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Longreach Oil and Gas
www.longreachoilandgas.com
by Deborah BacalIn late August,
Longreach was successful in farming out one of its offshore properties in Morocco.
Longreach Oil & Gas’ (CVE:LOI) stock popped Thursday, exceeding its 50-day average volume.
Shares of the exploration-stage oil and gas company rose 15 cents to 90 cents this afternoon.
In late August, Longreach was successful in farming out one of its offshore properties in Morocco.
Cairn Energy (LON:CNE) became the latest offshore explorer to beat a trail to the waters off the coast of Morocco, taking a 50 per cent stake in the Foum Draa Block in a US$61.5 million deal with San Leon Energy (LON:SLE), Serica Energy (LON:SQZ) and Longreach.
Prior to the deal, the three held stakes of 42.5 per cent, 25 per cent and 7.5 per cent respectively. After, they will have 14.17 per cent, 8.33 per cent and 2.5 per cent. ONYHM, Morocco’s oil and mining bureau, will maintain its 25 per cent interest.
As part of the deal, Cairn has agreed to pay its share of past costs – a sum of US$1.5 million – and will find the first US$60 million required to drill an exploration well on Foum Draa.
Elsewhere in Morocco, Longreach has made technical progress with identifying an inventory of prospects and leads at the Sidi Mokhtar project, which will be independently evaluated ahead of drilling that is set to start in early 2013.
A further program of 2D seismic processing is underway with a further 500 kilometre 2D program planned for the final quarter of the year.
Longreach has also defined an extensive portfolio of leads and prospects at the Tarfaya licence, where a further geophysical exploration program is currently underway.
In the meantime, 2D seismic data from the onshore Zag basin is currently being processed with interpretation expected to be completed later this year.
“Morocco has increasingly grabbed the attention of the oil industry and our focused strategy is beginning to yield results,” said chairman and CEO of Longreach Bryan Benitz in mid-August.
“We continue to make solid technical progress on our operated Sidi Moktar licence, with a full inventory of prospects and leads now mapped and under resource evaluation.”
The company is also in final stages of farm out negotiations for its Sidi Moussa offshore license in Morocco.
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