JERSEY, CHANNEL ISLANDS--(Marketwired - Nov 18, 2013) - Longreach Oil & Gas Limited
(
18th November 2013
LONGREACH OIL AND GAS LIMITED
Update of Company's Prospective Resource Estimates
LONGREACH OIL & GAS LIMITED (TSX-V: LOI) (the "Company" or"Longreach"), an
independent oil and gas company focused on Morocco, is
pleased to announce that an updated independent assessment of the
Company's prospective resource estimates on its interests in five
petroleum licences in Morocco has been completed by Gaffney, Cline &
Associates ("GCA"). The GCA assessment has been prepared in accordance
with the standards established by the Canadian Securities
Administrators in National Instrument 51-101 Standards of Disclosure
for Oil and Gas Activities. A copy of the report has been filed on
SEDAR.
It should be noted that the resource estimates include the Company's
operated Sidi Moktar Licence, together with the four non-operated
licence areas, onshore and offshore Morocco.
GCA previously confirmed that Longreach's thorough reinterpretation of
the seismic and other data has resulted in a new model for the
structural evolution of the Sidi Moktar area and believes that the
Longreach interpretation model for Sidi Moktar is more consistent with
the available data than previous models. Longreach holds a 50% working
interest in the Sidi Moktar Licence.
The following two tables, referring to Longreach's operated Sidi Moktar
licence, have been prepared for the convenience of readers by Longreach
and have been adapted from GCA's report:
Sidi Moktar UNRISKED GROSS PROSPECTIVE RESOURCES (PROSPECTS) AS AT 30th
JUNE 2013
Prospect Potentially Recoverable Potentially Recoverable GCoS
Gas (Bscf) Condensate (MMBbl)
Low Best High Low Best High
Koba 101.2 420.0 807.1 6.1 25.1 48.5 0.25
Kamar 36.6 91.2 187.6 2.4 6.1 12.5 0.11
Notes:
1. Prospects are features that have been sufficiently well defined,
on the basis of geological and geophysical data, to the point that they
are considered viable drilling targets.
2. "Gross Unrisked Prospective resources" are 100% of the volumes
estimated to be recoverable from the field.
3. The GCoS reported here represent an indicative estimate of the
probability that drilling this prospect would result in a discovery,
which would warrant the re-classification of that volume as a
contingent resource. The GCoS value for contingent resource is, by
definition, unity. These GCoS values have not been arithmetically
applied to the designated volumes within this assessment. Thus the
volumes are "Unrisked".
4. It is inappropriate to aggregate prospective resources without
due consideration of the different levels of risk associated with each
prospect/lead and the potential dependencies between them. Similarly,
it is inappropriate to aggregate prospective resources with reserves or
contingent resources.
5. The above table represents the expected outcomes for a gas
condensate discovery based on the nearest analogue being the Meskala
gas condensate field. There is, however, a chance of the discovery
being just dry gas, as is found in the overlying Kechoula field. The
dry gas case is not stated above.
Sidi Moktar UNRISKED GROSS PROSPECTIVE RESOURCES (LEADS) AS AT 30th
JUNE 2013
Lead Potentially Recoverable PotentiallyRecoverable GCoS
Gas (Bscf) Condensate (MMBbl)
Best Estimate Best Estimate
Kamar 231.8 13.9 0.06
Onlap
Kawkab 58.6 - 0.05
Kawi 58.4 - 0.04
Ksar 38.0 - 0.11
Kalaa 166.3 10.0 0.06
Kabeer 144.0 8.6 0.11
Kawthar 57.0 3.4 0.11
Kenza 2.6 0.2 0.09
Notes:
1. Leads are features that are not sufficiently well defined to be
drillable, and need further work and/or data. In general, leads are
significantly more risky than prospects and therefore volumetric
estimates for leads are only indicative of relative size.
2. "Gross Unrisked Prospective resources" are 100% of the volumes
estimated to be recoverable from the field.
3. The GCoS reported here represent an indicative estimate of the
probability that drilling this prospect would result in a discovery,
which would warrant the re-classification of that volume as a
contingent resource. The GCoS value for contingent resource is, by
definition, unity. These GCoS values have not been arithmetically
applied to the designated volumes within this assessment. Thus the
volumes "Unrisked".
4. It is inappropriate to aggregate prospective resources without
due consideration of the different levels of risk associated with each
prospect/lead and the potential dependencies between them. Similarly,
it is inappropriate to aggregate prospective resource with reserves or
contingent resources.
5. Kawkab, Kawi and Ksar Leads are considered to be dry gas
opportunities. Kamar Onlap, Kalaa, Kabeer, Kawthar, and Kenza are
considered to be condensate opportunities.
The 2012 2D seismic programme, together with recently completed
geological field mapping and analysis carried out by Longreach on the
Sidi Moktar Licence, have increased the prospective resources for the
prospects and leads and further de-risked the Koba prospect. In
addition, interpretation of the new seismic data, has identified a
second potential target zone in Kamar.
Commenting, Andrew Benitz, CEO of Longreach, said:"We are very pleased that
the extensive work which Longreach has
undertaken has resulted in an increase in the prospective resources
attributable to the Sidi Moktar Licence. We are now in the operational
phase, with our prime prospect Koba currently being drilled."
-ENDS-
For Further Information:
Longreach
Andrew Benitz CEO +44 20 3137 7756
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
Additional information on Longreach Oil and Gas Limited can also be
found at www.sedar.com
Special Note Regarding Estimates
The unrisked prospective resources described above are pre-drill
estimates prepared using probabilistic methods.
The volumes described represent the P90, P50 and P10 probabilistic
outcomes for individual prospects or leads.
As used in the COGE Handbook, "prospective resources" are those
quantities of petroleum estimated, as of a given date, to be
potentially recoverable from undiscovered accumulations by application
of future development projects. The prospective resources in GCA's
report indicate exploration opportunities but should not be construed
as reserves or contingent resources. There is no certainty that any
portion of the resources will be discovered. If discovered, there is no
certainty that it will be commercially viable to produce any portion of
the resources.
Prospective resources are those quantities of petroleum estimated, as
of a given date, to be potentially recoverable from undiscovered
accumulations by application of future development projects.
Prospective resources have both an associated chance of discovery and a
chance of development. Prospective resources are further subdivided in
accordance with the level of certainty associated with recoverable
estimates assuming their discovery and development and may be
subclassified based on project maturity. Prospective resources entail
more commercial and exploration risks than those relating to reserves
and contingent resources. The prospective resources reported herein are
presented as unrisked resources with the estimate risk for chance of
discovery stated separately. They have not been risked for chance of
development. If a discovery is made, there is no certainty that it will
be developed or, if it is developed, there is no certainty as to the
timing or cost of such development."Best Estimate" (Best) is considered to
be the best estimate of the
quantity of resources that will actually be recovered. It is equally
likely that the actual remaining quantities recovered will be greater
or less than the best estimate. Those resources that fall within the
best estimate have a 50% confidence level that the actual quantities
recovered will equal or exceed the estimate."Low Estimate" (Low) is
considered to be a conservative estimate of the
quantity of resources that will actually be recovered. It is likely
that the actual remaining quantities recovered will exceed the low
estimate. Those resources at the low end of the estimate range have the
highest degree of certainty - a 90% confidence level - that the actual
quantities recovered will equal or exceed the estimate."High Estimate"
(High) is considered to be an optimistic estimate of
the quantity of resources that will actually be recovered. It is
unlikely that the actual remaining quantities of resources recovered
will meet or exceed the high estimate. Those resources at the high end
of the estimate range have a lower degree of certainty - a 10%
confidence level - that the actual quantities recovered will equal or
exceed the estimate.
Please reference the report dated November 15, 2013, titled"Independent
Technical Report on the Petroleum Assets of Longreach Oil
and Gas", for full information regarding these prospective resource
estimates.
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 the Company's future operations.
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.
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
Contact Information:
Contacts:
RNS
Customer
Services
0044-207797-4400
http://www.rns.com