• Energy Demand ▲6.5%/yr
  • $5bn annual energy bill
  • Net importer:
    1. 78% Gas, 99% Oil
    2. Oil Royalty: 10%
  • Gas Royalty: 5%
  • 124 Exploration Permits
  • 25 International E&P’s active
  • 2009: 9 wells, 7 discoveries
July 25, 2011
Longreach Investor Presentation July 2011
July 25, 2011
Final Short Form Prospectus
July 01, 2011
Q1 2011 Financial Statements

Why Morocco

Country Statistics

  • Size: 710,850 km2
  • 2008 Population: 34,343,200

Political & Economic Stability

  • Under the leadership of King Mohammed VI, Morocco is regarded as one of the most politically stable country's on the African continent
  • Macroeconomic stability with low inflation, a large reserve of foreign exchange and a diminishing foreign debt
  • GDP growth of 5.8% in 2008 and 7.3% in 2006
  • Fitch Sovereign risk rating: BBB with stable outlook

Oil & Gas Fundamentals

  • Net Importer - 78% of gas consumption and 99% of oil consumption
  • Demand growing at 6.5% per year - faster than China
  • US$5 billion energy bill
  • One of the largest energy consumers in Africa

Favourable Fiscal Regime

  • Regarded as one of the most favourable fiscal regimes worldwide
  • New Hydrocarbon law since 2000
  • Exploration has intensified since this new code
  • Exploration permit: 8 years
  • Exploitation permit: 25 years, with 10 year extension
  • State pays its share of exploitation costs

Fiscal Comparisons
Region Oil Royalty Gas Royalty Corporate Tax State Participation Additional
Algeria Up to 50% Up to 50% 20% Up to 90%  
Brazil 10% 10% 34%    
Germany 15% 35% 33%    
UK - - 50%    
Morocco 10% 5% 32% Up to 25% 10 year
tax break

Exploration Development in Morocco

Longreach's acreage represents over 15% of total Licenced acreage

1997 - 9 Permits
2009: 124 Permits




Exploration Activity - An Exciting Future

An Under-Explored Past

  • 3,500km of coastline, only 31 wells drilled offshore
  • Many sedimentary basins remain sparsely explored
  • Current well density of 0.04 wells/100km2 versus global average of 8 wells/100km2

Recent Success

  • 2009 - 9 wells, 7 successes
  • Circle Oil - gas discovery which tested at 19.24 million cubic feet per day
  • Dana Petroleum - gas well with estimate reserves of 100 bcf

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