Significant Drilling Campaign Commences with Well Spud on Foum Draa and Operational Progress for Drilling on Sidi Moktar
LONGREACH OIL AND GAS LIMITED (TSX-V: LOI) (the “Company” or “Longreach”), an independent oil and gas company focused on Morocco, notes the Cairn Energy PLC (Cairn) Operational Update published today announcing that drilling on the FD II Alpha-1 exploration well, on the Foum Draa licence, offshore Morocco has commenced, using the Cajun Express, a fifth generation semi-submersible drilling unit.
The Foum Draa licence is located in deep water in the Tarfaya basin, directly West of Agadir. The FD II Alpha-1 exploration well is located in 1,500 metres of water approximately 120 kilometres offshore Morocco. The well has a planned Total Depth of 5,500 metres TVDSS and operations are anticipated to take approximately 60 days. The Alpha prospect is a slope apron clastic fan of Cretaceous / Jurassic age.
Under the terms of the farm-out agreement Cairn acquired a 50% operated interest in the licence from Longreach and each of its joint venture partners in exchange for paying the first US$ 60 million of the exploration well costs. Longreach retains a 2.5% interest in the Foum Draa licence.
Sidi Moktar Update
Longreach is also pleased to provide an update on the mobilisation of the Saipem Drillmec Mas 7000, a 2,000HP unit built in 2007 for the drilling of the Koba 1 well in its operated Sidi Moktar, onshore licence area. The rig arrived at Agadir Port on 12th October and is now on location and being assembled for a planned spud date for mid-November.
Commenting, Andrew Benitz, CEO of Longreach, said:
“The Foum Draa well represents a significant opportunity for Longreach and its investors, given the size of the target prospect. The start of this well also kicks-off a wider drilling programme for Longreach in the near and medium term. The programme consists of the drilling of two sizable onshore prospects, starting with the imminent Koba 1 well, operated by the Company, as well as a further significant offshore well, where again Longreach benefits from a carry on the well”.
|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 planned well depth, length of drilling operations, drilling plans, planned spud datem 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.
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