Longreach Oil & Gas Limited: Prospective Resource Estimate Update
Longreach Oil & Gas Limited: Prospective Resource Estimate Update
JERSEY, CHANNEL ISLANDS -- (Marketwired) -- 11/18/13 -- Longreach Oil & Gas Limited (TSX VENTURE: LOI) *T
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
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 P rospective 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
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:
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.
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