Longreach's first quarter natural gas drilling sets the foundation for promising 2014 exploration work in Morocco

 Longreach's first quarter natural gas drilling sets the foundation for  promising 2014 exploration work in Morocco  Exploration programme and funding plans continue to advance Q1 2014 results  published  SAINT HELIER, Jersey, May 30, 2014 /CNW/ - During the first quarter of 2014,  LONGREACH OIL AND GAS LIMITED (TSXV: LOI) (the Company or Longreach) outlined  detailed results of its first exploration well in Morocco, Koba-1, and  commenced drilling of its second exploration well, Kamar-1, which subsequent  to the quarter-end encountered two prospective natural gas zones in the Sidi  Moktar licence in the Essaouira Basin of the North African nation.  "Our first two exploration wells captured extensive geological and  petrophysical information that has helped define the presence of natural gas  in the targeted Lower Liassic formation and the Lower Dogger/Upper Liassic  formations. These promising results that have set the foundation for the  planning we currently have underway to continue our exploration work in 2014.  We ended the first quarter with cash of US$3.2 million. Subsequent to quarter  end, in April 2014, we completed a private placement that raised CAD$9.7  million, which permitted the Company to continue with its contracted drilling  activities of the Kamar-1 well. We continue to evaluate the results of our  first two wells - Koba-1, drilled in late 2013, and Kamar-1 completed in May  2014. We are commencing discussions with investors to obtain further financing  of additional exploration work in 2014," said Dennis Sharp, Longreach's  Executive Chairman.  Longreach today filed its financial statements for the quarter ended March 31,  2014, together with its Management's Discussion and Analysis in respect of the  Company's financial results for the quarter ended March 31, 2014. These  documents are available on the Longreach website at www.longreachoilandgas.com  or under the Company's profile on SEDAR at www.sedar.com.  Highlights  Financial:            --  Cash position as at March 31, 2014, of US$3.2 million (US$12.7             million as at December 31, 2013)         --  Working capital deficit as at March 31, 2014, of US$2.8 million             (US$3.9 million working capital surplus as at December 31,             2013)         --  Subsequent to the quarter-end, completed an interim debenture             financing of CAD$9.7 million in April 2014 and intends to             obtain further financing in 2014, which may include a rights             offering or private placement  Operations Summary:         --  Sidi Moktar:       o On March 20, 2014, the Company commenced drilling of the Kamar-1         well, targeting a Lower Liassic reservoir and Triassic clastic         reservoirs. Subsequent to the quarter-end, the Kamar-1 well was         drilled to a final total depth of 2,790 metres and intersected two         distinct gas-bearing intervals. One is in the targeted Lower         Liassic natural gas zone and has a gross interval of 110 metres as         defined by petrophysical, wireline logs. The other is defined by         the presence of significant natural gas volumes in the drilling mud         within the Lower Dogger/Upper Liassic zone, which occurs over a         gross interval of approximately 100 metres       o Following the Kamar-1 well, the Company will review the forward         operational programme.         --  Sidi Moussa Offshore:       o Longreach has been advised that the operator, Genel Energy plc         (Genel), has secured a rig to drill an exploration well targeting         the Mid-Jurassic and Lower Triassic reservoirs in the third quarter         of 2014. Longreach holds a 1.5 percent working interest in this         exploration block.  About Longreach Longreach is an independent Canadian oil and gas company focused on its  significant land position in Morocco. The Company has a 50 percent operated  interest in the Sidi Moktar licence 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 favourable fiscal terms to energy  producers. Longreach is a public company listed on the TSX Venture Exchange  under the symbol "LOI".  Additional information about the Company can be found at  www.longreachoilandgas.com and under the Company's SEDAR profile at  www.sedar.com.  Special Note Regarding Forward Looking Statements This press release contains forward-looking statements. Such forward-looking  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 regarding the drilling of the  Karmar-1 well at the Company's operated Sidi Moktar onshore license area in  Morocco; the ability of the Company to successfully complete the drilling  programme at Kamar-1 over the next few weeks; the completion of evaluations  and processing and interpretation of data, the performance characteristics of  the Company's oil and gas properties, capital expenditure programmes, supply  and demand for oil, gas and commodities, prices for oil and gas, drilling  plans, and 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; completing the proposed drilling programme at Kamar-1 in a  timely and fiscally prudent manner; 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 factors and 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. Material factors and  assumptions which management of the Company has considered in connection with  making the forward-looking statements in this press release include that the  Company will be able to successfully complete the drilling programme at  Kamar-1 and to successfully evaluate, process and interpret data. 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 the 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.  This news release does not constitute an offer to sell or a solicitation of an  offer to buy any securities of Longreach in any jurisdiction in which such  offer, solicitation or sale would be unlawful. The securities referred to  herein have not been and will not be registered under the United States  Securities Act of 1933 (the "U.S. Securities Act") or any state securities  laws and may not be offered or sold within the United States or to U.S.  Persons (as defined in the U.S. Securities Act) unless registered under the  U.S. Securities Act and applicable state securities laws, or an exemption from  such registration is available.    SOURCE  Longreach Oil and Gas Limited  Martin Arch Chief Financial Officer and Secretary Tel: +44 203 137 7756  To view this news release in HTML formatting, please use the following URL:  http://www.newswire.ca/en/releases/archive/May2014/30/c7604.html  CO: Longreach Oil and Gas Limited NI: OIL ERN FIELD  
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