SOURCE: Longreach Oil & Gas Limited
November 29, 2011 02:00 ET
JERSEY, CHANNEL ISLANDS–(Marketwire – Nov 29, 2011) –
29 November, 2011 LONGREACH OIL AND GAS LIMITED Q3 Results LONGREACH OIL AND GAS LIMITED (TSX-V: LOI), an oil & gas company focused on Morocco, is pleased to announce its financial and operating results for the three month period ended September 30, 2011. Highlights
Operational: * Completion of the Sidi Moktar farm in for a 50% interest and operatorship - providing potential for near term production and cashflow * Completion of a 608km 2D seismic acquisition on Tarfaya licence * Commenced 2D seismic programme on Zag licence * Reprocessing of 2D and 3D seismic on Foum Draa and Sidi Moussa licences now complete Financial / Management: * Cash of CND$11.8m (CND$5.2m Dec 2010) - fully funded for current work programmes * Working capital of CND$9.9m (CND$3.2m Dec 2010) * Successful equity placing in Jul 2011, raising CND$10.1m * Appointed Jonathan Morley-Kirk as CFO and an Executive Director Commenting, Bryan Benitz, Chairman and CEO of Longreach, said:"Raising the funds needed and subsequently completing the farm-in to the Sidi Moktar blocks will be transformational for the Company. It presents us with the opportunity for near term production and cashflow, as well as significant additional upside. Elsewhere, the Company has also made solid progress; moving operational programmes forward on all its licence interests. Longreach remains well funded and we look forward to making further progress for the remainder of 2011 and into 2012." For Further Information: Longreach Bryan Benitz Chairman & CEO +44 20 3137 7756 Pelham Bell Pottinger Mark Antelme / Philip Dennis / Rollo Crichton-Stuart +44 207 861 3232 Results Statement Longreach ended the quarter in a strong financial position with cash of $11.8 million and working capital of $9.9 million as compared to cash of $5.2 million and working capital of $3.5 million at December 31, 2010. The Company's liquidity and capital resource position improved since year end primarily as the result of an equity placing that closed on 29th July 2011 raising $10.1m Operational Update Sidi Moktar On 19th September 2011, the previously announced Sidi Moktar farm in was formally signed by all parties. Longreach has acquired a 50% operating interest in the onshore Sidi Moktar exploration licences located in the Essaouira Basin in Central Morocco. Sidi Moktar comprises of 3 blocks totalling 4,711 square kilometres. The blocks surround the producing Meskala field. According to historical information available from ONHYM, 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 AJM Petroleum Consultants, are 292 Bcf (Mean Estimate) and 776 Bcf (High Estimate). The licence has a significant amount of historical exploration data available to Longreach, including 6,172km2 of 2D Seismic and 40 exploration & development wells. Longreach has begun data loading and data interpretation and will complete a prospect high grading evaluation by year end which will identify a suitable location to shoot a 100km2 3D seismic programme. Other licences The Tarfaya 2D seismic programme was completed on 23rd September. In total 608 line kilometres was acquired, on time and within budget and beyond the minimum license requirement of 500km. The project focused on infill seismic over the existing J North prospect. Processing of the seismic is now underway. The Tarfaya Licence is located onshore Morocco and the Company holds a 30% gross working interest. The Zag 2D seismic programme has now commenced, where a minimum of 600 line kilometres will be acquired. The Zag licence is located onshore in the westernmost extension of the North African Paleozoic basin. The Company holds a 30% gross working interest in the licence. Geological and geophysical work is nearing completion on the Foum Draa and Sidi Moussa offshore licences. On Sidi Moussa reprocessing of 2000km of 2D seismic has been completed, with interpretation nearing completion. On Foum Draa 1500km2 of 3D seismic has been reprocessed with completion of technical work expected by year end. 33 leads and prospects have been identified. The Foum Draa and Sidi Moussa licences are located offshore. The Company holds a 10% gross working interest in each licence. Outlook The Company has made solid progress on all of its licence interests in the first half of the year. With the completion of the Sidi Moktar farm in and fund raising, we remain well positioned to make further progress during the remainder of this year and into 2012. Additional information on Longreach Oil and Gas Limited can be found at www.longreachoilandgas.com or through Longreach's 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 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 with respect to the use of proceeds from the Offering, the completion of the Offering, the completion of the Farm-in agreement, the performance characteristics of the Company's 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, including 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 neither the Company nor any of the agents undertakes 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. This information is provided by RNS The company news service from the London Stock Exchange END
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