Tuesday, 27 November 2012

Longreach Oil & Gas kicks off seismic program ahead of Morocco drilling

An important seismic exploration program has begun on Longreach Oil & Gas’s (CVE:LOI) Sidi Moktar permit onshore Morocco.
This comes ahead of the planned first well on the permit in the first half of next year.
The 2D seismic program will span 500 kilometres and it will assess possible drill targets such as the Koba and Kamar prospects.
Through this process it plans to de-risk and optimise the possible drilling locations.
"This is one of the final stepping stones to drilling our first well,” chief executive Bryan Benitz said.
“The company expects to be fully funded for its current multi-well program for next year, where the aim is to target a relatively low risk prospect, which if successful, will allow [us] to get into early production to generate near-term cash flow.
“This will provide additional foundations for the company's medium term plan for Morocco, where we plan to drill and bring on stream a combination of high impact and near-term producing assets."
Longreach says the survey will take two months to complete, with data processing being carried out simultaneously, which it believes will provide the necessary information to confirm the well locations in a timely manner for next year’s drilling.
The company also told investors that it will launch international tenders to secure a rig for a two well program.

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