July 04, 2014
Corporate Presentation June 2014
May 30, 2014
Q1 2014 Financial Statements
May 30, 2014
Q1 2014 MD&A

Sidi Moktar

Background

Longreach has a 50% working interest and is Operator of the Sidi Moktar licences. Located within the Essaouira Basin in central Morocco which has been producing onshore gas since 1950's, Sidi Moktar comprises of 3 blocks totalling 4,499 square kilometres. The blocks surround the producing Meskala field (Morocco's major producing field). 4 fields within Sidi Moktar have successfully produced 30.5 Bcf of gas from Jurassic aged reservoirs. Principal targets are the Silurian sourced Triassic targets, proven by the neighbouring producing Meskala field. Resource estimates for Triassic targets independently assessed by Gaffney Cline and Associates are 427 Bscf (Best Estimate) and 830 Bscf (High Estimate)of potentially recoverable gas and 26 MMBbl (Best Estimate) and 50 MMBbl (High Estimate) of potentially recoverable condensate.

Longreach plans to initiate a two well drilling program commencing in Q4 2013 with the Koba – 1 well.

Sidi Moktar Licence Map

Sidi Moktar Basic Data

Licence   Exploration Licence, Onshore
Area   2,683 km2 (662,969 acres)
Exploration To Date   6,172km of 2D Seismic, 40 exploration & development wells
30.5 Bcf produced from 4 fields
Work Programme completed by Longreach  
    • Basin wide interpretation of 4,500km seismic
    • Reprocessing of 1,500km 2D seismic
    • New acquisition of 520km 2D seismic
    • Petrophysical analysis of key offset wells
    • Geological evaluation studies and In field sedimentology studies
Upcoming work programme   Koba-1 and Kamar-1 drill programme
Prospective Reservoirs   Lower Liassic and Triassic clastics
Reservoir Depth   2,100-2,700 Metres
Hydrocarbon Source Rocks   Silurian shales
Trap Style   Four way dip closed structures and stratigraphic traps
Longreach Interest   50% Operator
MPE (25%), ONHYM (25%)

Geological Snapshot

Resource Estimates

Note: Independent Report commissioned by Longreach, February 2013

  • Assessment prepared by Gaffney, Cline and Associates
  • Summary Tables below prepared by Longreach for the convenience of the reader
  • Prepared in accordance with NI-5101 Standards of Disclosure for Oil and Gas Activities

UNRISKED GROSS PROSPECTIVE RESOURCES (PROSPECTS), AS AT 28TH FEBRUARY, 2013

  Potentially Recoverable Gas (Bscf) Potentially Recoverable Condensate (MMBbl) GCoS
Prospect Low Best High Low Best High
 Koba 148 349 674 9 21 41 22%
 Kamar 31 78 156 2 5 9 18%

Notes:
1. Prospects are features that have been sufficiently well defined, on the basis of geological and geophysical data, to the point that they are considered viable drilling targets.
2. "Gross Unrisked Prospective Resources" are 100% of the volumes estimated to be recoverable from the field.
3. The GCoS reported here represents an indicative estimate of the probability that drilling this Prospect would result in a discovery, which would warrant the re-classification of that volume as a Contingent Resource. The GCoS value for Contingent Resource is, by definition, unity. These GCoS values have not been arithmetically applied to the designated volumes within this assessment. Thus the volumes are "Unrisked".
4. It is inappropriate to aggregate Prospective Resources without due consideration of the different levels of risk associated with each Prospect/Lead and the potential dependencies between them. Similarly, it is inappropriate to aggregate Prospective Resource with Reserves or Contingent Resources.
5. The above table represents the expected outcomes for a gas condensate discovery based on the nearest analogue being the Meskala gas condensate field. There is, however, a chance of the discovery being just dry gas, as is found in the overlying Kechoula field. The dry gas case is not stated above.

UNRISKED GROSS PROSPECTIVE RESOURCES (LEADS), AS AT 28TH FEBRUARY, 2013


Potentially Recoverable Gas (Bscf) Potentially Recoverable Condensate (MMBbl) GC
Lead Best Estimate Best Estimate
 Kawkab 59 - 5%
 Kawi 58 - 4%
 Ksar 15 - 11%
 Kalaa 166 10.0 6%
 Kabeer 144 8.6 10%
 Kawthar 57 3.4 11%
 Kadeem 4 0.3 13%
 Kahena 20 1.2 6%
 Kashaf 35 2.1 5%
 Kenza 3 0.2 9%

Notes:
1. Leads are features that are not sufficiently well defined to be drillable, and need further work and/or data. In general, Leads are significantly more risky than Prospects and therefore volumetrics estimates for Leads are only indicative of relative size.
2. "Gross Unrisked Prospective Resources" are 100% of the volumes estimated to be recoverable from the field.
3. The GCoS reported here represents an indicative estimate of the probability that drilling this Prospect would result in a discovery, which would warrant the re-classification of that volume as a Contingent Resource. The GCoS value for Contingent Resource is, by definition, unity. These GCoS values have not been arithmetically applied to the designated volumes within this assessment. Thus the volumes "Unrisked".
4.It is inappropriate to aggregate Prospective Resources without due consideration of the different levels of risk associated with each Prospect/Lead and the potential dependencies between them. Similarly, it is inappropriate to aggregate Prospective Resource with Reserves or Contingent Resources.
5.Kawkab, Kawi and Ksar Leads are considered to be dry gas opportunities. Kalaa, Kabeer, Kawthar, Kadeem, Kahena, Kashaf and Kenza are considered to be condensate opportunities.

Infrastructure Overview

  • An 8 inch gas pipeline runs from the Meskala field through the Sidi Moktar licence to OCP's phosphate mine in Youssoufia.
  • Significant regional demand for gas exists
  • Gas prices are linked to imported fuel oil

WTI Crude Oil 101.67 -0.41%

Brent Crude Oil 107.57 -0.76%

Natural Gas 3.75 -0.91%
  • Gross Acreage:
    8.7 million acres
  • Onshore oil & gas prospects
  • Offshore oil prospects
  • Exploration activity
    to date
  • 3D seismic: 5,200km²
  • 2D seismic: 25,384km
  • 15,000km Aeromag

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