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Longreach Oil & Gas discussing its financing options

Published: 03:06 30 May 2014 EDT

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Longreach Oil & Gas (CVE:LOI) has begun discussions to obtain further funds to continue its largely successful exploration program onshore in Morocco, chairman Dennis Sharp revealed in a statement accompanying the company’s quarterly update.

On the Sidi Moktar licence, the company continues to assess the results of the Koba-1 well, drilled towards the end of 2103 and the Kamar-1, which was completed on May 1.

The latter intersected two natural gas zones measuring 210 metres in total.

"Our first two exploration wells captured extensive geological and petrophysical information that has helped define the presence of natural gas in the targeted Lower Liassic formation and the Lower Dogger/Upper Liassic formations,” said Sharp.

“These promising results that have set the foundation for the planning we currently have underway to continue our exploration work in 2014.”

Turning to the Sidi Moussa offshore block, Longreach has been told operator Genel Energy has secured a rig to sink an exploration well, with work expected to start in the third quarter.  Longreach holds a 1.5% working interest.

The company had C$3.2mln as at March 31 and it completed a private placing the following month, raising C$9.7mln, allowing the group to continue work on Kamar.

“We are commencing discussions with investors to obtain further financing of additional exploration work in 2014," confirmed Sharp.

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