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Wednesday, 14 August 2013
Longreach Oil & Gas’s Morocco drilling could be very significant for investors
Longreach Oil & Gas’s (CVE:LOI) upcoming drill programme could prove to be very significant for both the company and investors, according to chief executive Andrew Benitz.
Delivering the news investors had been waiting for LOI revealed on Monday that work will start on the first of two initial wells on the 50% owned Sidi Moktar asset in mid-October.
It signed up Italian oil services specialist Saipem to carry out the programme, using its Drillmec Mas 7000 rig.
Benitz says he is delighted to have secured Saipem, a world class operator, for the programme and the project is moving forward to the drilling stage, after the team has spent two years working hard on G&G – geological and geophysical – exploration to define targets.
The Koba prospect will be the target of the first of two planned wells. If either are successful the rig contract can be extended for two further wells.
He also explains that a drilling success could be very significant. Koba is a very sizable onshore prospect, he says, close to existing infrastructure and production.
The first well is scheduled to take around 50 days to drill from the October start, and as such could be out by early December.
Koba is made up of two targets, lower Jurassic and Triassic sandstones and has been de-risked by recently acquired seismic. It is testing new play concepts in the Essaouira Basin which LOI has identified though its G&G programmes to date.
It is estimated to host around 350bn cubic feet of gas and 21mln barrels of gas condensate.
The second well will target the smaller Kamar prospect which is predicted to contain about 80bn cubic feet of gas and 5mln barrels of condensate.
Whilst the company is actively pursuing its onshore projects, including the 22.5% owned Tarfaya licence, which will be drilled early next year, it still has interest in high impact offshore drilling.
It retains a carried 2.5% stake in the Cairn operated Foum Draa licence block, which will be drilled before the end of the year, as well as a 1.5% interest in Genel Energy’s Sidi Moussa block which should have a well drilled in the first quarter of 2014.