Longreach Oil & Gas: Significant Natural Gas Occurrence at Koba-1 well in
CALGARY, Jan. 23, 2014
CALGARY, Jan. 23, 2014 /PRNewswire/ - LONGREACH OIL AND GAS LIMITED (TSX-V:
LOI) ("Longreach" or the "Company"), an independent oil and gas company
holding numerous exploration licenses in Morocco, is pleased to announce that
the Company encountered a significant natural gas occurrence in the Koba-1
well. Longreach has a 50% operated interest in the Sidi Moktar license area
covering 2,683 square kilometres. Longreach is partnered by ONHYM and MPE
(25% carried interest each).
On December 31, 2013, the Company announced that the Koba well had been
drilled to a total depth of 3,100 metres and had encountered a gross interval
of approximately 45 metres with reservoir potential. Over this section, gas
shows of over 10% were encountered throughout the interval with heavier
hydrocarbon components of over C5+. The Koba-1 well has now been logged and
The Koba structure is the first prospect to be drilled as part of Longreach's
exploration program. A portfolio of leads and prospects has been identified
and, following the results of Koba-1, the Company intends to determine the
extent of this natural gas occurrence by further drilling.
Additional Technical Comments
As mentioned in our earlier release of December 31, 2013, the Koba-1 well
encountered approximately 45 metres of good quality Lower Liassic Jurassic gas
charged reservoir commencing at 1830 metres. This assessment has been made on
the basis of visual examination of chip samples and side wall cores and from
the amount of gas which entered the mud column while drilling and which was
recorded by the gas chromatograph. The second drilling objective in the
Triassic was not encountered in the section penetrated.
The Lower Liassic reservoir zone is normally overpressured (4500psi) as
anticipated from nearby wells and the mud weight was adjusted to effectively
handle that pressure. However, at 1873 metres the well experienced a
significant influx of salt water at an abnormally high pressure of 6000psi. No
other well in this area has encountered such high formation pressures at this
depth. In order to control the well, which started flowing, the mud weight was
steadily increased to 2.3SG before the well was stabilised enough to continue
logging. Logging operations had to be halted a number of times in order to
run back in the hole and recirculate in an attempt to stabilize the flow.
Consequently the Lower Liassic reservoir zone was open to the heavy mud and
abnormally high pressures for an extended period of time which resulted in
damage to the well bore and significant invasion of the drilling mud into the
Lower Liassic reservoir formation.
A normal series of logs were acquired and an MDT tool was deployed in an
attempt to obtain reservoir formation pressures and collect gas samples.
However, the logs and the MDT tool were not quantitatively effective due to
the mud invasion and rugose nature of the wellbore. No gas samples were
collected and only a limited number of pressures were obtained. Twenty side
wall cores were collected confirming excellent reservoir quality.
As a result of the significant damage to the reservoir zone, Longreach is
unable to reliably quantify the effective porosity, gas saturation or gas
composition values for the Lower Liassic reservoir zone. At this time we do
not believe that the high pressure water the Koba-1 well encountered is a gas
water contact due to the significant differences in pressure between the gas
and water-bearing zones. However, the Koba-1 well has proved that good
quality, gas charged reservoir rocks are present thereby confirming the
resource potential of the Longreach Sidi Moktar License. We continue to review
the data and refine the timing of our follow-up drilling and testing program.
Longreach Oil and Gas is an independent Canadian oil and gas company focused
on its significant land position in Morocco. The Company has a 50% operated
interest in the Sidi Moktar license area covering 2,683 square kilometres and
is working closely with ONHYM as a committed long-term partner to unlock the
hydrocarbon potential of the region. Morocco offers a politically stable
environment to work within and has extremely favourable fiscal terms to energy
producers. Longreach Oil and Gas is a public company listed on the TSX
Venture Exchange under the symbol "LOI".
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
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.
SOURCE Longreach Oil and Gas Limited
For Further Information on Longreach Oil & Gas Limited:
Dennis A. Sharp, P. Eng., Executive Chairman & CEO
Neil Hamzaoui, Commercial ManagerTel: +44 203 137 7756
Additional information on Longreach Oil & Gas Limited can be found
atwww.longreachoilandgas.com or on SEDAR atwww.sedar.com.
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