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 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
