Longreach Oil & Gas: Significant Natural Gas Occurrence at Koba-1 well in Morocco

 Longreach Oil & Gas: Significant Natural Gas Occurrence at Koba-1 well in  Morocco  CALGARY, Jan. 23, 2014 /CNW/ - 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  suspended.  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.  About Longreach  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  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.    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.  To view this news release in HTML formatting, please use the following URL:  http://www.newswire.ca/en/releases/archive/January2014/23/c4599.html  CO: Longreach Oil and Gas Limited ST: Alberta NI: OIL FIELD  
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