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  PR Newswire  SAINT HELIER, Jersey, May 30, 2014  Exploration programme and funding plans continue to advance Q1 2014 results published  SAINT HELIER, Jersey, May 30, 2014 /PRNewswire/ - 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:         *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 110metres 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        *Following the Kamar-1 well, the Company will review the forward          operational programme.    *Sidi Moussa Offshore:         *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  Contact:  Martin Arch Chief Financial Officer and Secretary Tel: +44 203 137 7756  
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