Longreach Oil and Gas (CVE:LOI) this week confirmed the drill plans for its asset in Morocco, starting with the Koba 1 well in mid-October.
That is on the 50% owned Sidi Moktar onshore exploration licence, which has already been de-risked by recent seismic reports.
Saipem has been contracted to provide the services to drill at least two wells, but there may be two more wells added into the contract.
Chief executive Andrew Benitz recently spoke to Proactive Investors (PI), and what follows is a transcript of that conversation.
PI: This is clearly good news as it defines the beginning of the next stage, but how significant for shareholders, in your opinion, would success be in either of the initially contracted wells?
AB: Well, we have been working on the Sidi Moktar licence for a couple of years now.
Of course, the team has worked with Saipem in the past, so we have got familiarity with the rig and the Saipem team. We are looking forward to a very exciting programme that will kick off in October.
PI: How significant is this for shareholders?
AB: I think it has the chance to be very significant. The Koba well is targeting 350bn cubic feet (Bcf) of gas and 20 million barrels of condensate of prospective resources, as defined by Gaffney Klein, earlier in March.
It is a very sizeable prospect. It is onshore and close to existing infrastructure and surrounds existing production.
It is a very exciting prospect to be drilled.
PI: Assuming a mid-October start as anticipated, when could we expect the first results to come through?
AB: We are expecting a 50 day well programme, for the Koba well.
PI: You said there may be two more wells added to the contract. What would trigger this additional work?
AB: Success.
PI: Would they, or could the other two wells, be drilled at the same time? Or are you saying then, therefore, that these would come into the contract and will be drilled after these two that you have already got planned?
AB: They are optional wells. At this stage we are focusing on drilling Koba, and then, depending very much on the results of that, we have the option to extend the contract with Saipem and ensure that we can continue a drill programme on Sidi Moktar in the event of success.
PI: Okay. Well, we look forward to all that. In the meantime, Andrew, thanks for joining us
By Proactive Investors UK
