Longreach targeting exploration offshore Morocco

Offshore staff

LONDON -- Longreach Oil and Gas has started trading on the TSX Venture Exchange. The company holds interests in four exploration licenses offshore and onshore southern Morocco, covering a total of around 11.8 million acres.

Of these, the offshore Sidi Moussa and Foum Draa licenses (Longreach 10%) have been explored. A prior operator acquired 5,200 sq km (2,008 sq mi) of 3D seismic and 2,000 km (1,243 mi) of 2D seismic data over the area.

Multiple prospects have been identified on each license, nine of which are thought to hold prospective resources of over 50 MMbbl. Seismic reprocessing is under way.

According to a report from ONHYM, Morocco imports around 78% of its gas and 99% of its oil needs, and domestic demand for hydrocarbons has grown at roughly 6.5% annually over the past three years. Longreach believes the country offers a favorable pricing environment and an attractive fiscal regime.

10/06/2010