Proactive Investors
Longreach believes it has encountered what it calls a hybrid reservoir that holds “substantial resource potential”.
Longreach Oil & Gas(CVE:LOI) has made what looks to be a significant gas find in Morocco.
Its Kamar-1 well, on the Kechoula structure of the Sidi Moktar licence, intercepted two separate natural gas zones measuring more than 200 metres in total.
They were in the Lower Liassic and Lower Dogger/Upper Liassic and measured a gross 110 metres and 100 metres respectively.
Longreach believes it has encountered what it calls a hybrid reservoir that holds “substantial resource potential”.
Chairman Dennis Sharp added: “These are very promising exploration results from our second Moroccan well, which adds vital, new technical evidence to our growing understanding of the large resource potential in the Kechoula structure.
“Most importantly, our Kamar-1 well did not encounter any bottom water, which is excellent news for Longreach shareholders and our Moroccan partners.”
The firm said it has capitalised on the lessons learnt from drilling the first well at the licence – the Koba-1 – where difficulties were encountered.
However, it added that unlocking the potential of the Kechoula structure will require a “comprehensive technical approach”.
This will employ both conventional and unconventional reservoir completion techniques of the type that have underpinned North America’s recent oil and gas production revolution, Longreach told investors.
“Reservoir evaluation continues alongside plans to secure financing for future operations evaluating Longreach’s first two exploration wells and the Kechoula structure represents the initial work in the company’s four-step process to creating sustainable, economic value from prospective reservoirs,” the company went on.
