|By PR Newswire||
|April 28, 2014 02:02 AM EDT||
SAINT HELIER, Jersey, April 28, 2014 /PRNewswire/ --
2013 and fourth quarter results published
In 2013, LONGREACH OIL AND GAS LIMITED (TSXV: LOI) (the Company or Longreach) successfully advanced its exploration programme completing one promising well and setting the stage for a highly prospective second well currently drilling ahead. The Company's first exploration well, Koba-1 on its operated Sidi Moktar exploration licence, encountered very encouraging natural gas resource potential that indicated an estimated 45 metres of reservoir potential. Longreach is currently drilling a second exploration well, Kamar-1, on the property and has set casing above the first targeted reservoir. Future operational activity in the Sidi Moktar area will be determined after the completion, analysis and interpretation of the Koba-1 well and the Kamar-1 well. Longreach also plans to participate in an exploration well being drilled on its non-operated Sidi Moussa Offshore licence in the third quarter of 2014.
The Company exited 2013 with cash of US$12.7 million and raised an additional CAD$9.7 million through a private placement in April 2014. Longreach intends to evaluate additional financing opportunities in 2014.
Longreach today filed its annual financial statements for the year ended December 31, 2013, together with its Management's Discussion and Analysis in respect of the Company's financial results for the year ended December 31, 2013. These documents are available on the Longreach website at http://www.longreachoilandgas.com or under the Company's profile on SEDAR at http://www.sedar.com.
- Cash position as at December 31, 2013, of US$12.7 million (US$34.2 million as at December 31, 2012; US$21.3 million as at September 30, 2013)
- Working capital as at December 31, 2013, of US$3.9 million (US$32.6 million as at December 31, 2012; US$18.9 million as at September 30, 2013)
- Subsequent to year-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
- Sidi Moktar:
- Commenced drilling of the Koba-1 well, targeting Lower Liassic and Upper Triassic clastic reservoirs. The Koba-1 well was drilled to a total depth of 3,100 metres and operations were completed in early January 2014. The well encountered a gross interval of approximately 45 metres with reservoir potential.
- On March 20, 2014, the Company commenced drilling of the Kamar-1 well, targeting a Lower Liassic reservoir and Triassic clastic reservoirs. The Kamar-1 well has a planned total depth of 3,500 metres and operations are anticipated to take approximately 70 days.
- Following the Kamar-1 well, the Company will review the forward operational programme.
- Foum Draa Offshore:
- In late October 2013, the operator, Cairn Energy plc (Cairn Energy), commenced drilling the FD II-Alpha-1 exploration well located in 1,500 metres of water approximately 120 kilometres offshore of Morocco. The well was drilled to a total depth of 5,255 metres (subsea), but did not encounter clastic reservoirs. The well has been plugged and abandoned.
- 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.
Sidi Moktar Onshore (Net Working Interest 50%)
Longreach has a 50 percent operating interest in the onshore Sidi Moktar exploration licence. Sidi Moktar is comprised of three blocks (Sidi Moktar West, Sidi Moktar South and Sidi Moktar North) totalling 2,683 square kilometres, which cover the majority of the hydrocarbon basin of Essaouira, located in central onshore Morocco. The blocks surround the producing Meskala field, which is considered Morocco's major producing field and operated by the Office National des Hyrdocarbures et des Mines (ONHYM), the Moroccan state energy company. In 2011, the Meskala field produced approximately 3.6 million cubic feet per day of natural gas and 168 barrels per day of condensate from the Triassic reservoir. Four fields within Sidi Moktar have historically produced 30.5 billion cubic feet (Bcf) of gas from Jurassic-aged reservoirs.
Sidi Moktar has a significant amount of historical exploration data available, including 6,172 kilometres of 2D seismic, and 43 exploration and development wells. Longreach has interpreted over 4,500 kilometres of existing 2D seismic data and has completed the reprocessing of 1,750 kilometres of this data. Longreach has also completed comprehensive petrophysical and petrographic analyses of the neighbouring wells and outcrop sections to better understand the reservoir and seal potential of the Lower Liassic and Triassic stratigraphic sections. Subsequently, a portfolio of 12 prospects and leads has been mapped, ranked and risked.
On November 15, 2013, Longreach announced an updated independent technical report (effective date June 30, 2013) of the Company's petroleum assets, including the Sidi Moktar licence, that was prepared by Gaffney, Cline & Associates (GCA), a qualified reserves evaluator in accordance with National Instrument 51-101 requirements using the Canadian Oil and Gas Evaluation Handbook. GCA confirmed that Longreach's reinterpretation of the seismic and other data had resulted in a new model for the structural evolution of the Sidi Moktar area and concurs with Longreach's interpretation that the anticlines are more likely formed by inversion of Permo-Triassic half grabens. As a result, there is potential for hydrocarbon bearing clastic reservoirs to be found below Jurassic carbonate seals. GCA's best estimate of unrisked prospective resources are 420 Bcf of natural gas and 25.1 million barrels (MMbbl) of condensate for the Koba prospect, with a geological chance of success of 25 percent, and 91 Bcf of natural gas and 6.1 MMbbl of condensate for the Kamar Subcrop prospect, with a geological chance of success of 11 percent. The Kamar-1 well is expected to test the Kamar Subcrop, as well as the Kamar Onlap prospect (stratigraphically above the Kamar Subcrop) to which GCA estimated 232 Bcf of natural gas and 13.9 MMbbl of condensate, with a geological chance of success of six percent.
During 2013, the Company commenced drilling of the Koba-1 well, targeting the Lower Liassic and Upper Triassic clastic reservoirs. The Koba-1 well was drilled to a total depth of 3,100 metres and operations were completed in early January 2014. The well encountered a gross interval of approximately 45 metres with reservoir potential. Over this section, a gas influx of over 10 percent was encountered throughout the interval with heavier hydrocarbon components of condensate (over C5+). The Koba-1 well is currently suspended and the Company is reviewing the logs to assess the options available.
On March 20, 2014, the Company commenced drilling of the Kamar-1 well, targeting a Lower Liassic and Triassic clastic reservoirs. The Kamar-1 well has a planned total depth of 3,500 metres and operations are anticipated to take approximately 70 days. The Company plans to review the forward operational programme following the completion of the Kamar-1 well.
Sidi Moussa Offshore (Net Working Interest 1.5%) and Foum Draa Offshore (Net Working Interest 2.5%)
In September 2009, Longreach agreed to terms to earn a 7.5 percent net working interest in the Sidi Moussa Offshore licence and the Foum Draa Offshore licence. Located directly west of the coastal city of Agadir, the two licences cover an area of approximately 12,714 square kilometres.
On August 23, 2012, Longreach entered into a farm-out agreement with Genel whereby Genel acquired a 60 percent operating equity interest in the Sidi Moussa Offshore licence proportionally from Longreach and each of its joint venture partners. Genel paid its equity interest share of past costs, being US$129,990 net to Longreach, and is expected to pay the first US$50 million towards drilling of the commitment well (including ONHYM's 25 percent carried interest) required under the terms of the First Extension Period of the Sidi Moussa Licence. Longreach's net interest in the Sidi Moussa Offshore licence has been reduced from 7.5 percent to 1.5 percent as a result Genel's farm-in. The Company has been advised by Genel that an offshore exploration well targeting Mid-Jurassic / Lower Triassic reservoirs is anticipated to be drilled in the third quarter of 2014.
On August 28, 2012, Longreach entered into a farm-out agreement with Cairn whereby Cairn acquired a 50 percent operating equity interest in the Foum Draa Offshore licence proportionally from Longreach and each of its joint venture partners. In 2013, Cairn paid its equity interest share of past costs, being US$150,000 net to Longreach, and paid the first US$60 million towards drilling of the FD-1 exploration well (including ONHYM's 25 percent carried interest), a commitment well under the terms of the First Extension Period of the Foum Draa Licence. Longreach's net interest in the Foum Draa exploration licence has been reduced from 7.5 percent to 2.5 percent as a result of Cairn's farm-in.
In late October 2013, Cairn commenced drilling the FD II-Alpha-1 exploration well located in 1,500 metres of water approximately 120 kilometres offshore of Morocco. The well was drilled to a total depth of 5,255 metres (subsea), but did not encounter clastic reservoirs where the primary target was a Late Jurassic and Early Cretaceous deep-water turbidite slope fan. It did penetrate the oldest stratigraphic section of any deep water exploration well along the Moroccan margin. The well was subsequently plugged and abandoned.
ZagBasin Onshore (Net Working Interest 22.5%)
The operator of the Zag Basin, San Leon Energy Plc, completed a 15,000 square kilometre aeromagnetic survey and a 1,674 kilometre 2D seismic survey on the licence in January 2012, largely on the eastern part of the property area. This was the first seismic data ever acquired on this licence. Interpretation of the surveys has indicated a portfolio of structural leads.
Having successfully completed the minimum work programme obligations for the Initial Period of the exploration licence, the joint venture partners elected to move into the First Extension Period. The First Extension Period has a minimum work programme requirement for one well to test either the Ordovician formation or to drill to a minimum depth of 3,000 metres by May 2015.
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".
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 from the Koba structure, 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 Estimates
The unrisked prospective resources described above have been estimated using probabilistic methods and are dependent on a petroleum discovery being made.
Prospective resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. Prospective resources are further subdivided in accordance with the level of certainty associated with recoverable estimates assuming their discovery and development and may be subclassified based on project maturity. The prospective gas and condensate resources in the GCA report indicate exploration opportunities and quantify the development potential in the event a commercial discovery is made and should not be construed as reserves or contingent resources. The prospective resources set out in the tables above are those undiscovered, highly speculative gas and condensate resources estimated beyond gas and condensate reserves or contingent gas and condensate resources where geological and geophysical data suggest the potential for discovery of petroleum but where the level of proof is insufficient for classification as reserves or contingent resources. The unrisked prospective gas and condensate resources are the range of volumes that GCA estimates could reasonably be expected to be recovered in the event of discovery and development of these resources.
The following terminology, consistent with the COGE Handbook and guidance from Canadian securities regulatory authorities, was used to prepare the disclosure relating to the prospective gas and condensate resources above.
"Best Estimate" (Best) is considered to be the best estimate of the quantity of resources that will actually be recovered. It is equally likely that the actual remaining quantities recovered will be greater or less than the best estimate. Those resources that fall within the best estimate have a 50 percent confidence level that the actual quantities recovered will equal or exceed the estimate.
"Low Estimate" (Low) is considered to be a conservative estimate of the quantity of resources that will actually be recovered. It is likely that the actual remaining quantities recovered will exceed the low estimate. Those resources at the low end of the estimate range have the highest degree of certainty - a 90 percent confidence level - that the actual quantities recovered will equal or exceed the estimate.
"High Estimate" (High) is considered to be an optimistic estimate of the quantity of resources that will actually be recovered. It is unlikely that the actual remaining quantities of resources recovered will meet or exceed the high estimate. Those resources at the high end of the estimate range have a lower degree of certainty - a 10 percent confidence level - that the actual quantities recovered will equal or exceed the estimate.
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.
For further information:
Chief Financial Officer and Secretary
Building a cross-cloud operational model can be a daunting task. Per-cloud silos are not the answer, but neither is a fully generic abstraction plane that strips out capabilities unique to a particular provider. In his session at 20th Cloud Expo, Chris Wolf, VP & Chief Technology Officer, Global Field & Industry at VMware, will discuss how successful organizations approach cloud operations and management, with insights into where operations should be centralized and when it’s best to decentraliz...
Mar. 26, 2017 05:00 PM EDT Reads: 3,559
The taxi industry never saw Uber coming. Startups are a threat to incumbents like never before, and a major enabler for startups is that they are instantly “cloud ready.” If innovation moves at the pace of IT, then your company is in trouble. Why? Because your data center will not keep up with frenetic pace AWS, Microsoft and Google are rolling out new capabilities In his session at 20th Cloud Expo, Don Browning, VP of Cloud Architecture at Turner, will posit that disruption is inevitable for c...
Mar. 26, 2017 05:00 PM EDT Reads: 2,093
Providing the needed data for application development and testing is a huge headache for most organizations. The problems are often the same across companies - speed, quality, cost, and control. Provisioning data can take days or weeks, every time a refresh is required. Using dummy data leads to quality problems. Creating physical copies of large data sets and sending them to distributed teams of developers eats up expensive storage and bandwidth resources. And, all of these copies proliferating...
Mar. 26, 2017 03:30 PM EDT Reads: 6,507
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
Mar. 26, 2017 03:15 PM EDT Reads: 2,783
DevOps has often been described in terms of CAMS: Culture, Automation, Measuring, Sharing. While we’ve seen a lot of focus on the “A” and even on the “M”, there are very few examples of why the “C" is equally important in the DevOps equation. In her session at @DevOps Summit, Lori MacVittie, of F5 Networks, explored HTTP/1 and HTTP/2 along with Microservices to illustrate why a collaborative culture between Dev, Ops, and the Network is critical to ensuring success.
Mar. 26, 2017 03:00 PM EDT Reads: 10,526
Interoute has announced the integration of its Global Cloud Infrastructure platform with Rancher Labs’ container management platform, Rancher. This approach enables enterprises to accelerate their digital transformation and infrastructure investments. Matthew Finnie, Interoute CTO commented “Enterprises developing and building apps in the cloud and those on a path to Digital Transformation need Digital ICT Infrastructure that allows them to build, test and deploy faster than ever before. The int...
Mar. 26, 2017 02:45 PM EDT Reads: 928
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Mar. 26, 2017 02:30 PM EDT Reads: 1,721
SYS-CON Events announced today that Conference Guru has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. A valuable conference experience generates new contacts, sales leads, potential strategic partners and potential investors; helps gather competitive intelligence and even provides inspiration for new products and services. Conference Guru works with conference organizers to pass great dea...
Mar. 26, 2017 02:15 PM EDT Reads: 4,345
SYS-CON Events announced today that Technologic Systems Inc., an embedded systems solutions company, will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Technologic Systems is an embedded systems company with headquarters in Fountain Hills, Arizona. They have been in business for 32 years, helping more than 8,000 OEM customers and building over a hundred COTS products that have never been discontinued. Technologic Systems’ pr...
Mar. 26, 2017 02:00 PM EDT Reads: 3,371
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
Mar. 26, 2017 01:45 PM EDT Reads: 1,814
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Mar. 26, 2017 01:45 PM EDT Reads: 8,490
SYS-CON Events announced today that Telecom Reseller has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
Mar. 26, 2017 01:15 PM EDT Reads: 2,110
Deep learning has been very successful in social sciences and specially areas where there is a lot of data. Trading is another field that can be viewed as social science with a lot of data. With the advent of Deep Learning and Big Data technologies for efficient computation, we are finally able to use the same methods in investment management as we would in face recognition or in making chat-bots. In his session at 20th Cloud Expo, Gaurav Chakravorty, co-founder and Head of Strategy Development ...
Mar. 26, 2017 01:15 PM EDT Reads: 3,550
SYS-CON Events announced today that Loom Systems will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2015, Loom Systems delivers an advanced AI solution to predict and prevent problems in the digital business. Loom stands alone in the industry as an AI analysis platform requiring no prior math knowledge from operators, leveraging the existing staff to succeed in the digital era. With offices in S...
Mar. 26, 2017 12:45 PM EDT Reads: 1,282
What if you could build a web application that could support true web-scale traffic without having to ever provision or manage a single server? Sounds magical, and it is! In his session at 20th Cloud Expo, Chris Munns, Senior Developer Advocate for Serverless Applications at Amazon Web Services, will show how to build a serverless website that scales automatically using services like AWS Lambda, Amazon API Gateway, and Amazon S3. We will review several frameworks that can help you build serverle...
Mar. 26, 2017 12:45 PM EDT Reads: 1,894