the Company will be able to successfully
complete the drilling programme at Kamar-1 and to successfully
evaluate, process and interpret data. Undue reliance should not be
placed on the forward-looking statements contained in this news
release as there can be no assurance that the plans, intentions or
expectations upon which they are based will occur. These statements
speak only as of the date of this press release, and the Company
does not undertake any obligation to publicly update or revise any
forward-looking statements except as expressly required by
applicable securities laws.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
This news release does not constitute an
offer to sell or a solicitation of an offer to buy any securities
of Longreach in any jurisdiction in which such offer, solicitation
or sale would be unlawful. The securities referred to herein have
not been and will not be registered under the United States
Securities Act of 1933 (the "U.S. Securities Act") or any state
securities laws and may not be offered or sold within the United States or to U.S. Persons (as
defined in the U.S. Securities Act) unless registered under the
U.S. Securities Act and applicable state securities laws, or an
exemption from such registration is available.
SOURCE Longreach Oil and Gas Limited