July 01, 2011
Q1 2011 Results...
May 26, 2011
Annoucement of Farm in Agreement and Pro...
April 05, 2011
Operations Update ...
February 01, 2011
Appointment of Non- Executive Director...
January 31, 2011
Contract Awarded...
View All
July 01, 2011
Q1 2011 Financial Statements
July 01, 2011
Q1 2011 MD&A;
May 31, 2011
Longreach Investor Presentation May 2011

Press Releases

Q1 2011 Results

30 June, 2011


Q1 Results
LONGREACH OIL AND GAS LIMITED (TSX-V: LOI), an oil & gas company focused on Morocco , is pleased to announce its results for the three month period ended March 31, 2011.
Operational Update:
• The contractor appointed to acquire seismic on the Tarfaya licence is now up and running in Morocco. NovaSeis plans to start the acquisition of 600 km of 2D seismic on the licence by July 1, 2011.
• CAD$ 5 million in cash and cash equivalents as of 31st March 2011, which the Company believes to be adequate to fund its existing programs.

Post Q1 period - Announced:
• the signing of a Farm-in Agreement which, if completed, will result in the acquisition of a 50% operated interest in the Sidi Moktar licence in Morocco
• the filing of a preliminary prospectus in each of the provinces of Canada, except for Québec, Newfoundland and Labrador and Prince Edward Island, to raise a minimum of CAD$ 25.0 million through the issue of new ordinary shares by way of a "best efforts" prospectus offering (the "Offering") through a syndicate of agents led by Paradigm Capital Inc. including Fraser Mackenzie Limited (collectively, the “Agents”) and European Selling Agents, VSA Capital.

Commenting, Bryan Bentz, Chairman and CEO of Longreach, said:
“The Company believes it is making solid progress on its original licences and also the development of a wider portfolio of assets within Morocco. We believe the farm-in to the Sidi Moktar licence will transform the Company; making it an operator of a licence within Morocco and giving the Company near term cashflow potential, which would support the wider exploration and development programme. We believe Morocco remains a favourable place to operate, with attractive fiscal terms and strong growth in demand for hydrocarbons, underpinned by strong economic growth and a thriving phosphate industry.”

Longreach’s main focus in the first quarter of 2011 was the acquisition and reprocessing of seismic data, on a number of its licences, and the expansion of its portfolio with the aim of gaining near term production and operatorship of a licence in Morocco.


In January, the Company announced that Fugro Robertson, a geoscience and technical services company, had been appointed to undertake 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. Reprocessing of both sets of data is currently expected to be completed early in the third 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.

During the period, preparations were made for the upcoming 2D seismic programme on the Tarfaya licence. Based on the reprocessing of 1,450km of existing 2D seismic data, 15 leads have already been identified. The aim of the planned programme is to provide 600km of infill seismic over the most prospective leads, which have estimated prospective resources of approximately (all gross numbers) 8,878 Mbbls (low estimate), 156,764 Mbbls (best estimate) and 3,226,894 Mbbls (high estimate). NovaSeis will undertake the acquisition programme, which is expected to commence by 1st July. The Tarfaya licence is located onshore Morocco. The Company holds a 30% gross working interest in the Tarfaya licence.

On the Company’s Zag licence, Longreach undertook planning for the acquisition of 600km of 2D seismic data. The processing is currently scheduled to begin after the seismic acquisition programme on Tarfaya has been completed. The Zag licence is located onshore in the westernmost extension of the North African Paleozoic basins. Longreach holds a 30% gross working interest in the Zag licence.

On May 26, 2011, Longreach announced that it had entered into a percentage interests transfer agreement (the “Farm-in Agreement”) with Maghreb Petroleum Exploration S.A. (“MPE”). Pursuant to the Farm-in Agreement, Longreach will 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 licence. The Company believes that the completion of the Farm-in Agreement will be transformational for Longreach, by 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.

The Sidi Moktar farm-in would provide the Company with 3 additional exploration licences. 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. Existing pipeline infrastructure runs through the licences and connects them to phosphate mines in the north, where strong demand for natural gas exists.


At the period end, the Company had cash and cash equivalent of CAD$ 5 million, which the Company believes puts it in a strong financial position to maintain the work programmes on its 4 original licences.


Longreach believes that it is in a strong position, with solid work programmes that are well funded on its original 4 licences. The Company also believes that the farm-in of the Sidi Moktar licences would transform the Company into one that has near term production and revenues that would be able to help fund future investment programmes. Based on this, we look forward to the rest of the year and the further development of the Company and its assets.

About Longreach
Longreach holds varying interests in 4 exploration licenses in southern onshore and offshore Morocco, totalling approximately 11.8 million acres of exploration acreage, which the Company believes to represent approximately 15% of the country’s total license area.

For Further Information:
Bryan Benitz Chairman & CEO +44 20 3137 7756
Pelham Bell Pottinger
Mark Antelme / Philip Dennis / Jenny Renton +44 207 861 3232

Additional information on Longreach Oil and Gas Limited can be found at www.longreachoilandgas.com or through Longreach’s investor relations agent

Additional information on Longreach Oil and Gas Limited can also be found at www.sedar.com

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, statements with respect to the completion of the Farm-in agreement, the performance characteristics of the Company’s oil and gas properties, capital expenditure programs, supply and demand for oil, gas and commodity prices, drilling plans, realization of the anticipated benefits of acquisitions.

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 political risk; 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 neither the Company nor any of the agents undertakes any obligation to publicly update or revise any forward-looking statements except as expressly required by applicable securities laws.

Not an offer to sell or solicitation of an offer to buy securities in the United States

This press release is not an offer to sell or solicitation of an offer to buy securities in the United States of America or to any US person (as that term is defined in the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”). The securities offered in the Offering referred to in this press release have not been and will not be registered under the U.S. Securities Act, or any state securities laws. Accordingly, such securities may not be offered or sold to, or for the account or benefit of, persons in the United States or U.S. persons.

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.


Download this Article

Queensway House, Hilgrove Street, St Helier, Jersey, Channel Islands, JE1 1ES Webdesign ILD
powered by Proactive Internet

Copyright 2010 Longreach Oil and Gas Ltd. All Rights Reserved