LONGREACH OIL AND GAS LIMITED (TSX-V: LOI) (“Longreach”), an independent oil and gas company holding exploration licences in Morocco, is pleased to announce that the Koba-1 exploration well, in its operated licence area in the Essaouira Basin, onshore Morocco, has reached TD and has encountered a potential Lower Liassic sandstone reservoir with gas shows.
The well has been drilled to a Total Depth (TD) of 3,100m. The Lower Liassic sandstone was encountered very close to the expected depth and has a gross interval of approximately 45 metres showing reservoir potential. Over this section, gas shows of over 10% were encountered with heavier hydrocarbon components of over C5+.
After logging the Lower Liassic section, the well was drilled to TD to continue the exploration of the second target of the prognosed Triassic sandstones. No further potential reservoir sections or significant shows were encountered beneath the Lower Liassic.
The Koba structure is the first prospect to be drilled as part of Longreach’s exploration well programme. A portfolio of leads and prospects have been identified and, following the results of Koba-1, the outlook for further prospectivity will be reviewed.
Longreach has a 50% operated interest in the Sidi Moktar licence area covering 2,683 square kilometres. Longreach is partnered by ONHYM and MPE (25% carried interest each).
Commenting today, Dennis Sharp, Executive Chairman, said:
“This is a positive start to our operated exploration campaign in the Essaouira Basin, onshore Morocco, which is most encouraging. The Company is currently evaluating all of the available data in order to determine the testing program for the well. We look forward to gaining a fuller understanding of the result of the Koba well.”
Longreach is working closely with ONHYM, as a committed long-term partner, to unlock the hydrocarbon potential of the region.
For additional information, please contact:
|Jonathan Morley-Kirk||Chief Finance Officer||+44 153 462 6818|
|Pelham Bell Pottinger|
|Mark Antelme / Philip Dennis / Rollo Crichton-Stuart||+44 207 861 3232|
Additional information on Longreach Oil and Gas Limited can be found at www.longreachoilandgas.com or through Longreachs investor relations agent.
Additional information on Longreach Oil and Gas Limited can also be found at www.sedar.com.
Special Note Regarding Analogous Information
Although the Company believes that production on the Meskala field, which is adjacent to the Sidi Moktar licences, may indicate that production is possible, no assurance can be given by the Company that commercial production on any of the Sidi Moktar exploration licences will be achieved, or as to the levels of production that may be possible on any of the Sidi Moktar exploration licences if production is achieved.
Special Note Regarding Forwarding Looking Statements:
This press release contains forward-looking statements. These statements relate to future events or the Companys 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 planned well depth, length of drilling operations, drilling plans, planned spud date, expected success and benefits from drilling programme, the performance characteristics of the companys oil and gas properties and anticipated costs and risks associated with the drilling programme. 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; 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 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. 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 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.