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Longreach Oil & Gas eyes further financing as advances Moroccan exploration

Published: 04:17 28 Apr 2014 EDT

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Longreach Oil & Gas (CVE:LOI) plans to consider additional financing opportunities in 2014, as its Moroccan exploration programme advances.

The firm published 2013 results Monday, in which it said it ended the year with US$12.7mln in cash and subsequently rose a further C9.7mln this month in interim financing through a placing.

It plans further financing in 2014, which may include a rights offering or private placement, it said today.

Last week, the firm said it was poised to drill into the first prospective zone at the Kamar-1 well in Morocco.

Kamar-1 is the firm's second exploration well at the onshore Sidi Moktar licence and it was spudded late last month.

The firm says it is capitalising on the lessons learnt from drilling the first well at the licence - the Koba-1 - where technical difficulties were encountered.

Kamar is being drilled to a depth of 3,500 metres and is about to hit the targeted Lower Liassic formation and the firm has set an intermediate casing at around 1,960 metres.

Longreach has a 50% operated interest in Sidi Moktar licence covering 2,683 square kilometres.

At the Sidi Moussa offshore licence, where it has 1.5% net working interest, Longreach has said operator Genel has secured a rig to drill an exploration well targeting the mid-Jurassic and lower Triassic reservoirs in the third quarter of 2014.

At the Foum Draa offshore licence, where it has a 2.5% net working interest operator, Cairn began drilling the FD II-Alpha-1 exploration well in 1,500 metres of water approximately 120 kilometres offshore of Morocco.

The well was drilled to a total depth of 5,255 metres (subsea), but did not encounter clastic reservoirs. The well has been plugged and abandoned.

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