In the third quarter of 2014, PetroMaroc Corporation plc (TSXV: PMA) (the Company or PetroMaroc) confirmed the significant natural gas potential of the Kechoula structure in the Sidi Moktar Exploration Licence in Morocco(”Sidi Moktar”). The Company raised new capital for ongoing exploration and corporate initiatives, and is seeking a partner to help develop Sidi Moktar.
“With the receipt of an independent resource evaluation confirming a significant accumulation of natural gas at Sidi Moktar, we are moving ahead on the planning stages for an appraisal and delineation program to prove the commerciality of this large, prospective natural gas bearing structure,” said Tom Feuchtwanger, PetroMaroc’s President and CEO.
“We recently completed a $3 million private placement that is supporting our near-term efforts while we launch a broader search for an industry partner to accelerate the development of Sidi Moktar. Our recent resource assessment has confirmed the promising geological and commercial potential that we believe will generate attractive partnership opportunities,” Feuchtwanger said.
PetroMaroc ended the third quarter with cash of US$4.5 million. On October 30, the Company announced a non-brokered private placement of units of the Company at a price of Cdn $0.15 per unit to raise gross proceeds of a minimum of Cdn $3 million and a maximum of Cdn $6 million.
PetroMaroc closed the first tranche of the private placement raising Cdn $3 million on November 4. The Company anticipates it will close a second tranche of the private placement in December. The private placement is subject to the final approval of the TSX Venture Exchange (the ”TSX-V”).
In addition, PetroMaroc is pursuing a series of financing and strategic initiatives. Subsequent to the quarter-end, Dundee Securities Europe LLP was appointed as nominated adviser to make recommendations and assist the Company in attracting an industry partner to advance development of the Sidi Moktar licence.
PetroMaroc today filed its financial statements and management discussion and analysis for the quarter ended September 30, 2014. These documents are available on the PetroMaroc website at www.petromaroc.co or under the Company profile on SEDAR at www.sedar.com.
Highlights
Financial:
Cash position as at September 30, 2014, of US$4.5 million (US$6.6 million as at June 30, 2014).
Working capital deficit as at September 30, 2014, of US$0.1 million(US$1.3 million working capital surplus as at June 30, 2014).
Subsequent to the quarter-end, announced an intention to complete a non-brokered private placement at a price of Cdn $0.15 to raise gross proceeds of a minimum of Cdn $3 million and a maximum of Cdn $6 million.
Closed the first tranche of the private placement in early November, raising gross proceeds of Cdn $3 million, which provides near-term capital required until February 2015. The second tranche of up to Cdn $3 million is anticipated to close in December. Assuming completion of a full second tranche placement of Cdn $3 million this would provide near-term capital required until May 2015.
Operations:
Sidi Moktar onshore:
Following the Koba-1 and the Kamar wells, and the independent evaluation of the Undiscovered Petroleum Initially in Place (UPIIP) and prospective resources of the Kechoula structure, the Company outlined plans to appraise the potential of the Sidi Moktar licence. These initiatives, highlighted in PetroMaroc’s recent corporate investor presentation, are subject to successful financing and will address:
Testing and evaluating the existing wells and data
Acquiring 3D seismic over the Kechoula structure
Drilling two or three additional delineation and appraisal wells on the Kechoula structure
Sidi Moussa offshore:
The Company entered into formal discussions with the operator and partners to transfer its 1.5% working interest in the Sidi Moussa licence prior to the Nour-1 well reaching the primary target Middle Jurassic platform carbonate unit and secondary target Upper Jurassic reefal carbonates.
During the quarter, the Company successfully executed a binding letter agreement with one of the partners on the licence to transfer its 1.5% working interest, following which, the net cost to the Company for the Nour-1 well will be nil. This transfer of interest remains subject to approval by the Moroccan authorities (joint Ministerial orders).
The Company notes the announcement by the operator and partners on November 13, 2014 (subsequent to the quarter-end), that the Nour-1 well is being plugged and abandoned. This announcement will have no additional impact on the Company.
Foum Draa offshore:
The joint partners on the licence are reviewing the forward programme following the FD 11-Alpha-1 exploration well drilled in late 2013 that successfully completed the minimum work commitments of the First Extension Period of the exploration licence under the Petroleum Agreement, subject to completing end of well studies.
The joint partners have the option to advance to the Second Extension Period of the exploration licence, or withdraw from the exploration licence.
About PetroMaroc
PetroMaroc is an independent 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 Morocco’s National Office of Hydrocarbons and Mines (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. PetroMaroc is a public company listed on the TSX Venture Exchange under the symbol “PMA”.
Additional information about the Company can be found at www.petromaroc.co and under the Company’s SEDAR profile at www.sedar.com.
