LONGREACH OIL AND GAS LIMITED (TSX-V: LOI) (the “Company” or “Longreach”), an independent oil and gas company focused on Morocco, is pleased to announce it has signed a contract with Saipem SpA (“Saipem”) for the provision of a drilling rig to drill two wells on its Sidi Moktar Exploration Licence Area onshore Morocco. The contract has the provision for Longreach to drill two additional optional wells.
The rig will be mobilised from Hassi Messaoud in Algeria with a planned rig-up date, on location in Sidi Moktar, of mid October 2013. Drilling will commence with the Koba 1 well.
The Koba prospect is a 4-way dip closure, targeting Lower Jurassic and Triassic sandstones. Koba has been further de-risked by the recently acquired seismic data and further extensive geological field studies, as conducted by the Longreach technical team. The prospect was initially evidenced by Longreach through careful reprocessing of existing data, together with extensive geological and geophysical studies.
The contracted rig is the Saipem Drillmec Mas 7000, a 2,000HP unit built in 2007. Saipem and the rig have been contracted after a rigorous tender process conducted by Longreach using best international practices to ensure the timely delivery of a rig matching the Companys requirements on HSE, technical performance and cost. Longreach has a 50% working interest and is Operator of the Sidi Moktar licences.
Commenting, Andrew Benitz, CEO of Longreach, said:
“We are delighted to have entered into a contract with Saipem for this world-class drilling unit, the Saipem Drillmec Mas 7000, to drill Longreachs well programme in Sidi Moktar. Saipem and the crew have extensive regional experience drilling similar formations and we have assembled a drilling operations crew which has working experience with this rig. We expect to spud the first well on Koba in October.
Bringing the Saipem rig and other world-class service and equipment providers into Morocco is a significant achievement for Longreach and a new exploration milestone for the Kingdom of Morocco. Drilling Koba will enable Longreach to test the new play concepts evidenced by Longreachs extensive geophysical, geological and petrophysical studies conducted over the previous several years in the Essaouira Basin.
Longreach is entering an exciting period of exploration in its operated Sidi Moktar licence and also in its non-operated offshore licences.”
For additional information, please contact:
|Andrew Benitz||Chief Executive Officer||+44 20 3137 7756|
|Andrew McKee||VP Corporate Development||+1 416 722 4915|
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 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 the completion of evaluations and processing and interpretation of data, the performance characteristics of the Companys oil and gas properties, capital expenditure programs, 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; 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; 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.