After acquiring a 50% working interest farm-in with Maghreb Petroleum Exploration and operatorship of the highly prospective onshore Sidi Moktar West, South and North licenses, Longreach Oil and Gas started acquisition of 600 km of 2D seismic on another of its four licenses in Morocco, the onshore Tarfaya license, according to the company’s second quarter financial report.
“The Sidi Moktar licenses provide us with the opportunity of near-term production and are the company’s first operated assets in Morocco. In support of the Sidi Moktar deal, we successfully raised just over C$10 million in July. These funds leave the company well financed to complete its current work programs,” said Bryan Benitz, Longreach chairman and chief executive officer.
The terms of the farm-in agreement include the acquisition of 100 sq km of 3D seismic and the drilling of two wells.
According to the Office National des Hydrocarbures et des Mines of Morocco), the Sidi Moktar licenses have to date produced 30.5 billion cubic feet (Bcf) of gas. AJM, independent petroleum consultants, have made a best estimate of 292 Bcf of undiscovered gas initially in place.
Existing pipeline infrastructure runs through the licenses, connecting the fields to the phosphate mines in the north of Morocco, where strong demand for natural gas exists.
A work program for seismic acquisition will begin shortly on Sidi Moktar.
The company is also reprocessing 1,500 sq km of 3D seismic data on the Foum Draa license and 2,000 km of 2D seismic data on the Sidi Moussa license, which remains on schedule to be completed in the third quarter.
On completion, the company’s partners in these licenses are expected to seek farm-in partners for drilling. To date, 33 leads have been identified on the Foum Draa and Sidi Moussa licenses, nine of which have been estimated to have an aggregate of 896 million barrels of gross prospective resources. The licenses are offshore, and the company holds a 10% working gross interest in each license.