el jadida
el jadida/mazagan beach
Operational Update:
On May 26, 2011, Longreach announced that it had entered into a Farm-in Agreement with Maghreb Petroleum Exploration S.A. ("MPE") to acquire a 50% interest in the onshore Sidi Moktar exploration licences; referred to as Sidi Moktar West, Sidi Moktar South and Sidi Moktar North located in the Essaouira Basin in Central Morocco. Under the Farm-in Agreement the Company will also become operator of the Sidi Moktar exploration licences. The Company believes that the completion of the Farm-in Agreement will be transformational for Longreach, adding to its existing Morocco-focused asset portfolio and giving the Company operatorship of what it believes to be highly prospective licences. The terms of the agreement include the acquisition of 100Km² of 3D seismic and the drilling of 2 wells.
According to ONHYM (Office National des Hydrocarbures et des Mines of Morocco), the Sidi Moktar licences have to date produced 30.5Bcf of gas. Independent petroleum consultants, AJM, based in Calgary, have attributed undiscovered gas initially in place of up to 776 Bcf (high estimate), 292 Bcf (best estimate) and 112 Bcf (low estimate). Existing pipeline infrastructure runs through the licences, connecting them to the phosphate mines in the north of Morocco, where strong demand for natural gas exists.
Work has been progressing on the 2D seismic acquisition on the onshore Tarfaya licence. This is now approximately 80% complete. The method of seismic acquisition used had allowed much of the processing of the data acquired to take place concurrently with the data acquisition and as such we are already in a position to outline an effective work programme going forward. The aim of the planned programme is to provide 600km of infill 2D seismic over the most prospective leads, which have estimated prospective resources of approximately 8.9 MMbbls (low estimate), 156.8 MMbbls (best estimate) and 3,227 MMbbls (high estimate) (gross). The Company holds a 30% interest in the licence.
The reprocessing of 1,500km² of 3D seismic data on the Foum Draa licence and 2,000km of 2D seismic data on the Sidi Moussa licence is ongoing and remains on schedule to be completed in the current quarter. On completion, the Company‘s partners in these licences, are expected to seek farm-in partners for drilling. To date 33 leads have been identified on the Foum Draa and Sidi Moussa licences, 9 of which have been estimated to have an aggregate 896 MMbbls of gross prospective resources. The Foum Draa and Sidi Moussa licences are located offshore and the Company holds a 10% working gross interest in each licence.
Financials:Longreach Oil & Gas - Q2 Results
On May 26, 2011, Longreach announced that it had entered into a Farm-in Agreement with Maghreb Petroleum Exploration S.A. ("MPE") to acquire a 50% interest in the onshore Sidi Moktar exploration licences; referred to as Sidi Moktar West, Sidi Moktar South and Sidi Moktar North located in the Essaouira Basin in Central Morocco. Under the Farm-in Agreement the Company will also become operator of the Sidi Moktar exploration licences. The Company believes that the completion of the Farm-in Agreement will be transformational for Longreach, adding to its existing Morocco-focused asset portfolio and giving the Company operatorship of what it believes to be highly prospective licences. The terms of the agreement include the acquisition of 100Km² of 3D seismic and the drilling of 2 wells.
According to ONHYM (Office National des Hydrocarbures et des Mines of Morocco), the Sidi Moktar licences have to date produced 30.5Bcf of gas. Independent petroleum consultants, AJM, based in Calgary, have attributed undiscovered gas initially in place of up to 776 Bcf (high estimate), 292 Bcf (best estimate) and 112 Bcf (low estimate). Existing pipeline infrastructure runs through the licences, connecting them to the phosphate mines in the north of Morocco, where strong demand for natural gas exists.
Work has been progressing on the 2D seismic acquisition on the onshore Tarfaya licence. This is now approximately 80% complete. The method of seismic acquisition used had allowed much of the processing of the data acquired to take place concurrently with the data acquisition and as such we are already in a position to outline an effective work programme going forward. The aim of the planned programme is to provide 600km of infill 2D seismic over the most prospective leads, which have estimated prospective resources of approximately 8.9 MMbbls (low estimate), 156.8 MMbbls (best estimate) and 3,227 MMbbls (high estimate) (gross). The Company holds a 30% interest in the licence.
The reprocessing of 1,500km² of 3D seismic data on the Foum Draa licence and 2,000km of 2D seismic data on the Sidi Moussa licence is ongoing and remains on schedule to be completed in the current quarter. On completion, the Company‘s partners in these licences, are expected to seek farm-in partners for drilling. To date 33 leads have been identified on the Foum Draa and Sidi Moussa licences, 9 of which have been estimated to have an aggregate 896 MMbbls of gross prospective resources. The Foum Draa and Sidi Moussa licences are located offshore and the Company holds a 10% working gross interest in each licence.
Financials:Longreach Oil & Gas - Q2 Results
