By Mohammed Jetutu
Longreach is looking for $45Million to confirm its hunch that it found ‘substantial natural gas resource potential’on its SidiMoktar Licence in Morocco, a country which has played host to a spate of dry holes in the last nine months. The Canadian minnow says it is “advancing plans for the forward work programme to determine the commercial potential” of that “resource potential”.
The company wants the money“fortesting and evaluating the existing wells and data, acquiring 3D seismic over the Kechoula structure and the drilling of two to three delineation and appraisal wells on the structure”. The capital requirement is broken down to: $5Million for the testing, $10Million for the three dimensional (3D) seismic, $30Million for the delineation and appraisal wells.
On May 15, 2014, Longreach reported encountering two prospective natural gas zones with its Kamar-1 well in SidiMoktar Licence in the Essaouira Basin of Morocco. One zone was in the targeted Lower Liassic formation, with “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” in the Lower Dogger/Upper Liassic formations.
What’s crucial to the company is: “Our Kamar-1 well did not encounter any bottom water, which is excellent news for Longreach shareholders and our Moroccan partners,” said Dennis Sharp, Longreach’s Executive Chairman. “To advance those plans, the Company has initiated a series of meetings with shareholders and potential investors to source additional funding”.
Longreach has a 50 percent operated interest in the SidiMoktar Licence area covering 2,683 square kilometres. Its only (carried) partner is ONHYM, the Moroccan state hydrcocarbon company.
